Inflation and Rising Rates Continue to Impact Regional Consumers’ Financial Stability, WSFS Study Finds
The economic environment continues to impact consumers’ financial stability, resulting in changes to spending and saving habits. Nearly four in 10 regional residents (38%) are spending more money now compared to last year, while only 21% in the region are saving more, a WSFS Bank Money Trends study found.
By the numbers:
- Rising costs and inflation topped the list of why consumers are spending more (72%).
- 60% said they are spending more on groceries, 53% on transportation, 50% on utilities and 43% on housing than last year.
- The uptick in rates has motivated 30% of residents to reduce their credit card spending and debt, while an equal percentage are steering clear of loans altogether.
- 50% are saving less now than they did the previous year, signaling an opportunity for those who are saving to take advantage of higher interest rates.
With the economy continuing its turbulence, now is good time for consumers to re-focus on their finances and the tools available to help build savings, explore options like whether it makes more sense to use a credit card or ‘buy-now, pay-later’ products for large expenses, and more.