Inflation impacting the saving and spending habits of millions of Americans
Plus: 78% of Americans say the US will enter a recession in the next 12 months.
More than half (64%) of American adults say that inflation was a factor in changes they made to their spending or savings habits last year, according to the Finder Consumer Confidence Index.
Of all the factors that affected American saving and spending habits, inflation was by far the most influential. The second biggest factor to change the way people spend and save was the pandemic (42%), followed by political events (22%). Almost one in five (18%) Americans say they have kept their saving and spending habits consistent throughout any turmoil.
Women more worried about inflation
Nearly three-quarters (71%) of women surveyed say that inflation affected what they did with their money in the last 12 months, compared to 58% of men who say the same. One in five men (20%) say that nothing affected their financial habits, compared to 15% of women.
Inflation a major factor for Gen X
Gen X is the generation most likely to cite inflation as a reason their spending and saving habits changed at 73%, followed by 66% of Gen Y. Almost a third (32%) of boomers say they made no changes.
Inflation a concern coast to coast
Two-thirds (66%) of those in the South say they changed how they handle their finances in reaction to inflation.
Most Americans worried about their financial situation
All that said, it’s little wonder that 85% of Americans are stressed about their current financial situation, with 17% saying they’re extremely stressed and 19% saying they are very stressed.
Women more concerned about their financial situation
Women (21%) are 7 percentage points more likely than men (14%) to say that they are extremely stressed about their financial situation. Men (20%) are almost twice as likely as women (11%) to say they are not stressed at all.
Gen Y most worried about their future
Almost a quarter (24%) of Gen Y say they are extremely concerned about their financial situation, which is four times higher than the level of concern reported by boomers (6%).
One in five in the West not stressed about their finances
In typical “West Coast” fashion, one in five (20%) of those in the West say they are not stressed at all about their financial situation.
Finances getting worse for millions of Americans
More than two in five Americans (42%) said their finances had gotten worse over the last year, with just 18% saying their situation had improved.
Last year was worse for women than for men
Almost half (47%) of women surveyed say their financial situation is worse now than it was a year ago, compared to 37% of men who said the same. Conversely, over one in five men (22%) said their situation had improved, compared to just 14% of women.
More than half of Gen Xers say they’re worse off financially today than a year ago
Over half (52%) of Gen X say that their financial situation has deteriorated over the last year. Interestingly, almost a third (29%) of Gen Z say their financial status has improved over that time.
Financial woes similar across the nation
Change to financial situation is fairly similar across all regions.
Most think a recession is on the horizon
Roughly 78% of Americans say it’s likely the US will enter a recession in the next 12 months, with 43% saying it is very likely and 35% saying it is somewhat likely.
Women slightly have slightly higher recession fears
Roughly 80% of women say that the US will fall into a recession in 2023, compared to 76% of men who say the same.
Gen Z least concerned about recession in 2023
Just 65% of Gen Z think the US will experience a recession in 2023, compared to 84% of boomers.
Four in five in the West say a recession is likely
Just over four in five (81%) people in the West say a recession is on the cards in 2023, compared to 75% in the Midwest.
For all media inquiries, please contact:
Chelsea Gregori, Public Relations Specialist
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