Monday, December 23, 2024
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Economic Uncertainty and Inflation Impact Retirement Prospects for Americans

2024-05-13  |  economy retirement 

... ed items (58%), and supplemental health insurance (39%) in retirement. To meet these financial commitments, this same cohort is foregoing big and small pleasures today, spending less on luxury goods (47%), leisure (44%), entertainment (44%), and vacations/trips (38%). External Factors Sway Retirement Optimism For many investors, the uncertain economic landscape presents an ongoing challenge to retirement planning. Three in 4 investors are concerned about a US economic recession in 2024, including 81% of those farthest from retirement (non-retired 18- to 54-year-olds). As a result, nearly 1 ...

Consumers Perceive Less Buying Power Despite Lower Inflation

2024-04-10  |  consumers economy 

...  On average, individuals save $175 monthly for retirement, yet over a quarter (26%) have not started saving for retirement at all. Contrastingly, average monthly discretionary spending amounted to $400 across various categories.The independent survey was conducted by a global consumer and B2B panel provider and included 1,000 U.S. adults, representative of the U.S. demographic landscape. It was carried out from February 23, 2024, to March 6, 2024, ensuring participant anonymity. ...

Households Face Financial Pressures but Remain Hopeful

2024-04-09  |  consumers economy 

... contribute to a dependent care flexible spending account, which could offer tax-free savings for summer activities.THE SUBSCRIPTION ECONOMY: Younger individuals find it more difficult to keep track of subscription expenses than older age groups.71% of Americans have a rough idea of their monthly subscription costs, but only 40% know exactly what those subscriptions are. Nearly half of Gen Xers and Baby Boomers are fully aware of their subscription expenses, in contrast to 19% of Gen Z and 37% of Millennials.20% of Americans with recurring subscriptions spend on services they seldom use (18%), ...

New York Fed's Latest Survey Reveals Mixed Feelings on Economy and Personal Finances

2024-04-09  |  consumers economy 

...  but growing pessimism about job security and the ease of finding new employment. This sentiment reflects a cautious outlook on the labor market's stability and could impact consumer spending behaviors.Household finance perceptions showed little change, but the survey highlighted a significant increase in the perceived probability of missing a minimum debt payment, reaching the highest level since the COVID-19 pandemic's onset. This increase, most pronounced among middle-aged respondents and those with lower incomes, points to rising financial pressures on American families.Despite these conce...

Investors With a Plan Double Up On Retirement Wealth

2024-03-19  |  financial planning retirement 

... that they are willing to engage a financial advisor and are interested in using digital planning tools to help with income, savings, and spendingMeyer continued, "Advances in technology have given investors greater access to effective and convenient solutions for personalized financial planning, and we expect the demand to increase, especially for tools involving retirement income."Plan sponsors can meet this need by providing digital services and financial wellness programs that address the impending needs of pre-retirees and families in retirement. These types of solutions are not only value...

Many Americans Expect Three Decades of Retirement

2024-03-12 23:15:00  |  retirement 

... ve to reach 100 years old, most do not anticipate delaying retirement in order to live longer; instead, the majority (40%) still intend to retire between the ages of 65 and 69, potentially spending more than three decades in retirement. While 26% think they will have to work past the age of 70, only 22% anticipate retiring between the ages of 62 and 64, and only 12% between the years of 50 and 61. Generation Z is the most hopeful group when it comes to retiring early (ages 50–61), with 17% considering this as a possibility."A longer life presents exciting new opportunities, but will require ...

Consumers Expect Higher Inflation Ahead

2024-03-12 23:15:00  |  consumers economy 

... nt to 5.2%. The increase was driven by respondents with a high school degree or less.Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago. Expectations about credit access a year from now also deteriorated with a smaller share of respondents expecting looser credit conditions and a larger share of respondents expecting tighter credit conditions a year from now.The average perceived probability of missing a minimum debt payment over the next three mo...

One-fourth of Couples Call Money Their Greatest Relationship Challenge

2024-02-01  |  consumers spending 

... ent of education at Fidelity Investments, "Money conversations can be daunting for couples, especially when they have competing priorities or different visions for how they should be spending, saving, and investing." “Open channels of communication are essential to any successful partnership and boost people's self-esteem, particularly when navigating expectations and financial conversations.”Even though most couples say they collaborate when making financial decisions, 1 in 5 key decision makers acknowledge that they grow irritated when they have to handle things on their own. Furthermore...

Nearly One-Third Of Americans Feel Daily Financial Stress

2024-01-22  |  consumers economy 

... he high cost of living in America is more common in women (35%) than in males (24%).Americans are adjusting their spending in order to fulfill their desire of becoming homeowners. Among those who are looking to buy a house, opening a special savings account is the most common way that people save money for a down payment (43%). Nevertheless, 29% of Americans do not currently own a home and do not have any plans to do so in the upcoming year. Just one out of ten respondents said that owning a home is highly attainable. ...

Post-Pandemic Belt Tightening Continues

2024-01-16  |  consumers economy spending 

...  over the next 12 monthsReported expected spending responses to an unexpected 10% increase in income show an average 38.4% would be used by households to pay down debt (up from 33.8% in December 2022 and the highest reading since August 2016), 45.6% would be saved or invested (down from 47.7% in prior year), and 16.0% would be spent or donated (down from 18.5% in prior year and the lowest reading since the series began in August 2015).Source:  New York Federal Reserve Bank...

Consumers Now Expecting Lower Inflation

2024-01-09  |  economy 

... .2 percentage point to 5.0%, reaching the lowest level recorded since September 2021. Still, the series remains well above its February 2020 pre-pandemic level of 3.1%.     Perceptions of credit access compared to a year ago were largely unchanged. Expectations about credit access a year from now instead improved with a larger share of respondents expecting looser credit conditions and a smaller share of respondents expecting tighter credit conditions a year from now.The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months...

Personal Financial Management Becomes New Frontier for Bank and Credit Card Apps

2023-06-01 12:00:00  |  banking credit cards technology 

... ctively engage with three or more personal financial management tools, such as credit score monitoring, spending analysis and budgeting tools, overall satisfaction scores rise 127 points vs. when these tools are not offered. The first hurdle to lifting satisfaction with these tools is garnering wider tool use.Virtual assistants do heavy lifting on adoption: Customers who use a virtual assistant provided on their banking app are four times more likely to use personal financial management tools.Regional banks struggle to compete: Among banking apps, national banks perform considerably higher in ...

End-to-End, Third-Party Operating Models Deployed by Wealth and Asset Managers Are Transforming the Industry

2023-06-01 15:00:00  |  asset management 

... 15%). With wealth and asset managers facing continuous margin compression driven by the increasing share of passive investments, rising competition from digital players and the consolidation of large incumbents with significant scale advantages, return on assets fell by 3% per year from 2018 through 2021. While advisory fees have remained relatively stable, product fees have been hit by fierce competition and increased cost transparency, with declines of 11% for active funds and 35% for passive funds since 2017. Finally, asset-servicing margins for clients with more than $2 million have decrea...

Americans Facing a New Retirement Reality

2023-05-30  |  demographics retirement 

... s to balance savings and spending compared to when they were young.Generation X Feeling the SqueezePlanning for the new retirement reality is particularly challenging to Generation X -- those born between 1964 and 1978. Unlike Millennials, who still have ample time to save before retirement, and Boomers, many of whom are already in retirement, Generation X is realizing that retirement is getting closer and they may not be ready, nor do they have a clear picture of how to get there.Gen Xers’ confidence in their ability to financially support all the things they want to do going forward is the...

Three-Fifths Of Americans Living Paycheck To Paycheck

2023-02-28  |  consumers 

... ively, of cardholders. Consumers continue to have a financial backlog that they will carry into the foreseeable future even as they modify their spending habits to fit the demands of the current economic situation. The average consumer has credit card debt equal to 35% of their available savings, but people who are living paycheck to paycheck typically have more debt than they do savings. According to the data, people who live paycheck to paycheck and have no trouble paying their bills have average outstanding credit card balances equal to 62% of their available savings, while people who st...

Majority of Consumers Want Fewer Marketing Messages

2023-02-27  |  consumers 

...  better with fewer right messages delivered at the right time. If firms do this correctly, they may connect with consumers rather than alienate them while spending less on marketing. It presents an opportunity to maximize marketing expenditures and foster enduring client loyalty." ...

Most U.S. Consumers Living Paycheck to Paycheck

2023-01-30  |  consumers economy 

... l the economy recovers, more Americans of all incomes will say they live paycheck to paycheck. Consumers must review spending and save for the unexpected now more than ever."...

Many U.K. Consumers Struggling With Credit Card Debt

2022-09-22  |  consumers economy 

... tober, which may make consumers' financial worries worse. Banks must now do more to help struggling families by providing flexible lending options, wise budgeting tools, and improved spending information. For banks to remain "top of wallet," they must create individualized, user-friendly loan choices that assist consumers in navigating growing pricing.The study also reveals that UK consumers' concerns about inflation and the cost of living are having an impact on their purchasing behavior. 73% of those polled claimed they would cut back on their expenditures, while 54% admitted they had to put...

Money Top Source Of Stress For Women

2022-09-22  |  consumers demographics women 

... rebounded relatively quickly as the labor market recovered and access to paid family leave began to expand. Since then, however, it's been driven further down, as high inflation impacts her spending power and the overturning of Roe v. Wade clouds her economic future. No wonder consumer confidence has been falling, even as women return to the workforce." The Ellevest Financial Wellness Survey 2022 gives further insights into women's money mindsets. Highlights from the findings show: Women are prioritizing their financial goals differently than men: There are stark differences between me...

Consumer Spending Not Wilting In Summer Heat

2022-08-09 12:10:00  |  consumers economy 

... g the pinch the most. In July, Gen Z's median payment increased 16% year over year, compared to just 3% for Baby Boomers. Average gas spending as a percentage of total card spending per household for lower-income households ($50k per year), which peaked at nearly 10% in June, decreased to 9.3% in June as oil prices fell throughout July. According to internal expenditure and payment data, Anna Zhou, economist with the Bank of America Institute, "consumers are not wilting in this summer heat." While 34% of US families are renters, "relief from decreased gas costs and shop promotions encour...

Inflation Causing Stress and Anxiety

2022-08-09 12:00:00  |  economy inflation 

... ors believe navigating the current inflationary environment will affect their spending and saving habits, Williams said. Prudent financial decisions during uncertain times may make budgeting or investing easier when the economy improves. Now is the time to consult a financial advisor if you need help managing the uncertainty. Source: State Street ...

Can Declining Customer Satisfaction Help Curb Inflation?

2022-08-09  |  economy inflation customer experience CX UX 

... nusual for GDP and ACSI, which measure the quantity and quality of economic production, respectively, to decline in an environment with a healthy labor market. The fact that consumer spending is rising is also unusual. It not only makes up the majority of GDP, but it also has a positive correlation with rising rather than falling consumer satisfaction. But our current economy is contradictory in that way. To make matters worse, given the ACSI numbers show that inflation is not properly compensated for the deterioration in quality, especially in services, inflation is probably far greater than ...

Households Expect Sharp Decline In Inflation

2022-08-08  |  economy inflation 

... ning of this year, also declined to 2.3 percent from 2.8 percent in June. Expectations about year-ahead price increases for gas and food fell sharply. Home price growth expectations and year-ahead spending growth expectations continued to pull back from recent series highs. Households’ income growth expectations improved. Source: New York Federal Reserve...

Inflation Risk Tops Financial Concerns For Women

2022-08-05 12:00:00  |  retirement women 

... ay Social Security to boost monthly benefits. Keep a diversified investment portfolio for growth and use annuities or pensions for retirement fixed costs. Keep track of your spending to avoid unnecessary or impulsive purchases." Only 12% of women are risk-averse investors. 62% are riskier than their parents, while 35% are riskier than their partners. "Women should embrace market risk but also protect their futures," said Alliance for Lifetime Income CEO Jean Statler. "41% of women say portfolio protection is more important than high returns. As women near retirement and enter their highe...

Inflation Concerns Slowing Middle-America Spending

2022-07-14 12:00:00  |  consumers economy 

... March) as does their current financial situation (25%, up eight percentage points since March). Most plan to cut back on spending. Nearly three-quarters (71%) report cutting back on restaurant/takeout meals, up from 57% in March. Nearly the same amount (69%) say they plan to keep their current technology instead of upgrading, up from 44% in March. And about half (49%) are planning to budget or cut back on groceries, up from 37% in March. Reassessing major purchases. Overall, more than one-third (38%) have already delayed a major purchase due to rising interest rates, including the bi...

Retirement Savers Remain Confident in their Plans

2022-05-19 12:02:00  |  retirement 

... o their financial strategies while not allowing short-term anxiety to derail their plans for retirement.” Americans are making changes to their spending habits to maintain or increase contributions to their retirement savings. Respondents say they are cutting back on social activities like eating out (35%), nightlife (31%) and travel (28%), though some report holding off on larger expenditures like home renovations (16%) or having more children (13%). Although Americans report being committed to maintaining their retirement savings contributions, they have also adjusted their short-ter...

Millennials Want Financial Advice, Not Trophies

2022-05-04 12:00:01  |  advice demographics 

... ...

Two-thirds of U.S. Lives Paycheck to Paycheck

2022-05-02 12:00:00  |  consumers credit 

... ied consumers who struggle to pay their bills report spending an average of $3,100, with a limit of $6,500. Consumers who don’t live on paychecks report spending an average of $2,100, with a cap of $9,000. Many consumers who pay monthly are still creditworthy, have good credit scores, and tend to use personal loans, credit cards and other payment methods such as personal loans to manage their cash flow. Source: LendingClub...

Consumer Confidence Lower in April

2022-04-26 12:00:00  |  consumers 

...  risks to confidence and may further curb consumer spending this year." Present SituationConsumers' appraisal of current business conditions was mixed in April. 20.8% of consumers said business conditions were "good," up from 19.6%. Conversely, 21.9% of consumers said business conditions were "bad," up from 21.4%. Consumers' assessment of the labor market was less upbeat. 55.2% of consumers said jobs were "plentiful," down from 56.7%. 10.6% of consumers said jobs are "hard to get," up from 9.6%. Expectations Six Months HenceConsumers'...

Millennials Are Reshaping What It Means to Retire

2022-04-25 14:00:00  |  demographics financial planning retirement 

...  maintain a healthy spending and entertainment budget. Relaxed Minimalists – approximately 31-41% of future retirees | 22.4-29.6 million Millennials Equally satisfied by the company of their close-knit inner circle and the simple pleasures of their day-to-day routines, Relaxed Minimalists will value deep relationships more than other personas. They will place less focus on finances and devote more time to hobbies, relaxation and me-time. High-Tech Jetsetters – approximately 24-34% of future retirees | 17.3-24.5 million Millennials Nomadic and fast-paced in nature, High-Tech...

Americans Fear Inflation Impact on Retirement Savings

2022-04-20  |  inflation retirement 

... s and the ability to maintain their current lifestyle (71%). Retirement concerns greater among Generation X and millennials Adding to the concerns of being able to meet current spending needs, Voya’s survey also found a majority (84%) of Americans feel like their money does not go as far as it used to go, leaving many to wonder how saving for the future will be able to remain a priority. But what Voya’s survey revealed as most interesting is the generational view on retirement stemming from the impacts of inflation today. Voya’s findings noted that three-quarters (73%) of millennia...

Research Roundup: Week of January 2, 2022

2022-01-04 09:32:54  |  consumers cryptocurrency housing 

... om one service could easily be shared with another service. Source: Accenture ...

Technology More Important Than Ever For Boomers

2021-12-21 09:22:18  |  boomers technology 

...  for Americans in their 50s, and their new habits will continue,” said Alison Bryant, AARP's senior vice president of research. “Those who can afford the technology are spending a lot more than they did a few years ago, more than double what they spent in 2019. And their motives differ: some use technology for work, others to stay in touch with family and friends, and others to allow or help them grow old on the spot. At the same time, we are also aware of the digital divide, where lack of access can also mean inability to access technology and its benefits. " Older peopl...

Happy Thanksgiving!

2021-11-26  |  economy retirement travel 

... ked phone calls and regular mail as the least preferred methods of business communication....

COVID-19 Undermines Womens Retirement Security

2021-10-29 09:08:19  |  demographics retirement 

... 2 percent), volunteering (28 percent), and taking care of their grandchildren (21 percent). More than three in four are saving for retirement (77 percent) through employer-sponsored plans (e.g., 401(k) or similar plans) and/or outside the workplace (e.g., in IRAs, mutual funds, or bank account). Among those who are saving, women started saving at age 28 (median). Some are taking loans and early withdrawals from retirement accounts. Twenty-seven percent of women have taken a loan, early withdrawal, and/or hardship withdrawal from their 401(k) or similar plan or IRA at some point, including ...

Retirees Spending Significantly More Than Expected in Early Years of Retirement

2021-10-21 12:00:00  |  retirement 

...  from approximately 4,500 DC plans with more than 1.4 million participants1. Retiree spending data comes from more than five million de-identified JPMorgan Chase Bank, N.A. (Chase) households. Source: J.P. Morgan Asset Management...

Gen Z Has The Lowest Financial Literacy

2021-10-20 12:10:10  |  demographics 

... ing: budgets and managing spending. Saving: factors that maximize accumulations. Investing: investment types, risk and return. Borrowing/managing debt: relationship between loan features and repayments. Insuring: types of coverage and how insurance works. Comprehending risk: understanding uncertain financial outcomes. Go-to information sources: recognizing appropriate sources and advice. Source: TIAA...

No Place Like Home

2021-10-20  |  housing 

... nsible credit behavior. The bank offers innovative low down payment mortgages, as well as down payment and closing cost grants (no repayment required) designed to make homeownership accessible and affordable for those with a healthy financial picture. While many prospective buyers can afford monthly mortgage payments, they report high rent costs (57%) and expensive home prices (54%) are making it harder to save for the upfront costs of homeownership. That's why Bank of America's Community Homeownership Commitment® was created – to address the challenges many would-be buyers face. Already, ...

Pandemic Spurred U.S. Workers to Reevaluate Life and Finances

2021-10-11 12:00:00  |  retirement 

... ees who use financial wellness tools say they see a positive impact as a result. Seeing a holistic view of their financial health, including spending, saving, debt and protection, can help them better plan for and achieve multiple financial goals. The importance of education Education and tools can help employees make sound financial decisions, and also drives their overall confidence and engagement. Savers who use employer-provided financial resources are more than twice as likely to have increased the amount they contribute to their retirement plan in the past year. However, eight i...

Inflation Tops Healthcare As Biggest Financial Fear Among Retirees

2021-09-09  |  retirement 

... ...

Consumers Financial Confidence Is Up

2021-09-08  |  consumers 

... ng, etc.). These negative financial behaviors rose across many age cohorts with those ages 25-35 up to 63% from 53%; ages 35-44 jumped to 62% from 55%; and ages 55-64 up from 21% to 30%. "While it's encouraging that many Americans are feeling confident they're accomplishing real financial progress, we want to ensure their progress is sustainable through the economic recovery," said Paul Dilda, head of consumer strategy for BMO Harris Bank. "Consumers should continue to focus on the long term while the economy is good to continue the progress many made last year. They can wor...

Average Back-to-School Spending Reaches $498, and 33% of Parents Will Go Into Debt To Pay For It

2021-08-09 09:26:29  |  education 

... ers for quality control. Source: LendingTree.com...

Long-Term Care Costs Could Top $600K In Retirement

2021-06-22 10:08:19  |  healthcare 

... actuarial life expectancy of age 87. Assuming national average costs across all states and a blended average of different types of LTC, the report shows that he can anticipate spending $237,368 ($123,881 present value) for an expected 660 days of care. This excludes Medicare premiums and co-pays. A healthy 65-year-old woman living to an actuarial life expectancy of age 89, has a 56% probability of needing long-term care. Her average duration of care will be 992 days and projected costs will be $373,712 ($183,841 present value) or 58% higher than her partner, given the longer period of care ...

Men Ready To Splurge On Vacations

2021-06-22 09:08:15  |  travel 

... with friends and family they haven't seen in a while, rather than go on the urban or cultural adventures they might have pursued in the past. When asked the type of vacation they'd like to take this summer, 24% of respondents said a relaxing beach or self-care type of break and about a quarter of men and women are planning to see family or friends. Only 6% of respondents are planning to go on a city or cultural vacation. 2021 will not be the summer of international getaways. Americans are planning to exercise caution in their summer travel. The survey shows this summer won't be the summer of ...

Out of Town Movers Reshuffling to Larger, More Affordable Homes

2021-06-08 12:00:00  |  housing 

... riciest cities and toward more affordable ones, which will tend to cause prices to rise in their destinations. It may also spread out some of the consumer spending, tax revenues and job growth that have been increasingly concentrated in "superstar cities" over the last few decades. Home values are rising fastest in places like Austin and Phoenix, and most slowly in San Francisco, which led the U.S. in appreciation as recently as 2016. Nationwide, the average home value in ZIP codes people moved from was about $419,000, compared to an average home value in destination ZIP codes of about $392...

Home Improvement Retailers Buck Online-Only Shopping Trend

2021-06-01 12:01:00  |  retail spending 

... rom 2,172 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months. The study was fielded in January-February 2021. Source: JD Power...

Location, Location, Location?

2021-06-01  |  housing real estate 

... tapping into their home’s equity. “For many of us, remote work, virtual learning and spending an increased amount of time at home over the last year has highlighted the need for ample space,” said Joye Hehn, Next Step financial education manager for Regions. “As people hunt for homes that check this and other boxes on their wish lists, Regions is committed to providing free tools and resources people need to be financially prepared for every step as a homebuyer and homeowner.” The Regions Next Step omnibus survey questions were part of a national online survey that took place...

Interest in Investing Emerges as a Lasting Pandemic Legacy

2021-05-28  |  consumers investing 

...  21% and 20%, respectively, a year ago in Q1 2020. Spending on essential goods and services—including housing, groceries, routine transportation, medical, education, and health care—totaled 55% of household budgets in Q1, up +5.3 ppts compared to the previous quarter's atypical pattern. One exception to this cutting back was on savings and investments, which accounted for 9% of budgets in Q1, up +1 ppt from Q4 2020 and +2 ppts year over year. Source: The Conference Board...

Improved Consumer Confidence Does Not Translate to Higher Spending

2021-05-27  |  spending 

... hey expect to cut back on spending from pre-pandemic levels, which is only a slight improvement (59 percent versus 62 percent) over the previous year, suggesting that consumer spending habits may be undergoing a long-term shift. Similarly, the survey found some improvement in expectations about purchase decisions, but three out of four consumers last month said that their purchase decisions have been impacted, down from 89 percent last April. “Retailers may be encouraged by the green shoots they are seeing now that many places are reopening, but it would be foolish of them to assume th...

Pandemic Takes Heavy Toll On Working Women

2021-05-19 12:00:00  |  pandemic demographics 

... ng on more responsibilities managing household and caregiving tasks: 59% say they're spending more time on domestic tasks; 35% are spending more time caring for children; and 24% cite more time caring for dependents other than children. As a result, the survey suggests that women's wellbeing has fallen significantly since the pandemic: only one third of women consider their mental wellbeing today to be "good" or "extremely good," compared to 68% prior to the pandemic. With their mental wellbeing on the decline, women around the world are concerned about the impact of their...

Revenge Summer Is Coming

2021-05-18  |  consumers spending 

... t worse certainly gave some comfort. Americans might return to old spending patterns, but hopefully the new saving habits stay intact." Frerichs recommends Americans build an emergency fund of three to six months of income. "Given the job insecurity that occurred as a result of COVID-19, it's always important to keep an emergency pool of funds to tap into in case situations go awry." A finding from the survey also concludes that many Americans (66 percent) have been setting aside money for savings and investments—a healthy habit to maintain throughout the summer. "Sett...

Visa Confirms Recovery On Firm Ground

2021-05-12 12:20:00  |  consumer spending 

...  200. When the Visa SMI rises above 100, the consumer spending momentum is strengthening and when it falls below 100, the spending momentum is weakening as fewer consumers are spending more relative to the previous year. The index is adjusted for day of week, month, holidays, and broad annual trends, and these seasonal adjustments are subject to revision each year. Source: Visa SMI...

College Students Ready to Handle Own Finances

2021-05-12 12:19:00  |  demographics 

... f pragmatism. They are showing some good personal finance habits, with 73% saying they stop spending when cash is running low and 71% checking their bank accounts regularly. These steps could help with managing money in the near term, and the surveyed students also say they will be making moves that promise a more lasting impact. Over two in five (43%) plan to start saving for retirement within the next year, and 44% also plan to build up an emergency fund of 3 to 6 months of living expenses. Students are also more confident in their plans for repaying student loans. Over three in four coll...

Healthy Money Habits on the Horizon

2021-05-12 12:00:01  |  advice financial planning 

... ...

Why Does U.S. Customer Satisfaction Keep Falling?

2021-05-11 12:00:00  |  consumers 

... th. However, as the pandemic now seems to moderate or contract, GDP increased at an annual rate of 6.4% during the first quarter and, due to a massive pent-up demand, consumer spending grew by a record 10.7% — even as customer satisfaction declined. Low customer satisfaction will not matter much to GDP growth in the short run. In the long term, when the pent-up demand has run its course, it would be problematic if customer satisfaction continues to plummet. So, what’s behind deteriorating customer satisfaction? Let’s look at the usual reasons: inflation, unrealistic consumer expectati...

U.S. Workers Show Resilience Amid Pandemic

2021-05-11  |  employment workplace 

...  last year, followed by using social media, spending time with pets and reaching out to friends or co-workers. Coping strategies varied somewhat by age group: baby boomers were more likely to keep in touch with others, while millennials were more likely to turn to social media or a new hobby. The survey also found a correlation between employer-provided resources and workers’ mental health. Thirty percent of respondents who believe their employer has provided ample mental health resources also reported that their ability to manage stress improved during the pandemic, and one-third (33%) n...

Majority of Americans Report Pandemic Personality Changes

2021-05-10 12:00:01  |  pandemic 

... rvices in the future. 96 percent of Americans are planning to enjoy at least one previously restricted activity when it's safe. The most anticipated activities include indoor dining (74 percent), travel out of state (72 percent), and concerts (61 percent). More than half of people in loyalty programs (54 percent) are concerned that accrued rewards points will expire. "We experienced several paradoxes over the last 13 plus months. We were lonely, yet more connected online. We were bored, yet took on many new hobbies. We were isolated from in-person learning, yet still feel smarter," said...

Millennials Plan to Spend More on Luxury Travel

2021-05-10 12:00:00  |  demographics travel spending 

... ip. While most groups identified cost as a leading factor when booking their next trip (close to 60% of respondents), only 40% of high-income Millennials listed this as a concern. "Throughout this pandemic our research and insights have always shown us consumers' resilience and wanderlust to travel. In this latest joint report, it's fantastic to see U.S. traveler confidence returning, especially to destinations further afield," said Christine Maguire, general manager, global media business, Tripadvisor. "What is also encouraging for brands and destinations is that, among ...

Parents Continue to Face Financial and Work Challenges due to COVID-19

2021-05-06  |  pandemic workplace 

...  challenges for parents according to the index. More than half (52%) of parents are spending more on monthly family-related costs due to the pandemic, and one-third are spending $1,000+ more per month. Nearly two-thirds (65%) of parents dipped into savings over the last three months, significantly more than the general population (45%). The survey also found: The top challenge parents have faced during the pandemic is balancing caring for children with working. Nearly one in four (39%) parents are working more hours now than before the pandemic, with 40% citing childcare responsibili...

Retail Sales Jump 23%

2021-05-06  |  retail spending 

... nted establishments) Limited-Service: Quick service (traditional quick-service low priced restaurants), Fast Casual (limited service restaurants that offer upscale menus) Source: MasterCard...

Consumers Financially Optimistic After Difficult Year

2021-04-29 12:00:00  |  consumers 

... eir spending habits and savings, according to a new survey from Chase. Optimism is slightly higher among Black (54%) and Latinx (49%) respondents as many have taken action to improve their credit, spending, or earn a second income. The new Chase Financial Health Consumer Study—conducted in partnership with Morning Consult—surveyed more than 5,000 U.S. consumers on the state of their finances, attitudes towards saving and budgeting, and actions they’ve taken to improve their financial health. The survey polled consumers across all demographics and took a closer look at the financial ...

Job Satisfaction Remains High Despite Pandemic

2021-04-26 12:00:10  |  employment pandemic 

... d with their jobs. A mixed bag: While some respondents may have appreciated the increased flexibility and the elimination of a daily commute, others may have suffered from the lack of in-person interaction and perhaps a less-than-ideal working environment at home. Age impacted job satisfaction: Older workers actually grew happier during the pandemic—but not younger workers. Age matters: Those under 35 experienced a drop in satisfaction, while those 55+ experienced an increase. Better benefits: Older workers are likely to benefit more from the additional resources offered by comp...

Pandemic's Impact Compels Parents To Talk Money With Their Kids

2021-04-20 12:00:09  |  pandemic 

... oal-setting, spending versus saving, inflation, asset allocation, and investment diversification. PARENTS ARE TALKING TO THEIR KIDS ABOUT MONEY MORE THAN EVER A record number of parents are having money conversations with their kids regularly: T. Rowe Price recommends that parents discuss money matters with their kids once a week or more. In 2021, a record number of parents followed T. Rowe Price's recommendation with 47% of parents having money conversations with their kids once a week or more. Since 2017, less than 35% reported following T. Rowe Price's recommendation each year. More ...

COVID-19 Has Exacerbated Economic Inequality in the U.S.

2021-04-15 12:00:01  |  pandemic retirement 

... ans will be able to participate at varying degrees, with lower-income Americans least likely to participate in a post-COVID-19 spending boom. As COVID-19 decelerates: Those making more than $50,000 per year are more likely planning to take a vacation, shop at locally owned stores, dine-in at restaurants and work from home than those making less than $50,000 per year. Those making more than $50,000 per year are more likely saving and budgeting for visits with friends and family than those making less than $50,000. Nearly half of U.S. adults making more than $100,000 per year plan to take...

Say Goodbye To Money Management By And For Men

2021-04-14 12:01:00  |  demographics investing 

... , finance will be forced to evolve from the dry, hush-hush, one-size-fits-all, male-dominated industry that we all know into a more positive and brighter build—one that is more candid, colorful, human-centric, values-driven, inclusive, and even fun. It's a fresh start. And in that fresh start, there's a huge opportunity for finance brands to help us reset, especially as we plan for life post-pandemic," concluded Cecelia Girr, Director of Cultural Strategy for TBWA's Backslash. The Future of Finance report can be downloaded at https://www.backslash.com/futureof. Source: Backslash...

Global Consumer Confidence Hits Record High

2021-04-14  |  consumers global 

... with the vaccination campaigns on the way, although slow, and the resulting economic rebound in 2021. North America: Consumer confidence fell in the first quarter of 2021, driven by a dip in confidence in the US – likely due to the slow initial rollout of the vaccines and the heightened political tensions from the protracted election season – while confidence rose in Canada. The decline is expected to be temporary. In the US, concerns about the economy loomed large, but ebbed slightly. Concerns about health ticked up slightly. Notably, concerns about political stability appeared to ...

Gen Z Least Likely To Return To Old Behaviors After Vaccination

2021-04-08 14:00:00  |  retail travel 

... hts on consumer behavior since April 2020, about how COVID-19 has impacted their outlook and preferences. Source: IBM...

U.S. Retail Sales Grew 26.3% Year-Over-Year in March

2021-04-08 12:00:00  |  consumers spending 

... c. In comparison, during the second half of the month, retail sales rose 46.9% YOY. This growth reflects both the positive boost of the stimulus payments on consumer spending as well as the lockdowns that weakened retail sales across the country in the same period in 2020. The unique retail scenario of last March is also seen in the year-over-year comparison for the sectors. For instance, in March 2020, discretionary sectors such as Apparel and Jewelry experienced a dip in spend when people first started social distancing; this has led to significantly elevated growth rates this Mar...

Pandemic Changes How We View Home

2021-04-07  |  pandemic housing 

... ream Home Improvement Trends Survey,1 nearly half (47%) of U.S. homeowners say they are utilizing their space differently since the onset of the pandemic. And more than two-thirds (69%) say spending more time at home has made them eager to upgrade. The LightStream survey reports that 91% of respondents say a lack of space in their home became a big frustration during the COVID-19 experience. Younger homeowners in particular say they wish they had more room (63% of Gen Z vs. 71% of Millennials vs. 64% of Gen X vs. 47% of Boomers). As a result, 12% of those with home improvement plans f...

FICO® Scores Increased Amid Pandemic

2021-04-05 12:00:20  |  consumers 

... decreased by 10 percent from one year ago, with 37 percent currently worried. Also, anxiety about the economy fell from 66 percent to 58 percent. Moreover, consumers plan to increase spending in areas such as travel (by 14%) and entertainment (by 8%). Consumers continue to be financially diligent Half of consumers surveyed will use the recent stimulus payment to pay down current monthly bills, while 44 percent will put the money into savings. Nearly 2 out of 3 survey respondents say they will find new ways to save money in the coming months, and 36 percent will work to improve or maintai...

Many Americans Still Lack Critical Financial Knowledge

2021-04-05 12:00:05  |  consumers 

... investment types, risk and return. Borrowing/managing debt: relationship between loan features and repayments. Insuring: types of coverage and how insurance works. Comprehending risk: understanding uncertain financial outcomes. Go-to information sources: recognizing appropriate sources and advice. Source: TIAA Institute...

Gen Z Lacks Knowledge and Confidence in Personal Finance

2021-04-01 16:00:00  |  demographics investing 

... l habits. Today, Greenlight serves 2.7 million parents and kids, who have collectively saved more than $100 million. Teens are also looking to schools for financial education, yet only 21 states require a personal finance course for high school students. To help fill this gap, Greenlight is introducing its first-ever collection of free educational resources for the classroom with Kahoot!, the leading game-based learning platform for teachers and students. "Teaching financial skills both at home and in schools is so important, but often parents and teachers don't have the tools they need. G...

Investors Lack Resources To Save For Retirement

2021-04-01 15:00:00  |  retirement investing 

... to move from saving money for retirement, to spending money in retirement. In addition, only 19% of respondents are very confident they know how to set up the right drawdowns from their savings and investments. In fact, while investor preference for the predictability of a retirement paycheck is clear, more than a quarter of investors (28%) have failed to consider what they’ll do with their money after they retire — including a third of Gen Xers (32%), and a quarter of baby boomers (24%) who are much closer to retirement.  401(k) confidence  The survey finds the majority of in...

Homeownership Remains Affordable For Average Workers Despite Price Spikes

2021-04-01 12:00:01  |  housing real estate 

... ...

Two-Thirds of Consumers Have Forgotten About At Least One Recurring Payment

2021-04-01 08:20:22  |  payments 

... uture or recurring payments. What was once a couple of clicks, can now be done with one touch. However, these payments may lead to confusion over what cardmembers are actually spending each month. Seventy-eight percent of respondents have a minimum of one recurring charge on their cards each month; 40% have between three and five. Cardmembers crave simplicity and frictionless payment options when given the choice. Almost 70% of consumers note that recurring payments can make it easier to manage and track their money. Conversely, 55% of respondents admit they don’t know how much is ...

Home Prices Hit an All-Time High of $370,000 in March

2021-04-01  |  housing real estate 

...  just 29 days on average, 30 days faster than last year. Homes also are selling fast in Riverside, Calif., and Austin, Texas, where they are spending 23 and 26 days on market on average, respectively. Source: Realtor.com...

The Pandemic Has Shifted Investors Financial Priorities

2021-03-31 16:00:00  |  pandemic investing 

... de big ticket purchases or large expenses, including a home renovation. And once the pandemic ends, a quarter of investors anticipate spending more money than usual on activities they had to postpone. Seeking financial guidance As investors take concrete steps to shore up their finances, many value advice from a professional. A vast majority (83%) of respondents with a financial advisor said the pandemic confirmed the importance of working with one while nearly four in ten (39%) investors who do not have an advisor believe working with one could help them withstand unexpected changes. To...

Pelotons and Penny-Pinching

2021-03-31 14:00:00  |  pandemic spending 

... yles, permanently raising expectations for convenience: Faced with pandemic lockdowns, consumers have become accustomed to digital capabilities that save time and effort in every stage of the customer journey. In both consumer and B-to-B industries, brands will need to meet new standards: "anytime–anywhere" access; real-time information; high-quality filtering, search, and review functions; and responsive support across multiple channels. E-commerce surged during the pandemic, peaking at 16.1% of total retail sales in Q2 2020. This figure—a metric of where a purchase took place—dram...

COVID-19 Changes In Credit Card Use Might Be Permanent

2021-03-31 12:00:04  |  pandemic spending 

... "The latest credit card survey shows that Americans are finally taking their credit card spending seriously. While overall debt has ticked up a couple percentage points across the board year over year, the fact that consumers are sticking to a few cards, avoiding hitting their credit limits, and charging less frivolously, are all good signs for a post-pandemic world.""I'd never say there's a silver lining to a pandemic, so I'll just say I'm hopeful we've learned some solid financial lessons," Silvestri says. "We'll know for sure when we conduct our credit card survey next year." Source: Debt....

Consumer Confidence Surged In March

2021-03-30 15:00:00  |  consumers 

... ely due to rising prices at the pump, and may temper spending intentions in the months ahead." Consumers' assessment of current conditions improved significantly in March. The percentage of consumers claiming business conditions are "good" increased from 16.1 percent to 18.5 percent, while the proportion claiming business conditions are "bad" fell from 39.7 percent to 30.5 percent. Consumers' assessment of the labor market also improved. The percentage of consumers saying jobs are "plentiful" increased from 21.6 percent to 26.3 percent, while those claiming jobs are "hard to get" declined fro...

Personal Income Drops In February

2021-03-26  |  economy 

... ...

Millennials Chasing The American Dream

2021-03-25 12:00:00  |  millennials housing 

... nd for many first-time homebuyers with nearly a quarter (24%) responding that they began saving money and changed their spending habits, while 20% figured out their budget. The most common way to save is setting aside a certain amount from each paycheck (50%), while 45% said they also cut out discretionary expenses, such as gym memberships and eating out for lunch. Twenty-nine percent put away lump sums from annual bonuses, tax returns and gifts. With a majority of respondents having been in the market since last spring, they are fully aware of the competition they are facing. Fifty-thre...

Saving In A Pandemic Economy

2021-03-25 09:08:19  |  pandemic saving 

...  which has proven out this past year,” added Fanning. “Building a financial cushion for emergencies and the future, and constantly assessing your financial plans and preparedness against changing circumstances, are key to both navigating current challenges and building financial security for a lifetime.” Source: MassMutual...

Majority Of SME CEOs Plan To Maintain A Hybrid Workforce

2021-03-24 12:00:00  |  economy employment 

... d investment spending were planned by 44 percent of respondents during the first quarter of 2021, up from last quarter's 40 percent and last year's 38 percent Planned increases in hiring were reported by 66 percent of CEOs, just above last quarter's 64 percent and substantially above last year's 55 percent Source: Vistage...

Home Sellers In Driver's Seat

2021-03-24  |  housing real estate 

... nding more on down payments, homebuyers have been boosting their bids. During the last six months, 1 in 3 buyers (34.4%) paid more than the seller's original asking price, up from 1 in 5 buyers (21.2%) a year earlier. "It's extremely competitive out there. One of my buyers recently beat out 25 other bids by offering $120,000 over the $425,000 asking price on a three-bedroom single-family home," said Portland Redfin real estate agent Mark Peterson. "There was a competing offer for the same amount, but my client won by opting for a shortened inspection period, accepting the home ...

COVID-19 One Year In

2021-03-21  |  pandemic 

... en higher (36%) for ages 18-34. Discretionary spending makes gainsWhile financial stress weighs on consumers, global intent to spend on discretionary items, which had stagnated since last summer, is improving in the U.S. and Europe, with mixed sentiments in Asia. With the vaccine rollout and latest stimulus, further signs of easing can be expected. Three in 4 U.S. consumers surveyed plan to spend the same or more on apparel and restaurants in the coming weeks. Signs of optimism are emerging for areas like travel, with vaccinated consumers indicating higher intent to travel and stay in ho...

Just 26% of Americans Near or at Retirement Age Have Enough Saved for Retirement

2021-03-18  |  retirement 

... ers ages 45 –75 from January 20— 27, 2021. Respondents were fairly evenly split by age and gender; age: 45-59 (367), 60-69 (348), and 70+ (285); male (501), female (499). Source: Schroders plc...

Retirees Reduce Spending As They Age

2021-03-16  |  retirement 

... r price index and presented in 2019 dollars. Source: T. Rowe Price...

Early Retirement Withdrawals Drop Among Female Investors Year Over Year

2021-03-12 15:00:00  |  demographics retirement 

...  followed by rent or mortgage (41%). And the top reason women withdrew early from their retirement funds was for a medical emergency (13%). Paying for education costs (10%) or spending on herself or her family (10%) closely followed. “Amid an incredibly disruptive year, it’s encouraging to see female investors thinking long-term and putting more away for their future selves,” said Deniz Ozgenc, Executive Director of Financial Product Management at E*TRADE Financial. “The pandemic has taken a major toll on us all, so it’s no small feat to prioritize retirement and rebound from the ...

Nearly 4 in 10 Americans Are Mooching Off Someone Else's Streaming Account

2021-03-12 14:00:00  |  technology 

... r example, don't throw away a good grocery rewards card for one that gives more for streaming." To view the full report, visit: https://www.lendingtree.com/americans-mooching-streaming-accounts/. MethodologyLendingTree commissioned Qualtrics to field an online survey of 1,546 Americans, conducted Feb. 11 to Feb. 16, 2021. The survey was administered using a non-probability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control. Source: LendingTree.com...

Americans Spending More Time Managing Savings

2021-03-04 09:18:26  |  savings 

... nding more time managing their savings now than they were this time last year (i.e., before the start of the COVID-19 pandemic), with just 9% spending less time. Similarly, Americans report spending more time budgeting everyday expenses (26%) and paying and reconciling their bills (21%), with only 10% and 8%, respectively, saying they spend less time on these activities today versus a year ago. The survey asked Americans to select up to three choices from a short list of options regarding how they would be most likely to spend extra time if they had it, and Americans most commonly say that ...

Black Americans Continue to Trail Their White Counterparts in Building Wealth

2021-02-25  |  investing demographics 

...  in greater numbers than white Americans. Black Americans were more likely to cut spending on both extras (50% vs. 41%) and basics (19% vs. 13%). Student loan delay or deferral was reported as being three times more common among Black Americans (16%) than whites (5%). Despite this, a sizable minority of Black Americans – and significantly more than white Americans – were forced to tap their savings to make ends meet. More than twice as many Black 401(k) plan participants (12% vs. 5%) borrowed money from their retirement accounts. Almost twice as many Black Americans (18% vs. 10%) dip...

Consumers Split On Proactive Advice From Their Financial Institutions

2021-02-23 15:00:00  |  advice banking 

... customers said they would: 41% share online retail purchases 37% share geo location details 36% share airline programs information 36% share credit card information Source: NTT DATA...

American Consumers Turn to Stock Market amid Pandemic Restrictions and Stimulus

2021-02-09  |  investing 

...  at home, routine transportation, education, and medical) fell −4.1 ppts in Q4 2020 compared to Q2. Consumers shifted their spending, in large part, to discretionary products (+3.8 ppts)—including electronics and, especially, apparel. Political stability and climate change climbed on the list of US consumers' top concerns over the next 6 months: In the aftermath of a highly contentious election, 9% of consumers in Q4 2020 named political stability their top worry for the next 6 months, up from just 3% in Q2. 5% of consumers in Q4 named global warming their top worry. Eclipsed...

Texting Is the Best Way for Businesses to Reach Consumers Quickly

2021-02-09  |  communication 

... ed, consumers are turning to their phones instead. Sixty-four percent of consumers are spending more time on their personal cell phones every day, and of those, 26% are spending more than four additional hours a day on their devices. And the attachment starts early in the day – 67% of consumers check their phones within 5 minutes of waking up in the morning and 34% check them immediately, a 62% increase from last year. We can attribute this changing behavior to COVID-19 and the many other crises that 2020 brought. More than ever before, consumers felt the need to read the latest news and che...

Affordability Surprises First-Time Homebuyers

2021-02-03 09:30:30  |  housing economy 

... ome buyers were able to save for a home in less than three years, mostly by setting aside a portion of their paycheck each month (50%), cutting out discretionary spending (33%), and saving lump sum money like tax refunds (32%). Plus, help from family could get you there: 52% of Americans who bought their first home in 2020 said they got help with their down payment from friends or family. The number one lender? Their parents. For more details, see the full report at https://www.realtor.com/research/first-time-home-buyers-housing-2021. Source: Realtor.com...

COVID-19 Delays Financial Goals

2021-02-02 13:00:00  |  pandemic retirement 

... lennial, that is. Twenty-five percent of millennial couples surveyed admit to engaging in excessive or frivolous spending behavior over the course of the year, further contributing to their financial setbacks. "Aligning on a set of goals—especially around sensitive subjects like money— can be challenging when people have differing priorities and perceptions, but the pandemic has made many of these conversations unavoidable for couples and families who have been impacted with job loss or reduced earnings," said Kinane. "Couples can use today's financial challenges as a catalyst to discus...

Digital Banks Should Focus on Growing Share of Banking

2021-02-01 14:00:00  |  banking 

... opulation owns multiple accounts. For many, budgeting is a key factor, with 46% opting to leverage their accounts to separate funds for everyday spending. Once digital banks have homed in on their target consumer, the research showed there are a few key ways to reach them. Consumers are largely becoming aware of digital banks via digital channels, including online (40%) and via social (34%). Though digital banks are still employing traditional advertising channels like billboards and magazines, these channels have been found to be among the least effective. Source: MetaBank N.A....

One-Third of American Workers Don’t Understand the Benefits They Selected During Open Enrollment

2021-01-29 09:30:30  |  benefits workplace 

... to enhance the capabilities of this powerful tool to help Americans make informed benefits decisions and manage their income across competing health, savings and spending demands.” Source: Voya Financial...

Rewarding Card Spending with Stock Ownership Drives Greater Lifetime Value

2021-01-26 12:02:00  |  credit stock ownership 

... er 13,000 US consumers in fractional stock rewards when they spent at more than 80 brands. Once rewarded in stock by a brand, the average Bumped user showed a 43 percent increase in monthly spending, with a 1.5x increase in monthly visits to brands that rewarded them in stock when they purchased. The average reward-spend-ROI across all 80 brands was 23x. Customer Lifetime Value is nuanced and personalized to every brand, Bumped creates a Lifetime Value by looking at 2+ years of consumer transaction history, calculating a pre-stock reward value, and comparing it against the same calculation ...

Online Car-buying Drives Consumer Satisfaction

2021-01-25 09:21:00  |  transportation automation 

...  retail process online resulting in consumer satisfaction hitting an all-time high, according to the new Digitization of End-to-End Retailing (DoEER) study by Cox Automotive. With buyers spending less time at dealerships and benefitting from more efficient, digital retailing processes, those who were "highly satisfied" with the overall shopping experience reached 72%, up from 60% in 2019. The average vehicle buyer now visits only 2 dealerships in the vehicle buying process, down from 2.7 in 2016. "According to our data, car buyers have never been happier," notes Cox Automotive Vice Presi...

Auto Sales to Jump in 2021

2021-01-21 14:00:00  |  transportation spending 

... esources have been pushed into new car purchases for now, but people have been cooped up for nearly a year. They might choose to shift their spending to experiences rather than goods, which could be a threat to car purchases." Source: Edmunds.com ...

eMoney Rolls Out Financial Planning App

2021-01-15  |  financial planning apps advice 

... he app motivates the participant to make incremental improvements by accessing basic financial pillars and rules of thumb, spending challenges, and relevant financial literacy topics. “It’s our goal at eMoney to increase access to personalized financial planning experiences and provide a full spectrum of planning solutions to our clients,” said Chad Porche, VP of product innovation at eMoney. “Incentive is a valuable app for those who are looking to get started and stay on track with their finances, and it enables our advisors to service this broad and diverse audience in a scalable...

Vaccine Deployment To Accelerate Economic Growth

2021-01-15  |  economy 

... ontinued. "We believe the Fed's policy of tolerating a modest overshoot of its long-term inflation target is likely to be tested." "Our latest forecast projects that the continued waning of pent-up demand from last year's delayed spring homebuying season, coupled with a modest rise in interest rates, will likely slow the pace of housing, measured both by the volume of mortgages refinanced and by the pace of home sales. However, in our view, a modest slowdown in the sales pace is unlikely to prevent year-end 2021 home sales from being higher than 2020," Duncan concluded. Source: Fannie Mae...

One-Fourth of U.S. Households Plan To Cut Cable In 2021

2021-01-14 20:00:00  |  spending entertainment 

... e times more likely to prefer free or low-cost streaming TV with ads, over streaming services with higher monthly subscription fees with no ads (72 percent versus 14 percent). Source: The Trade Desk...

Over Half of Americans Used Retirement Savings During Pandemic

2021-01-14 10:00:00  |  retirement spending 

... 66%) of workers LOVE working from home, with only 6% expressing dislike of the home office experience. Source: Kiplingers/Personal Capital...

Most Americans Plan Post-Vaccination Splurge

2021-01-13 15:00:00  |  pandemic spending 

... ns are thriving financially, having benefited from staying at home, reducing their spending and paying down debts while maintaining their jobs and their incomes. Millions of others, however, have been devastated financially in the wake of the COVID-19 pandemic and are struggling just to keep the lights on and food on the table. "Hope is an incredibly powerful thing, and the fact that it's beginning to rise after the year we've all just been through is unquestionably a good thing," said LendingTree's Chief Credit Analyst, Matt Schulz. "However, that doesn't change the fact that the economy is ...

Consumers Expect Higher Medium Term Inflation and Home Price Growth

2021-01-13 14:00:00  |  consumer expectations housing inflation 

... esentative, internet-based survey of a rotating panel of approximately 1,300 household heads. Respondents participate in the panel for up to 12 months, with a roughly equal number rotating in and out of the panel each month. Unlike comparable surveys based on repeated cross-sections with a different set of respondents in each wave, our panel allows us to observe the changes in expectations and behavior of the same individuals over time. Source: Federal Reserve Bank of New York...

Global Consumer Confidence Improved in Fourth Quarter

2021-01-13  |  global confidence 

...  have reordered spending priorities, as housebound consumers limit expenses on vacations and out-of-home entertainment. Increasingly, they are also economizing on utilities, groceries, and other basics that support life at home.” Confidence improved across all regions as fiscal support measures shored up personal finances and health and economic concerns eased. But regional disparities reveal the continued unpredictability of pandemic impacts worldwide: Europe: The lack of improvement in sentiment about the jobs outlook was the primary factor behind the disappointing increase in confiden...

Pandemic Bolsters Financial Acumen

2021-01-12  |  debt credit cards 

... ncome Of those who lost income, 94.6 percent cut their spending by at least 25 percent, while only 5 percent say they are still spending just as much as they did pre-pandemic. Almost 30 percent admit to finally sticking to a budget, even though they had made a budget in the past and did not stick with it Approximately 45 percent of respondents feel that President-Elect Biden will be good for their finances Source: Debt.com...

Most Americans Reporting Greater Financial Confidence Than A Year Ago

2021-01-11 18:00:00  |  pandemic spending 

... esult of the pandemic, with 31% saying they felt they had become significantly more financially aware in 2020, compared to just 22% of all respondents. With consumer spending habits changing because of the pandemic, financial "faux pas"—in other words, money missteps—are in decline, compared to last year. Overall, 50% of respondents admitted to committing some kind of financial "faux pas," a 4% decline from the previous year. One of the only rises in "faux pas" is a 3% year-over-year uptick in those who say they're paying for subscription services they don't use—from 22% last year to ...

Home Prices Up 13%, Pending Sales Rise 38%

2021-01-10 08:24:41  |  housing 

... more people." Source: Redfin...

Majority of Americans Plan to Spend Stimulus Check on Household Bills

2021-01-08 12:05:00  |  spending 

... ernet              33% will use the money to pay for Rent 32% will use the money to pay for their Mortgage 32% will use the money to pay for their Mobile Phone Source: Doxo ...

Consumers Opting for Larger Vehicles During Pandemic

2021-01-05  |  spending automotive 

... ly would fit the bill as new-car shoppers turning their focus on the used car market thanks to a good supply of near-new, off-lease vehicles hitting the market," said Caldwell. Source: Edmunds ...

COVID-19 Impacting Short Term Retirement Planning

2021-01-04  |  pandemic retirement consumer confidence 

... help improve their financial health, such as: spending less (35%) saving more (29%) paying down debt (25%) Looking to 2021, consumers identify what’s most important and where they need help Poised with caution and maintaining a positive outlook toward the coming months, workers and retirees call attention to what they feel is most important in life, notably: health (56%) financial security (49%) having a close-knit family (35%) Principal conducts periodic “pulse” surveys with customers, financial professionals, and consultants to gain their insigh...

Homeownership Increasingly Unaffordable in U.S.

2020-12-31  |  housing 

... ncome of $64,447, based on a $100,000 loan and monthly expenses not exceeding the 28 percent barrier — meaning households would not be spending more than 28 percent of their income on mortgage payments, property taxes and insurance. That required income is more than the $64,447 average wage nationwide based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide unaffordable for an average household with two wage earners. Source: ATTOM Data Solutions press release ...

U.S. Retail Sales Grew 3.0% This Holiday Season

2020-12-26  |  holiday retail sales 

...  often. In addition, though Black Friday was down (-16.1%*), Thanksgiving weekend through Cyber Monday remained a key time for shoppers, with Black Friday being the top spending day of the 2020 holiday season. Source: Mastercard SpendingPulse: U.S. Retail Sales* Grew 3.0% This Holiday Season ...

Majority of Americans Prioritize Mental Health and Well-Being Over Material Possessions

2020-12-17 09:26:29  |  financial wellness retirement 

...  the better: Becoming More of Saver than a Spender: Post-COVID-19, a significant amount (69%) of Americans agree that they are more focused on saving rather than spending. Finding Greater Work-Life Balance: As many individuals continue to work from home, more are seeking opportunities to “make the most of it” as more than half (60%) of working Americans say they have more work-life balance than prior to COVID-19, while just over half (59%) have noted becoming more healthy through diet or exercise. Importance of Emergency Savings: With COVID-19 causing unprecedented economic di...

Consumers’ Spending Expectations Rise Despite Flat Income and Earning Expectations

2020-12-14  |  income spending credit 

...  also available by age, geography, income, education, and numeracy.  The SCE is a nationally representative, internet-based survey of a rotating panel of approximately 1,300 household heads. Respondents participate in the panel for up to 12 months, with a roughly equal number rotating in and out of the panel each month. Unlike comparable surveys based on repeated cross-sections with a different set of respondents in each wave, our panel allows us to observe the changes in expectations and behavior of the same individuals over time. Source: New York Federal Reserve...

Total Household Debt Increased in Q3 2020

2020-11-17 09:26:29  |  debt mortgages 

...  the history of the data (since 1999). The decline in card balances reflects continued weak consumer spending amidst the COVID-19 pandemic, as well as households paying down existing credit card debt. Auto and student loan balances both increased slightly in the third quarter, by $17 billion and $9 billion, respectively. Auto loan originations, which includes both loans and leases, reached a series high in Q3. In total, non-housing balances (including credit card, auto loan, student loan, and other debts) saw a $15 billion increase. Source: New York Federal Reserve...

Consumer Expectations about Household Finances Weaken

2020-11-09  |  inflation financial situation 

... and 9.1% in October, respectively. ...

Workplace Benefits Under Scrutiny

2020-09-16  |  workplace 

...  (53%) plan to make changes to their benefits coverages. When asked which employee benefits would help better manage their current needs, health savings accounts (HSAs) or flexible spending accounts (FSAs) were mentioned by nearly 4-in-10 surveyed employees (38%) — followed by 35% of employees selecting supplemental health benefits like hospital indemnity insurance, critical illness insurance, or short-term and long-term disability income insurance....

Consumers focus on saving

2020-09-02 09:26:29  |  consumers 

...  With many consumers staying close to home, around 4 in 10 consumers reported spending more on groceries. A quarter are getting food delivered more frequently, and 22% have increased spending on books, games, apps and subscriptions during the same time frame. Over forty percent (44%) of consumers have also increased their online shopping habits overall. But while many are changing what they purchase and how, the survey also reveals that 4 in 10 of consumers are making fewer impulse purchases, highlighting that many are being more deliberate about what they purchase....

Total Household Debt Declines For First Time Since 2014

2020-08-06  |  debt mortgages 

... quarter of 2020. This marks the first decline since the second quarter of 2014 and is the largest decline since the second quarter of 2013. Reflecting the sharp decline in overall consumer spending due to the COVID-19 pandemic and related social distancing orders, credit card balances fell sharply by $76 billion in the second quarter. This was the steepest decline in card balances seen in the history of the data. Auto and student loan balances were roughly flat in the second quarter. In total, non-housing balances (including credit card, auto loan, student loan, and other debts) saw the lar...


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