Quicken Inc., maker of America’s best-selling personal finance software, today shared findings from a survey that explored people’s perceptions of their financial health amidst the current economic climate and its impact on their spending and saving.
“The past year has been topsy-turvy for consumers from an economic perspective, so we wanted to take the temperature of how people are feeling about their financial health and spending power,” said Eric Dunn, CEO of Quicken. “With more than half reporting that their financial situation has deteriorated in the past 12 months, we found that many are prioritizing saving for their emergency fund while considering cutting down on expenses like streaming services, retail, and restaurants.”
People are adjusting their financial habits as a result of the economic conditions
The past year has seen rising prices and inflation, waves of layoffs, and warnings of a forthcoming recession. As a result, half (51%) of survey respondents feel anxious when thinking about the current economic situation, with nearly half (48%) feeling frustrated and nearly a third (31%) scared.
The challenging economic climate is impacting consumers’ financial power and decision-making when it comes to their money. Two-thirds of people had to take financially restrictive actions over the last 12 months, including delaying a big purchase (29%), pushing out vacation or travel plans (27%), selling possessions (18%), dipping into a 401K (16%), liquidating investments (15%), stopping using a credit card (15%), or picking up an extra job (11%). As one respondent noted, “I am buying less because everything is so much more expensive.” It’s no surprise, considering more than half of consumers (53%) ranked inflation as their biggest concern among inflation, layoffs, interest rates and stock market performance.
Emergency funds coming into focus
Two-thirds (66%) of people say that the current economic situation has made them rethink how much they should…
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