Regional Consumers’ Spending and Saving Habits Remain Flexible in Challenging Economy, WSFS Bank’s Annual Money Trends Survey Finds

Thirty-eight percent of regional residents are spending more money now compared to last year, while only 28% are saving more, according to a Money Trends survey from WSFS Bank.

Inflation Cools, But Economic Headwinds Remain

• Rising costs and inflation remained the top driver of increased spending by far in 2024 (69%), followed by having to pay off an emergency expense (29%) or debt (28%).
• More than half are spending more on essentials like groceries (65%), utilities (55%), and transportation (53%) than last year.
• 33% said they’re cutting back on non-essential spending.

Adapting Spending Habits

• 38% indicated they’re spending more than last year, and a nearly equal amount (37%) said they’re spending less.
• Respondents were most likely to be spending less on eating out at restaurants (40%), entertainment (35%), travel and vacations (34%), online shopping and technology (both 31%).
• 44% are using their debit card more often this year, 36% using cash, 35% using their credit card, and 35% using buy-now-pay-later (BNPL) platforms more often.
• 35% of participants who use multiple BNPL services agree that they have lost track of what they owe.
• 45% agree that they, or someone they know, has unknowingly built-up debt as a result of using multiple BNPL services.

Opportunities Still Exist to Save

• 46% report that they are saving less overall compared to last year.
• Of those who said they are saving more, the leading reason is to ensure future financial stability (42%), followed by having specific savings goals (41%).
• 24% were unaware of high-yield money market accounts, while 49% were aware of these accounts but had never used one.
• 18% said they were unaware of Certificates of Deposit or CDs, while 47% said they had heard of CDs but never used one.

Why It Matters: While inflation has cooled during 2024 and interest rates are starting to decrease, it is important for consumers to remain disciplined and budget-focused. The economic headwinds of the past few years have certainly made it more expensive to borrow and difficult to save, but an opportunity still exists for savers to set goals and take advantage of the still-elevated interest rates through CDs and money market accounts, which tend to offer higher rates than a standard savings account. Scheduling an appointment with your local banker can be a great way to build a roadmap to achieve your financial goals.

Deep Dive: Read the full results of the survey, which polled 1,000 respondents in the Greater Philadelphia and Delaware region ages 18-55.