Saving some pennies for a better future? How does it even work?
In short:
- Being environmentally friendly can be started by saving some pennies for our own pension fund.
- Saving money for sustainable funds proves to have a better impact on sustainability than avoiding using heaters, not travelling, or being vegan.
- The role of a parent is to teach their kids in saving their money for the better future
Does being sustainable must be so effortful?
Many of us have been very vocal about sustainability, living a more environmentally responsible lifestyle, and so on. Being sustainable, however, is more than simply demonstrating to others that we are doing something in public. Many people have been hesitant or delayed to adjust in order to be more sustainable. People simply do not know where to begin!
Many of our readers are over the age of 20, and have you ever considered the necessity of putting money aside for your retirement? It's really unlikely. This is something we had never considered before. Could putting a few pence aside for our pensions, or even in your bank account or piggy bank, help to promote sustainability? What is the mechanism behind it?
Shall we be vegan, or not fly anymore to be sustainable? Of course not!
According to Aviva's research for the UK's Make My Money Matter campaign, moving to a sustainable fund can result in a 19-tonne reduction in carbon emissions per year for the average individual UK pension saver. This is significantly more work and has a 21-fold impact when compared to saving money by utilizing renewable energy, being vegan, or not travelling at all. Many people have recently realized the necessity of being sustainable, such as not using anything that produces CO2 or not eating meat, but when it comes to investment behaviour, it is not just the environment that will benefit, but also ourselves! When people are getting older, they will be able to use their savings, for instance, their pension savings, to enjoy life and perhaps do something good for the environment.
Teach your child to save from an early age
Furthermore, building excellent financial habits early in life could be one of the most powerful levers you have to make a difference, whether by engaging with the firms you invest in to change their climate policies or by avoiding high-polluting industries entirely. Another method to get started is to verify your bank's climate policy, as it will use your money to sponsor other initiatives if you have a bank account. Some banks avoid using fossil fuels and instead invest their money in socially beneficial projects. Investing allows you to have greater control over how your money is managed. According to Becky O'Connor, co-founder of the personal finance website Good with Money and head of pensions and savings at investment platform Interactive Investor, "first, speak to your parents because they may be investing for you." So, what do you have to lose? Why wait till later or when you are sufficiently aware of sustainability to begin? This is a question for you; better late than never!
