Regional Consumers’ Spending and Saving Habits Remain Flexible in Challenging Economy, WSFS Bank’s Annual Money Trends Survey Finds
While inflation and rising interest rates have begun to subside, many regional consumers are still feeling the crunch
Economic pressures remained, with the rise in costs and inflation noted as the top driver of increased spending (69%) among those who said their spending has increased. While the economy remained challenging, many consumers were able to adapt their spending and saving techniques to put themselves on more solid financial footing.
The annual survey, which polled 1,000 respondents in the
Inflation Cools, But Economic Headwinds Remain
Rising costs and inflation remained the top driver of increased spending by far in 2024 (69%), followed by having to pay off an emergency expense (29%) or debt (28%).
Despite the fairly even split among those who have increased and decreased their spending habits, consumers largely agreed on the increased cost of living, with more than half spending more on essentials like groceries (65%), utilities (55%), and transportation (53%). A larger number say they’re spending more on groceries this year in comparison to 2023 (65% vs. 60%, respectively), as well as housing (50% vs. 43%) and utilities (55% vs. 50%).
“Many consumers are still feeling the pricing pressures in the current economy, with one-third (33%) saying they’re cutting non-essential spending,” said
While one-third indicated they are cutting back on non-essentials in this year’s survey, respondents in 2024 are slightly less likely to report scaling back in comparison to the 2023 survey (33% vs. 37%, respectively). However, they are more likely to be using their savings (19% in 2024 vs. 13% in 2023) for everyday expenses.
Adapting Spending Habits
When asked to assess how their spending has changed in comparison to last year, two in five (38%) indicated they’re spending more, and a nearly equal amount (37%) said they’re spending less.
While rising costs for essentials have continued to weigh on consumers’ wallets, they’ve adjusted to cut discretionary spending as a result, with respondents most likely to be spending less on eating out at restaurants (40%), entertainment (35%), travel and vacations (34%), online shopping and technology (both 31%).
Consumers have also adapted their preferred payment methods, with 44% using their debit card more often, 36% using cash, 35% using their credit card, and 35% using buy-now-pay-later (BNPL) platforms more often.
More than one-third (35%) of participants who use multiple BNPL services agree that they have lost track of what they owe. Additionally, 35% report they have struggled to pay back what they owe to BNPL services, and nearly half (45%) agree that they, or someone they know, has unknowingly built-up debt as a result of using multiple BNPL services.
“Regional consumers have continued to show resilience and adaptability in the face of a challenging economy,” said
Opportunities Still Exist to Save
Nearly half (46%) report that they are saving less overall compared to last year, which is slightly down from 2023 (50%), while 28% are saving more this year, up from 2023 (21%).
Of those who said they are saving more, the leading reason is to ensure future financial stability (42%) – up from 36% in 2023 – followed by having specific savings goals (41%) and being more prepared for financial emergencies or unexpected expenses (40%).
A quarter of respondents were unaware of high-yield money market accounts (24%), while 49% were aware of these accounts but had never used one. Nearly one-fifth (18%) said they were unaware of Certificates of Deposit or CDs, while 47% said they had heard of CDs but never used one.
“Goal-setting is an important part of your financial journey and can help keep your budget and savings on track,” said Kruzinski. “The economic headwinds of the past few years have certainly made it more expensive to borrow and difficult to save, but an opportunity still exists for savers to set goals and take advantage of the still-elevated interest rates through CDs and money market accounts, which tend to offer higher rates than a standard savings account. Scheduling an appointment with your local banker can be a great way to gain a better understanding of the products available to help in your financial journey, define your goals and build a roadmap to achieve them.”
Survey Methodology
The survey was conducted by research company Opinium. The sample includes 1,000 respondents in the
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