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Regional Consumers Continue to Adapt Spending and Saving Habits, WSFS Bank’s Annual Money Trends Study Finds
Inflation and rising interest rates continue to impact financial stability of many regional consumers, causing changes to financial behavior, while
About this update from Wsfs Financial Corporation
[{"type":"text","content":"\nInflation and rising interest rates continue to impact financial stability of many regional consumers, causing changes to financial behavior, while presenting opportunities for others\n\n\n WILMINGTON, Del.--(BUSINESS WIRE)--\nNearly four in 10 regional residents (38%) are spending more money now compared to last year, while only 21% in the region are saving more, according to a Money Trends study from WSFS Bank, the primary subsidiary of WSFS Financial Corporation (Nasdaq: WSFS). Half of respondents have heard of but never used savings tools like certificates of deposit (50%), while 51% said the same about high-yield money market accounts, signaling an opportunity for consumers to use higher interest rates more to their advantage.\n\n\nRising costs and inflation topped the list of why consumers are spending more (72%), followed by paying for emergency expenses such as repairs or medical bills (27%), paying off more debt (23%) and rising interest rates on credit cards and loans (23%).\n\n\nThe study, which surveyed 1,043 Greater Philadelphia and Delaware region consumers, measured spending and saving trends and the impact of economic conditions among adults ages 18-55.\n\n\nContinued Economic Headwinds\n\n\nInflation and rising interest rates continue to have a major impact on regional consumers, with 72% spending more this year attributing it in part to rising costs and inflation.\n\n\nWhen looking at spending categories, rising costs for essentials have left consumers’ wallets stretched thinner, with consumers spending more on groceries (60%), transportation (53%), utilities (50%) and housing (43%) than last year.\n\n\n“While continued economic headwinds have impacted many consumers, there are adjustments you can make to help your money stretch further,” said Shari Kruzinski, Executive Vice President, Chief Consumer Banking Officer at WSFS Bank. “Some consumers are already adjusting as they’ve reduced spending on restaurant visits (42%), entertainment (34%), and travel and vacations (34%) from last year. While prices for essentials like groceries may have increased, you can still search for savings by looking for discounts from big box or discount retailers and eating at home.”\n\n\nChanging Spending Habits\n\n\nThe current economic climate has resulted in regional consumers making changes to their spending behaviors to comb...