Consumers Are Concerned Over Cost of Living
According to a new report by Bread Financial, a tech-forward financial services company that provides payment solutions, consumers are planning for a tough road ahead as cost of living continues to rise. The survey, which polled more than 1,700 U.S. consumers, found that more than half of consumers believe that their financial goals will be harder to meet in 2024 than in 2023 — 60 percent of consumers also said they expect to spend more than they budgeted for this year, with 47 percent of consumers citing inflation as the main source of missing their financial goals.
Notably, the findings mirror conclusions found in other recent reports by WWD, including data from Credit Karma, which revealed an overwhelming 96 percent of American consumers admitting concern for the current state of the economy.
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The authors of Bread Financial’s report said their research found consumers in various cohorts are focusing on different priorities to thwart these issues. For almost half (48 percent) of Baby Boomers this means cutting back on consumer spending with 39 percent planning to pay down debt. Similarly, a recent report that found that Millennials and Gen Z’s top financial goals are to grow savings, pay off debt, stick to a budget, build an emergency fund and plan to invest more or grow investments.
Meanwhile, Bread Financial’s report states that 40 percent of Millennials and 35 percent of Generation Z are focusing on improving their credit score, with 26 percent of Gen Z and 40 percent of Millennials planning on using a financial planning app such as Credit Karma. This ties into the 29 percent of Millennials and 30 percent of Generation Z who noted saving for homes and cars as a top priority.
Some strategies to cut down costs in 2024 include planning on setting boundaries on ordering takeout food (41 percent of consumer respondents) and plans to spend less on online shopping (35 percent).
At the same time, 70 percent of people are considering a side hustle to help combat rising financial costs, with 44 percent of Gen Z considering food delivery services like Doordash or Grubhub and 39 percent of Millennials are looking into selling products on online marketplaces such as Etsy.
Another major strategy is taking advantage of online technology tools. Forty-eight percent of Millennials and 41 percent of Gen Z will download a cashback, coupon app and browser extension such as Rakuten, Honey or Ibotta.
“The new year is a perfect time for consumers to take stock of their financial goals and plan for the next year,” said Nick Antonelli, senior vice president and chief marketing officer at Bread Financial. “This research shows the importance of focusing on financial wellness and prioritizing a strong foundation in the coming year.”
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