Half of consumers report their biggest spending
increase was on groceries over the last year.
TD Bank, America’s Most Convenient Bank® today announced the
findings of its annual 2024 Consumer Spending Index, revealing that
half (50%) of respondents say their spending has increased the most
on groceries over the last year and more than half (58%) say they
spend the most money on groceries in a typical month. Although
inflation has slowed, nearly one third (30%) of respondents have
been cutting back spending due to concerns about the economy and
over two in five (42%) of respondents have altered their financial
priorities over the past year. Among those whose priorities have
shifted, 27% report covering daily living expenses such as
groceries and utilities is the priority that has changed the
most.
The survey polled more than 1,500 Americans who have a credit
card to assess shifts in consumer spending habits, credit usage and
financial priorities including strategies for saving and the
importance of financial education.
Two-thirds (67%) of those surveyed revealed that some aspect of
their finances keeps them up at night, and less than one-third
(31%) are planning a major purchase in the next year. Despite these
concerns, Americans remain overwhelmingly confident in their
financial situations with 85% indicating they are confident in
their ability to manage their finances.
"The daily cost of living is rising for many Americans," said
Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank.
"Fortunately, there are useful tools available to help consumers
manage their finances and maximize card benefits, whether that's by
finding a card with cash back on groceries or by identifying a card
with low interest if you know you are going to carry a
balance."
Many Ways to Pay
Consumers value options. The majority of respondents have
multiple credit cards, with 47% of respondents reporting they hold
3 or more cards. Rewards cards continue to dominate the credit card
space with more than eight in ten consumers (83%) having one. When
it comes to choosing a new card, consumers are most enticed by the
rewards program structure (34%), attractive introductory offers
(33%), and the reputation of the card issuer or financial
institution (24%).
Debit cards also remain popular. Consumers are relatively split
between credit and debit as their primary method for making
day-to-day purchases, with 43% using a credit card and 39% using a
debit or check card tied to a checking account. The preference for
credit cards is driven by several compelling factors including
convenience (64%), the opportunity to maximize rewards (60%), and
enhanced security on purchases (46%). Only 10% of respondents
report cash as their primary spending method.
Consumers have been hesitant to embrace Buy Now Pay Later (BNPL)
options with only 28% of respondents having used BNPL installment
options. The use of BNPL is particularly popular among Millennials,
with 45% having used this service compared to just 16% of Baby
Boomers. Those who do use BNPL often cite the ability to spread out
payments for items that wouldn't otherwise fit their budget (47%)
and the appeal of low or no interest rates (23%).
Convenience Remains Key
This year’s Consumer Spending Index also highlights the balance
between digital convenience and the need for personal touch in
customer service. While online banking tools are popular, with 82%
of respondents preferring to pay their credit card bills online or
via mobile app, over half (56%) still prefer phone support for
customer service, particularly among Baby Boomers. This preference
underscores the importance of human interaction, and consumers
desire to have a touch of personalization in their banking
experiences.
Customer service quality is also a factor for 68% of consumers
when choosing a credit card, and over half (55%) say their digital
experience influences their choice. This suggests that, despite the
rise of digital tools, consumers still value the reliability and
personalized assistance that phone support provides, demonstrating
a blend of traditional and modern preferences in their financial
habits.
Mastering Money: Savings, Education, and Future Goals
As consumers navigate sticky inflation and high interest rates,
many consumers are struggling to save. In fact, only 56% of
respondents are actively saving for retirement and 20% report an
outstanding credit card balance is impacting their ability to meet
their financial goals. Today’s evolving markets and the shifting of
financial priorities in the last year has put an emphasis on
financial education. 70% of parents report actively educating their
children on the importance of building credit.
Parents are also helping their children establish credit of
their own via a few mediums, but the most popular include a secured
card (24%), loans (20%), or adding them as an authorized user on an
existing credit card (20%). This proactive approach underscores the
urgency that Americans are feeling to prepare the next generation
for financial stability.
Methodology
This online CARAVAN survey was conducted by Big Village Insights
among a sample of 1,510 U.S. adults ages 18+ that have a credit
card. This survey was conducted from June 4-11, 2024.
About Big Village Insights
Big Village Insights is a global research and analytics business
uncovering not just the ‘what’ but the ‘why’ behind customer
behavior, supporting clients' insights needs with agile tools, CX
research, branding, product innovation, data & analytics, and
more. Big Village Insights is part of Bright Mountain Media. Find
out more at https://big-village.com.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S. by assets, providing over 10 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,100
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida. In addition, TD Auto Finance, a
division of TD Bank, N.A., offers vehicle financing and dealer
commercial services. TD Bank and its subsidiaries also offer
customized private banking and wealth management services through
TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn
more, visit www.td.com/us. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Instagram at
www.instagram.com/TDBank_US/.
TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10
North American bank. The Toronto-Dominion Bank trades on the New
York and Toronto stock exchanges under the ticker symbol "TD". To
learn more, visit www.td.com/us.
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version on businesswire.com: https://www.businesswire.com/news/home/20240730372700/en/
Media: Lisa Carlson Corporate Communications Manager
lisa.carlson@td.com
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