Survey: Consumers Trim Spending but Remain Confident in Their Finances

Article originally posted on HERE on August 2, 2024

Nearly a third of consumers are cutting back on spending due to inflation, and a higher percentage say they have made changes to their financial priorities.

That’s according to TD Bank’s new 2024 Consumer Spending Index, which found that 30% of respondents have been cutting back spending due to concerns about the economy, and 42% respondents have altered their financial priorities over the past year. Among those whose priorities have shifted, 27% report covering daily living expenses such as groceries and utilities is the priority that has changed the most.

The survey revealed that half (50%) of respondents say their spending has increased the most on groceries over the last year, and more than half (58%) say they spend the most money on groceries in a typical month.

Two-thirds (67%) of those surveyed revealed that some aspect of their finances keeps them up at night, and less than one-third (31%) are planning a major purchase in the next year. Despite these concerns, TD Bank says Americans remain overwhelmingly confident in their financial situations, with 85% indicating they are confident in their ability to manage their finances.

“The daily cost of living is rising for many Americans,” said Chris Fred, head of credit cards and unsecured lending at TD Bank. “Fortunately, there are useful tools available to help consumers manage their finances and maximize card benefits, whether that’s by finding a card with cash back on groceries or by identifying a card with low interest if you know you are going to carry a balance.”