Ongoing Inflation Concerns Are Reshaping Spending Habits of U.S., TD Bank Survey Reveals

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Ongoing Inflation Concerns Are Reshaping Spending Habits of U.S., TD Bank Survey Reveals .bwalignc { text-align: center; list-style-position: inside } 87% of U.S. consumers are changing spending due to inflation; one in four Americans feel worse about their personal finance situation than they did six months ago Inflation is reshaping U.S. spending patterns and forcing households to rethink how they manage everyday expenses according to a new survey from TD Bank, America's Most Convenient Bank. Nearly 90% of respondents cited that rising prices have affected their spending. When asked to select the single action that best describes how they are adjusting, nearly one-third (29%) of consumers reported pulling back on nonessential purchases, while about one in five (19%) are seeking out more discounts and promotions. “The cost of living continues to rise, making it even more important to have a good grasp on your finances and the tools available to you,” said Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank. "Consumers are facing a lot of uncertainty, and we want to help them navigate it." Consumers are feeling the crunch regardless of income: 84% of respondents with household income of $100k+ reported inflation impacts, versus 88% of respondents with household income under $50k. Grocery Grumbles: Considerable Rises Call for Cutbacks Groceries make up the bulk of credit card purchases for many Americans, with 46% of respondents citing it as their top spending category in a typical month. Gas ranked second, selected by 13% of respondents. Discretionary categories rarely top the list of credit card expenses. Restaurants and dining out were identified as the top category by 9% of respondents, while fewer chose entertainment and social activities (6%) or non-work travel and vacations (2%). “There is a common misperception of credit card spending as frivolous, but that just isn't the reality for most Americans," Fred added. "These survey findings show that Americans are using credit cards to buy essentials like gas and groceries, and they are maximizing the rewards like cash back to make the most of their spend.” Rising grocery and gas spend have had the biggest impact on household budgets, prompting consumers to prioritize their essentials. Nearly half of surveyed consumers (49%) say their spending on groceries has in...

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