With high inflation, are savings out of the picture for American consumers?
While inflation has been slowing down, it has taken a toll on many American households and consumers. This is retroactively affecting saving habits across the board as consumers have to spend more to afford basic necessities.
This increased expenditure is funded in part by credit cards, a new report by Plinqit suggests. Credit card balances reached a high of $841 billion in the first quarter of 2023 – a quarter that is still unfolding.
Moreover, as costs of living increase, consumers are strapped for cash and 61% report living paycheck to paycheck, which is 9% more than last year. As the chart below shows, younger consumers (18-44) are more tied up in various expenses – such as paying off debts, planning for a major life event (like marriage or a baby), purchasing a home or a vehicle – than their older counterparts. Older groups are saving for retirement.
Check out The Consumer Effect’s full article published on tearsheet.com
