SAN FRANCISCO—Overspending is a top source of anxiety across all generations, according to findings from the latest Affirm Consumer Spending Report.
The survey revealed the average U.S. consumer worries about money six times a day, with 56% saying they often overextend their spending and are left in a difficult position.
Living through the pandemic is believed by many (61%) to have made younger generations more financially savvy, Affirm said.
“What’s more, survey respondents think that Millennials and Gen Z (53%) are generally better at managing their finances than Gen X and Baby Boomers (33%). Additionally, Millennials feel more confident about their finances than any other age group, and are also the most optimistic about where their finances will be 10 years from now,” Affirm stated. “However, it is worth noting that while Millennials are the most confident in their finances, they worry about money more than any other generation — an average of seven times per day.
The survey also revealed that almost half (42%) of Gen Z started saving or plan to start saving by the time they hit 25 years old, compared to 28% of Millennials, 24% of Gen Z, and 17% of Baby Boomers.
The company’s analysis suggested that as consumers seek new ways to manage their budgets, they’re increasingly choosing transparent payment alternatives that allow them to pay at their own pace. The study found that more than one in two (56%) U.S. consumers are interested in using a pay-over-time solution in 2022. Nearly half (49%) of consumers (and 68% of Millennials, specifically) won’t complete a purchase if a retailer does not offer a pay-over-time option at checkout, the survey data show.
Additional Findings
Additional findings in the research include:
- When asked which area of their lives they feel the most confident about, 79% of Millennials say they’re most confident in their finances – compared to 57% Gen Z, 71% Gen X and 65% Baby Boomers
- More than a third of Millennials (39%) and Gen Z (35%) say that not being taught how to budget is one of their biggest setbacks to achieving financial freedom
- Over three-quarters (78%) of Millennials are optimistic about where their finances will be ten years from now, vs. 64% of Gen Zers, 73% of Gen Xers and 57% of Boomers
- Consumers are prioritizing financial stability compared to other areas of life: nearly half would give up drinking alcohol for five years to retire today while almost one in three would give up sex (30%) or their friends (29%)
- When looking for a romantic partner, U.S. consumers agree one’s ability to manage their finances (45%) is more important than their physical appearance (39%); The vast majority (78%) of Millennials would break up with a romantic partner if they handled their money poorly, the report shows
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