Consumers Plan to Curb Spending in 2024
As we kick off the new year, many consumers are looking to tighten their belts and save more. According to a recent survey conducted by Bank of America, consumers are intending to curb their spending in 2024. This could mean cutting back on dining out and other experiences in order to prioritize their financial goals.
Bank of America Survey Reveals Spending Trends
Bank of America’s Winter Spending Survey provided valuable insights into consumer behavior. The survey showed that consumer spending remained robust in 2023, with the average card spending per household increasing by 0.2% compared to the previous year. On a seasonally adjusted basis, per household spending saw a positive growth of 0.1% for two consecutive months.
However, the survey also revealed that holiday spending waned in December. This indicates that consumers started strong but may have become more cautious with their discretionary spending as the year came to a close.
Wages and Salaries Affect Consumer Spending
Bank of America’s analysts highlighted the impact of wages and salaries on consumer spending. They noted that higher-income households experienced a negative year-over-year growth in after-tax wages and salaries toward the end of 2023. Conversely, lower-income households saw an increase in growth. This suggests that the spending gap between these income groups may persist as we enter 2024.
The fluctuations in income growth could potentially influence consumer confidence and willingness to spend. If higher-income households continue to face stagnant or declining income, they may be more inclined to cut back on discretionary expenses.
Top Financial Resolutions for 2024 Identified
Bank of America’s survey also shed light on consumers’ top financial resolutions for the new year. The survey respondents indicated that their primary goals are increasing savings and paying off credit cards. This aligns with the larger trend of consumers aiming to be more financially responsible and reduce debt.
Strategies for Achieving Financial Goals in 2024
In addition to identifying their financial resolutions, survey participants also shared strategies they plan to employ to reach their goals. According to Bank of America, 48% of respondents intend to stick to a budget, while 33% will utilize high-yield savings accounts. These strategies can help consumers exercise better control over their spending and make progress towards their financial objectives.
As consumers move forward in 2024, it will be interesting to see how well they can adhere to their plans for curbing spending and achieving their financial goals. By implementing sound strategies and staying committed to their resolutions, consumers can improve their financial well-being in the challenging economic landscape we are currently facing.
Analyst comment
Positive news: Consumers Plan to Curb Spending in 2024
Short analysis: The news suggests that consumers intend to be more financially responsible and prioritize savings in 2024. This could lead to a decrease in discretionary spending, particularly in dining out and other experiences. However, strategies such as budgeting and utilizing high-yield savings accounts can help consumers achieve their financial goals and improve their overall financial well-being. The market could see a shift in consumer spending patterns and potential impacts on industries related to discretionary expenses.
