Inflation worries and personal debt aren’t stopping a third of Americans from planning a trip in 2022 and 2023 | New
NEW YORK–(BUSINESS WIRE)–Sept. 20, 2022–
Accumulate savings, the merchant-integrated savings experience that rewards consumers for their savings, today released the results of a nationwide survey of more than 1,000 consumers about their future travel plans. The results revealed that 36% of those surveyed plan to travel and are actively saving for vacations — damning indications that Americans are determined to fully embrace normality and enjoy time off despite continued economic uncertainties.
Americans are also committed to spending on their holiday trips – but are underprepared for the surprise costs and FOMO emotions that arise during the holidays: while the majority of consumers are saving for vacations lasting 2 months to a year at the advance, consumers are underprepared and overspending when they arrive on vacation – typically spending between $500 and $3,000.
The survey was conducted with Decode_Ma dynamic strategy firm that uses a diverse range of methodologies and datasets to decode data in action.
People know they want to go:
Even with the incredibly tough economic environment, consumers are eager to hit the road and see the sights after three years of lockdown and pandemic fears.
- 36% of respondents are saving for a vacation
- Among these respondents 82% save specifically for holidays planned within the next 12 months
- 66% of respondents start saving for their travel plans at least 4 months in advance
- Most people save for travel by storing cash (37%) or simply leaving extra money in checking/savings accounts (40%) – a less than ideal proposition given the trend of spending what’s in a checking account rather than saving it.
- 36% of baby boomers don’t save for the holidays at all.
How do we pay for our holidays?
Consumers earn travel points, cash back and other rewards from credit cards and frequent travel – but if we’re not using those rewards, what’s the point?
- Points – a very popular document from credit card companies – were only 8% of preferred payment methodsand miles (another very popular giveaway with airlines) – only 6%.
- Instead, consumers spend money that is already available: respondents choose debit cards (37%) and cash (36%).
- A third of respondents prefer credit cards (32%) pay for the trip
- Debit card usage increases with younger generations: 45% of Gen Z use debit cards to pay for travel, compared to 38% of Millennials, 34% of Gen X and 30% of baby boomers.
- On the other hand, credit cards are more popular with older generations38% of baby boomers, 32% of Gen X and Gen Y, and 25% of Gen Z.
…And how are we overpaying?
Consumers have a “treat yourself” mentality on vacation– have a drink, try a new activity, buy that expensive souvenir: after all, it’s your vacation. A combination of FOMO, hidden costs, understated extras, and more contribute to post-vacation debt:
21% of respondents have in debt because of vacation.
- Men are more likely than women to have taken on holiday debt (24% versus 19%).
- Generation X is the generation most likely to have taken on holiday debt (27%), followed by Millennials (24%), Baby Boomers (17%) and Gen Z (13%).
- Most (62%) of those who got into holiday debt contracted $500 to $2,999 debt value.
Our finances – and our mentalities – are precarious:
Baby boomers are recognized as the most successful generation, holding 70% of America’s wealth – and they are also the most likely to have credit card or personal debt.
- 69% of respondents are currently in debtwith 60% of those respondents in what they termed “personal/credit card debt”.
- Credit card debt is directly related to age: 41% of Gen Z reported having credit card debt, followed by 57% of Gen Y and 65% of Gen X.
Inflation affects each generation to varying degrees: Due to increased responsibilities such as family expenses, mortgages, education, etc., older generations surveyed expect to be more fiscally conservative in 2023 – and not being able to save so much money.
- 48% of Gen Xers and 46% of Baby Boomers expect their non-essential spending to decrease over the next 12 months
- Gen Z and Millennials are slightly less affected – only 36% of Gen Z and 39% of Gen Y expect the same.
- 65% of the total sample answered that they cannot save as much as before, or they can no longer save at all.
- This number increased to 73% among Gen Xers and Baby Boomers.
Launched in November 2021, Accrue Savings allows consumers to save for a product or service while earning cash rewards from the brand along the way. Brands can finally reward customers who choose to save rather than go into debt by making cash contributions to a customer’s FDIC Accurue Savings account when customers reach milestones in their savings journey. Partner brands where Accrue is available include Aurate Jewelry, Smile Direct Club, American Signature, Poly & Bark, Casper, Tire Agent, Etereva, Clearcut, Mark Henry, Ettitude, Heli and Grind.
The survey information was collected via an online questionnaire from August 8-10, 2022, from 1,026 consumers in the United States aged 18-65 and older via Decode_M, on behalf of Accrue.
About Savings Accumulation
Accrue Savings is a savings option that rewards customers for saving for the things they want, love and dream of having without taking out short-term loans. When it comes to purchases, customers have an endless choice of products, but limited payment options to purchase those items debt-free. With Accrue Savings, they can save for everything from products to services to travel on their own terms, while brands incentivize their savings efforts with cash rewards along the way. For more information, please visit www.incruesavings.com
Accrue Savings is a fintech company, not a bank. Banking services provided by Blue Ridge Bank, NA, Member FDIC.
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CONTACT: Sara Zick
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES PERSONAL FINANCE FINTECH HOLIDAY CONSUMER BABY BOOMERS TRAVEL DATA ANALYTICS GEN Z GEN X FINANCE MILLENNIALS
SOURCE: Accumulated savings
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PUBLISHED: 09/20/2022 09:00 / DISK: 09/20/2022 09:03