Accrue Savings, the merchant-embedded shopping experience that rewards consumers for saving, today released findings from a national survey of over 1,000 consumers conducted with Decode_M, a momentum strategy firm that uses a diverse range of methodologies and data sets to decode data into action.
The results demonstrate how younger Americans have struggled with a cycle of financial dysmorphia and anxiety, and how older generations have benefitted from comparatively flush periods of growth and calm.
"Millennials and Gen Z have experienced constant economic uncertainty: entering the job market during a massive economic downturn, Millennials have struggled to gain financial stability and have been hit with tidal wave after tidal wave of world-shaking events. Gen Z has had to cope with technology pushing perfection, head-spinning U.S. and global politics, and a looming recession," said Michael Hershfield, founder and CEO, Accrue Savings. "Consumers want to prepare for an uncertain future, but the effect of the financial crunch younger generations have felt is also very clear: they are spending beyond their means, they feel pressure to keep up appearances, and they are anxious about saving."
Findings include:
Financial Deception is Almost Universal
Younger generations are more susceptible to the toxicity of self-deception about their financial status, and are more likely to buy items outside of their budget - leading them to financial insecurity.
Everyone is lying - at least sometimes. Only a small percentage of younger generations says that they never lie about their financial situation:
Younger generations are also more likely to make purchases outside of their budget - with only a small percentage citing that they "Never" knowingly purchase beyond their means:
Meanwhile, significant portions of those generations struggle with financial dysmorphia - often spending beyond their means:
Fear and Loathing about Finances
Younger generations are struggling with saving and impulsive spending behaviors, while older generations have it built into their DNA.
Buy Now... Pay Never?
Consumers increasingly use Buy Now, Pay Later apps for purchases - giving more air between the joyous rush of purchasing and pain of repayment - but this has negative consequences:
Younger generations will often use credit to pay down loans: Over one-third of consumers surveyed use credit cards to pay for Buy Now, Pay Later purchases (with Millennials using credit cards almost half of the time):
Retailers take note: For successful impulse purchases, charge $49.99 or less:
Windfalls play a critical role in purchasing behavior:
Savings Behaviors
The majority of people are saving for a purchase over $500, including travel plans, home goods, or major milestone purchases like cars and homes:
Medical care is considered something to save for:
Download the full report HERE.
Launched in November 2021, Accrue Savings empowers consumers to save for a product or service while earning cash incentive rewards from the brand along the way. Brands can finally reward customers who choose saving over debt by making cash contributions to a customer's Accrue Savings FDIC account when customers meet milestones on their savings journey. Partner brands where Accrue is available include Aurate, Smile Direct Club, American Signature, Poly & Bark, Casper, Tire Agent, Eterneva, The Clear Cut, Mark Henry, Ettitude, Heli, and Grind.
Methodology
Survey insights were collected via online questionnaire from May 20 - 26, 2022, among 1,009 consumers in the U.S. ages 18-65+ through Decode_M, on behalf of Accrue.
About Accrue Savings
Accrue Savings is a brand-embedded savings account that provides a sustainable, credit-free payment option for customers. With Accrue's savings-oriented experience, customers are empowered to make their purchases on their own terms. Accrue can turn passive shoppers into active buyers, reduce advertising costs for your brand, and help lock in predictable revenue for your business. For more information, please visit www.accruesavings.com
Accrue Savings is a financial technology company and is not a bank. Banking services provided by Blue Ridge Bank, N.A., Member FDIC.
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