Sign In
Free Newsletter
Provident Bank survey examines consumer spending amid rising costs
Matthew Fazelpoor//March 29, 2023
In a recent Provident Bank national survey on consumer spending habits, respondents were asked what changes they had made in their own spending and travel behaviors to save money. The most common responses were 1) going out to eat less 2) stricter budgeting and 3) buying generic items instead of brand names. - PROVIDENT BANK
In a recent Provident Bank national survey on consumer spending habits, respondents were asked what changes they had made in their own spending and travel behaviors to save money. The most common responses were 1) going out to eat less 2) stricter budgeting and 3) buying generic items instead of brand names. - PROVIDENT BANK
Provident Bank survey examines consumer spending amid rising costs
Matthew Fazelpoor//March 29, 2023
Iselin-based Provident Bank is out this week with the results of its national 2023 Consumer Spending Survey, which takes a closer look at how consumers are adjusting to rising costs across the board.
One of the toplines revealed in the survey, which polled 1,000 adults throughout the country, is that 73% of respondents are cutting back on non-essential purchases and travel due to the higher costs of staple expenses, like groceries, rent and utilities.
Some of that cutback on non-essential spending includes canceling subscriptions and entertainment streaming services, as well as reducing the frequency of going out for dinner or getting takeout. Other respondents mentioned cutting back on alcohol, quitting smoking, buying generic over name-brand products and turning down the thermostat as ways to offset inflationary price increases.
Seventy-eight percent of respondents have either reduced contributions or stopped contributing completely to their savings and retirements accounts. And a whopping 48% revealed they have less than $1,000 in a personal savings account, while 20% have no savings at all.
“Many individuals in the U.S. have been impacted by inflation, and while we’ve seen they are making conscious efforts to spend less, it’s important for bankers to have conversations with their customers on how they can best help them to manage their finances during these challenging economic times,” said Anthony Labozzetta, president and CEO, Provident Bank, in a March 27 press release announcing the survey results.
Provident Bank also noted an alarming cost of living trend compared with a survey it conducted last June, which found 53% of respondents spend between $100-$500 or more per month on groceries. That number has jumped 10 points to 63% in this new survey.
Another 78% of respondents say they are not planning on purchasing a new home in the next 12 months while 63% are not planning to buy a car in the next year.
Despite many of the rather dim findings throughout the survey, there does seem to be some optimism moving forward, though, as 57% of respondents believe their personal finances will improve over the next year.
=
