2013 Outlook and Spending Intentions

Transcription

1 American Express Spending & Saving Tracker Outlook and Spending Intentions January 8, Prepared by:

2 Research Method The American Express Spending & Saving Tracker research was completed among a random sample of 1,508 adults, including the general U.S. population, as well as an Affluent demographic, defined as having a minimum annual household income of $100,000. Interviewing was conducted by Ebiquity, formerly Echo Research, between December 18 and December 20,. Overall the results have a margin of error of ± 2.5 percentage points at the 95% level of confidence (or ± 4.0 percentage points among Affluents). Page 2

3 More Consumers are Optimistic about their Finances Going into and Plan to Spend More On Travel, Clothing, and Décor Many consumers among the general population describe their financial state of mind going into to be optimistic (39% vs. 35% in ). And about one in four plan to spend more on clothing and accessories (28%), travel/vacations and home décor (26% and 24%, respectively). FINANCIAL STATE OF MIND TOP AREAS CONSUMERS PLAN TO SPEND MORE ON IN Optimistic Frugal Frightened Pessimistic Unconcerned Indulgent Other 39% 35% 21% 2 17% 1 10% 6% 3% Clothing/ accessories Travel/vacations Home décor Health-fitness Dining out Entertainment 28% 23% 26% 2 24% 23% 2 * Abbreviated text above - Clothing for self, clothing for family/ others, accessories including jewelry - Indoor home improvements/décor - Entertainment i.e. movies, concerts, activities If you had to choose one word to describe your financial state of mind for, which of the following would it be? Total respondents (may not total 100% due to rounding) Thinking about your spending in, compared to - will you be spending more, less, or the same on *(CATEGORY)*? Total respondents Top areas consumers intend to spend more are shown in chart (19 categories were rated more, less, same Page 3

4 Big Ticket Purchase Plans Including a Car, Major Household Appliance, Significant Home Renovations, a House More than one in four (26%) consumers indicate plans to buy a car for an average of $20,287. Twenty nine percent of Affluents have plans to buy a car in and 23% a major household appliance for an average of $35,478 and $2,634, respectively. Average Spend Average Spend Car 26% $20,287 Car 29% $35,478 Major Household appliance (e.g., refrigerator, stove) 17% $1,561 Major Household appliance (e.g., refrigerator, stove) 23% $2,634 Undergo significant home renovations $7,701 Undergo significant home renovations 15% $12,881 House 8% $123,737 House 9% * 58% responded none of the above or not sure 51% responded none of the above or not sure * Sample size too small How much do you expect to spend on your big ticket purchases in? Total respondents New question asked for outlook Page 4

5 The Fiscal Cliff Loomed and Consumers Were Well Aware As previously mentioned, consumers reported an uptick (when surveyed at the end of December) in optimism and planned spending increases; this is despite the so called fiscal cliff that was looming. About three in four (74%) consumers were aware of the fiscal cliff, and 59% expected the outcome to affect them personally. Yes, aware of fiscal cliff 74% Yes, aware of fiscal cliff 87% Yes, expect outcome of the "Fiscal Cliff"will affect me personally 59% Yes, expect outcome of the "Fiscal Cliff"will affect me personally 64% Are you aware of the impending issue of sharply reduced federal spending and increased taxes, commonly referred to as the fiscal cliff? Total respondents [Respondent had the option to answer yes, no, not sure; illustrated above is % yes] Do you believe the outcome of the so called Fiscal Cliff will affect you personally? Among those aware of fiscal cliff [Respondent had the option to answer yes, no, not sure; illustrated above is % yes] Page 5

6 Three Most Important Intentions in : Saving More Money, Spending More time with Family/Friends, and Exercise More Ranked at the top for most important intentions by more than one half of consumers is save more money (57%) and spend more time with friends/family (51%). Ranked third is to exercise more (4). Most Important Intentions Save more money Spend more time with family/friends Exercise more 57% 58% 51% % Save more money Spend more time with family/friends Exercise more 47% 48% 47% 46% 41% 44% Lose weight Improve skills with favorite hobby Quit smoking Retrain for new career 35% 37% 21% 21% 2 17% Lose weight Improve skills with favorite hobby Quit smoking Retrain for new career 29% 36% 15% 1 10% Next, rate the following issues on how important (on a 4-point importance scale) they are to your intentions. Very Important Summary. Total respondents Page 6

7 A Shift in Financial Goal Priorities Find a Job/ Better Job is at the Top in, while Reduce Debt Now Follows Second For, more consumers say finding a job or a better job ( vs. in ) is their top financial goal, while last year the top spot went to significantly reducing or paying off debt. Top Financial Goals Find job/find a better job Significantly reduce or pay off my debt before the end of Save a percentage of my household income each month Better manage my finances, such as a monthly budget that I will stick to Only buy what I can afford/to spend what I have Save enough money to travel in Be in a position to buy or sell real estate Save enough money to pay for education for me or my family Other goal No financial goal 17% 15% 10% 1 8% 6% 3% 4% 3% 3% Save a percentage of my household income each month Significantly reduce or pay off my debt before the end of Better manage my finances, such as a monthly budget that I will stick to Find job/find a better job Only buy what I can afford/to spend what I have Save enough money to travel in Be in a position to buy or sell real estate Save enough money to pay for education for me or my family Other goal No financial goal 16% 18% 21% 10% 9% 8% 8% 10% 7% 7% 5% 4% 4% 5% 4% 4% 16% 1 Next, please complete the following sentence: In, my top financial goal is? Total respondents Page 7

8 Consumers Raised the Bar, Setting a Higher Savings Goal for For, the majority of consumers have a savings strategy and plan to save $10,893, on average (up from $7,633 set out in ). Consumers fell slightly short of their goal on average, they saved $5, % (up from 8 in ) of consumers have a savings strategy for 96% (up from 90% in ) of consumers have a savings strategy for Average Savings Goal in $10,893 Average Savings Goal in $22,660 Average Savings Goal in $7,633 Average Savings Goal in $14,445 Average Saved in $5,906 Average Saved in $18,611 Savings strategy: in total (or 4% Affluents) responded they don t expect to save in. Total respondents Thinking about your savings goal - what is the total amount of money you would like to save in? Total have a savings strategy How much money did you save in? Total who set a savings goal last year Page 8

9 Most Consumers Plan to Reach Their Savings Goal Through their Primary Income More than one half (51%) plan to reach their goal by saving their primary income, followed by 26% who will save their tax return, and 23% paring pack on little luxuries. Method of Reaching Savings Goal Savings from my primary income Tax return Pare back on little luxuries Hope to win the lottery Monthly paycheck deductions Selling items and possessions A second job All or a portion of my bonus Rental property (own) income Some other way 26% 31% 23% 23% 21% 18% 20% 8% 10% 4% 4% 6% 7% 51% 57% Savings from my primary income Tax return Pare back on little luxuries Monthly paycheck deductions All or a portion of my bonus Selling items and possessions Hope to win the lottery A second job Rental property (own) income Some other way 25% 26% 23% 25% 2 24% 16% 15% 16% 17% 8% 7% 7% 7% 7% 7% 59% 63% * Abbreviated text above - Pare back on little luxuries (like morning lattes and manicures) - Selling items and possessions (Craigslist, ebay, Classifieds) Which of the following describes how you plan to reach your savings goal in? Total with a savings strategy Page 9

10 Consumer Divide is Evident on Financial State of Mind, Although Optimism is Up from Last Year While consumers are more optimistic this year (39% - up from 35% in ), consumers are still split when it comes to their financial state of mind. That is, over half say they are optimistic, unconcerned or indulgent, while 47% are frugal, frightened, or pessimistic. Financial State of Mind Optimistic Unconcerned Indulgent 10% 6% 39% 35% 51% (vs. 44% in ) Optimistic Unconcerned Indulgent 8% 3% 3% 4 38% 56% (vs. 48% in ) Frugal Frightened 21% 2 17% 47% (vs. 53% in ) Frugal Frightened 20% 25% 9% 9% 41% (vs. 49% in ) Pessimistic Other 1 3% Pessimistic Other 1 15% 3% If you had to choose one word to describe your financial state of mind for, which of the following would it be? Total respondents Page 10

11 Most Consumers Have Leisure Travel Plans in Consistent with last year, more than one half (55% vs. 54% in ) have leisure travel plans in. Leisure Travel Intentions Yes 55% 54% Yes 77% 77% No 25% 28% No 1 Not sure 20% 18% Not sure 1 Do you have plans to travel for leisure in? Total respondents Page 11

12 Spending More or the Same on Leisure Travel in is Up from Last Year The majority of leisure travelers plan to spend more or the same on their travel this year (87% - up from 81% in ). Spending Intentions on Leisure Travel 87% (up from 81% in ) of consumers with leisure travel plans expect to spend more or the same in vs. 87% (vs. from 86% in ) of consumers with leisure travel plans expect to spend more or the same in vs. Spend MORE in than 43% 43% Spend MORE in than 4 41% Spend the SAME in than 44% 38% Spend the SAME in than 45% 45% Spend LESS in than Spend LESS in than Do you plan to spend more, less or the same on leisure travel in than you did in? Total who plan leisure travel in Page 12

13 Most Indicate At Least One Leisure Trip will Include Flying In thinking about their leisure travel plans three in four consumers with travel plans say their plans will include flying. Leisure Travel Plans to Fly 74% (vs. 77% in ) of consumers with leisure travel plans plan to fly in 89% (vs. 88% in ) of consumers with leisure travel plans plan to fly in Will fly MORE in than in 29% 27% Will fly MORE in than in 27% 30% Will fly JUST AS OFTEN in as in 34% 34% Will fly JUST AS OFTEN in as in 47% 44% Will fly LESS in than in 16% Will fly LESS in than in 15% DO NOT FLY when traveling for vacation 26% 23% DO NOT FLY when traveling for vacation 1 Thinking about your leisure travel plans in - are you planning to fly more, less, or just as often as you did in? Total who plan leisure travel in Page 13

14 Trips Aren t as Premeditated as Last Year One half of leisure travelers have not planned or booked their trips. Leisure Trips that Have Been Booked or Planned 50% (vs. 57% in ) of consumers with leisure travel plans have planned or booked their leisure travel for 60% (vs. 58% in ) of consumers with leisure travel plans have planned or booked their leisure travel for Have PLANNED my leisure travel for 39% 40% Have PLANNED my leisure travel for 38% 36% Have BOOKED my leisure travel for 17% Have BOOKED my leisure travel for 2 2 Intend to travel in but have NOT planned or booked yet 43% 50% Intend to travel in but have NOT planned or booked yet 40% 4 Have you planned or booked your first leisure trip of? Total who plan leisure travel in Page 14

15 Spending More or the Same on Digital Items in is Expected There is an increase in consumers spending more or the same on digital items in, including televisions, tablet computers, video game systems/games cameras/camcorders, and portable media players. Spending More or the Same On Digital Items TV/3D TV 49% 44% TV/3D TV 56% 5 Tablet computer or e-book readers 48% 4 Tablet computer or e-book readers 54% 50% Video game systems and games 45% 39% Video game systems and games 45% 44% Cameras or camcorders 45% 41% Cameras or camcorders 50% 48% Portable media players 44% 38% Portable media players 49% 45% * Examples shown to respondent - Tablet computer or e-book readers, i.e., ipad, ereader, Kindle, Nook, etc. - Portable media players, i.e. ipods or other MP3 players Thinking about your spending in, compared to - will you be spending more, less, or the same on *(CATEGORY)*? Total respondents [Each category was rated more, less, same. Shown above is the percent who rated each category more or the same] Page 15

16 Smartphone Users Use their Device to Manage Finances Almost one half (48%) of consumers say they own a smartphone. Consumers indicate using their smartphone to manage their finances such as, mobile banking (41%), checking credit card balances (28%), shopping/making purchases (28%), paying bills (27%), and managing investments (). Smartphone Usage 48% say they own a smartphone How consumers use their smartphone (other than calls) Text Message Check and Send Take and share photos Visit Websites Use social media apps Play Games Mobile Banking Check Credit Card balances Shop/Make Purchases Pay Bills Read books Manage Investments Other % 63% 55% 5 41% 28% 28% 27% 63% say they own a smartphone How consumers use their smartphone (other than calls) Text Message Check and Send Take and share photos Visit Websites Play Games Use social media apps Mobile Banking Check Credit Card balances Shop/Make Purchases Pay Bills Manage Investments Read books Other 1% 83% 75% 68% 65% 50% 48% 39% 3 29% 26% Social Media aps: Twitter, Facebook, Foursquare, etc.) Do you own a smartphone that you personally use? Total respondents Other than making phone calls, which of the following would you say you do with your Smartphone on a monthly basis? Total who own a smartphone Page 16