Business
The Effects of Inflation, Rising Costs and Increasing Interest Rates Driving Regional Consumers to Re-Think Their Future Finances, WSFS Bank’s Annual Money Trends Study Finds
Desire to increase financial stability a key factor in cutting back on non-essentials and delaying life milestones to save more WILMINGTON, Del., Oct. 13,
About this update from Wsfs Financial Corporation
[{"type":"text","content":"Desire to increase financial stability a key factor in cutting back on non-essentials and delaying life milestones to save more\nWILMINGTON, Del., Oct. 13, 2022 (GLOBE NEWSWIRE) -- Nine in 10 Americans (91%) are worried about affording a price increase over the next year, and their regional counterparts (93%) agreed, spurring changes in their plans for spending, saving and even delaying significant life milestones like buying a home or having children, a new WSFS Bank Money Trends study found. The study, which surveyed 1,500 Greater Philadelphia and Delaware region consumers and 1,500 consumers nationally, measured current spending and saving trends and economic sentiment among adults ages 18-55. Economic Confidence Remains Low Mirroring their sentiments from last year, four in 10 (41%) of regional residents feel the local economy is strong in 2022, expressing greater confidence than they have in the U.S. economy, which only 33% currently view as strong. Their overall low confidence in the economy is motivating many to increase their savings, and more than half (54% regionally, 53% nationally) say they are doing so to ensure future financial stability due to their economic concerns. “While the impacts of inflation and rising rates are certainly challenging to consumers’ budgets, it’s a good sign that many are recognizing the importance of saving to build toward future purchases and overall financial wellbeing,” said Shari Kruzinski, Executive Vice President and Chief Customer Officer for WSFS Bank. “It’s also encouraging to see that half of Gen Zers in the region are saving more than they did last year, with nearly half of them (47%) saving for a large purchase like a home or car. Saving more now to better position their future finances is a smart move.” Changing Plans and BehaviorsAmong those increasing their saving, just under half regionally (46%) and nationally (45%) are doing so by cutting back on non-essential purchases and four in 10 (43% regionally; 42% nationally) are proactively setting financial goals, indicating their future spending and borrowing plans for larger purchases may be renewed in the not-too-distant future. However, inflationary prices have had an impact on prioritizing certain life milestones. Despite many still saving for the future, four in 10 both regionally and nationally are now less focused on buyi...