American Express Spending & Saving Tracker 2014 Outlook and Spending Intentions

Transcription

1 American Express Spending & Saving Tracker Outlook and Spending Intentions Prepared by: January 22,

2 Research Method The American Express Spending & Saving Tracker research was completed among a random sample of 1,502 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 January 2 and 5,. Overall the results have a margin of error of ± 2.5 percentage points at the 95% level of confidence. Page 2

3 More Consumers are Optimistic about their Finances Going into For the second year in a row, consumers indicate feeling optimistic (40% vs. 39% in ), followed distantly by those feeling frugal (24% vs. 21% in ). And, findings indicate this year s savers are planning to save more money than years past: $12,464 vs. $10,893 last year, on average. Financial State of Mind Average Savings Goal Optimistic 40% 39% Frugal Frightened 24% 21% 12% 14% Savings Goal $12,464 Pessimistic 11% 12% Unconcerned Indulgent 8% 10% 3% 2% Savings Goal $10,893 Other 2% 2% Q. If you had to choose one word to describe your financial state of mind for, which of the following would it be? Total respondents Q. Thinking about your savings goal - what is the total amount of money you would like to save in? Total have a savings strategy Page 3

4 Significantly More Consumers Started the Year with a New Year s Resolution than Last Year, with Saving More Money at the Top Twenty-seven percent of consumers say they set a New Year s resolution in up from 19% in. More than one-half with a New Year s Resolution will strive to save more money in (54%) up from 33% in. New Year s Resolutions Set New Year s Resolution for Save more money 33% 54% 27% Eat healthy/healthier/diet Exercise more 53% 40% 53% 39% Lose weight 46% 38% 19% Set a budget/spend within budget Quit smoking Other 38% 23% 17% 16% 11% 10% Q. Will you set a New Year's resolution for? Total respondents Q. What will your New Year's resolution(s) be for? Total set a New Year s Resolution Page 4

5 Most Consumers Have Set Financial Goals for Reducing Debt and Finding a Job are the Top Goals Overall, 85% of consumers will set financial goals for the year (87% in ), with some of the top goals to include paying off or reducing debt (17%, on par with ), finding a job or better job (16% vs. 19% in ) or saving a certain percentage of their household income (13% vs. 15% in ). Top Financial Goals in Significantly reduce or pay off my debt before the end of Find job/find a better job Only buy what I can afford/to spend what I have Save a percentage of my household income each month Better manage my finances, such as a monthly budget that I will stick to Save enough money to travel in Save enough money to pay for education for me or my family Be in a position to buy or sell real estate Other 17% 17% 16% 19% 13% 10% 13% 15% 11% 11% 7% 8% 3% 2% 3% 3% 3% 3% 85% will Set a Financial Goal in vs. 87% in Q. Next, please complete the following sentence: In, my top financial goal is...total respondents Page 5

6 Savings from Primary Income Top Way to Reach Goal To reach savings goals, consumers plan to save from their primary income (53% vs. 51% in ), utilize a tax return (26%, on par with ), pared back on little luxuries (21% vs. 23% in ), or sell personal items or possessions (18%, on par with ). A hopeful 19% will rely on a winning lotto ticket this year, down from 21% in. Plans to Reach Savings Goal Save from my primary income Tax return Pare back on little luxuries (like morning lattes and manicures) Hope to win the lottery Selling items and possessions (Craigslist, ebay, Classifieds) Monthly deductions from my paycheck A second job All or a portion of my bonus Income from rental properties I own 26% 26% 21% 23% 19% 21% 18% 18% 18% 19% 13% 13% 10% 8% 5% 4% 53% 51% Q. Which of the following describes how you plan to reach your savings goal in? BASE: Total have a savings strategy Page 6

7 Discretionary Spending Continues a Steady Climb in Two-thirds (68%) of consumers are planning to spend more or the same on non-essential items in, compared to (63%) and 2012 (56%). Overall Non-Essential Spending Expectations in vs. More Same 22% 20% 43% 46% More or the same: 68% vs. 63% in (and 56% in 2012) Less 22% 26% Not sure 10% 11% Q.. Thinking about all of your discretionary (non-essential items)- Do you expect to spend more, less, or the same in, compared to? Total respondents Page 7

8 Many Expect to Spend More on Everyday Shopping Areas One-third of consumers expect to spend more on home improvements (34%) and groceries (32%), followed by a similar proportion expecting to spend more on gasoline and fashion including jewelry (30% each). Areas Expect to Spend More in than Home (indoor, outdoor, remodeling) 34% 31% Groceries Gasoline N/A N/A 32% 30% Fashion - including jewelry (clothing, accessories, and jewelry) 30% 28% Q. In the following areas, will you be spending more, less, same in, compared to? More Illustrated above. Total respondents Page 8

9 Big Ticket Purchases Expected in vs. On Average, Home Buyers Expect to Spend More and Car Buyers Less Big ticket purchases considered in about a quarter (24% - down from 26% in ) expect to purchase a car, and 8% a house. The findings indicate home buyers expect to spend $179,140 on average,while car buyers expect to spend $18,946. Big Ticket Purchases Expected Average Expect to Spend Car 24% 26% $18,946 $20,287 House 8% 8% $179,140 $123,737 Q. Which of the following, if any, big ticket items are you planning on purchasing in? Total respondents Q. How much do you expect to spend on your big ticket purchases in? Total expect to spend on [insert item] Page 9

10 Most are Spending More or the Same on Grooming, Entertainment, and Dining Out Most consumers indicate spending more or the same in indulging on themselves: on grooming (83%, up from 80%), on entertainment (70%, up from 67%), and dining out (69%, up from 66%). Areas Expect to Spend More or the Same in, compared to Grooming/hygiene (hairstyling, manicure, pedicure, etc.) 83% 80% Entertainment i.e. movies, concerts, activities 70% 67% Dining out 69% 66% Q. In the following areas, will you be spending more, lessor same in, compared to? More or Same illustrated. Total respondents Page 10

11 Most Consumers Intend to Travel for Leisure in and Many will Spend More and Fly More in Fifty-seven percent of consumers have leisure travel plans in (up from 55% in ). Among these leisure travelers, just under one-half (47%) expect to spend more on travel than in (43%) and one-third (32%) plan to spend more to fly in (29% in ). More than one-half (54%) have already planned (40%) or booked (14%) their travel for. Leisure Travel Plans in 57% Yes 55% Plans to SPEND MORE on leisure travel in compared to Will FLY MORE in than in Leisure Travel Intentions 32% 29% 47% 43% No Not sure 23% 25% 20% 20% Planned Booked Not planned yet Leisure Travel for Booked vs. Planned 14% 11% 40% 39% 46% 50% 54% planned or booked (vs. 50% in ) Q. Do you have plans to travel for leisure in? Total respondents Total who have leisure travel plans Q. Do you plan to spend more, less or the same on leisure travel in than you did in? More Illustrated above Q. Thinking about your leisure travel plans in - are you planning to fly more, less, or same as did in? More Illustrated above Q. Have you planned or booked your first leisure trip of? Page 11

12 More Travelers are Planning a Leisure Trip with their Spouse and More Parents are Leaving their Children at Home More than six in ten (63% - up from 59% in ) are planning a leisure trip with their spouse/ significant other in ; and, more parents of children are planning leisure travel without their children (46% vs. 40% in ). Beach Vacation Outdoor Adventure Vacation Type of Leisure Travel Plans Domestic Roadtrip International Cruise Spa Vacation Ski Vacation Other 7% 7% 6% 8% 5% 6% 25% 21% 22% 23% 18% 19% 51% 51% 47% 43% 40% 39% Leisure Travel Plans with Spouse / Significant Other 63% 59% Parents of children: Leisure Travel Plans without Their Children 40% 46% Q. In, with whom do you plan to travel for leisure? Total who have leisure travel plans Q. What type of leisure travel are you most likely to take in? Total who have leisure travel plans Q. Are you planning to travel for leisure in without your children? Total who have leisure travel plans and have children Page 12

13 Most will Use their Reward Points in More than one-half (52%) with rewards points and airline miles will use them in. Plans to Use Rewards Points and Airline Miles in Yes 52% No 48% Q. Do you plan to use your rewards points and airlines miles in? Total with rewards points Page 13