TD Bank, America’s Most Convenient Bank®, has released its annual 2024 Consumer Spending Index, highlighting notable shifts in consumer spending and financial priorities. The survey, which interviewed over 1,500 American credit cardholders, shows that half (50%) of respondents have seen their spending increase the most on groceries over the past year. Moreover, more than half (58%) report groceries as their highest monthly expenditure. Despite a slowdown in inflation, nearly one-third (30%) of respondents are reducing spending due to economic concerns, and over two-fifths (42%) have adjusted their financial priorities in the past year. Of those whose priorities have shifted, 27% say covering daily expenses like groceries and utilities has become their main focus.
Key Findings:
- Financial Concerns: Two-thirds (67%) of respondents say financial worries keep them up at night, and only 31% are planning a major purchase in the coming year. Nevertheless, 85% of Americans remain confident in their ability to manage their finances.
- Credit Card Preferences: Most consumers hold multiple credit cards, with 47% owning three or more. Rewards cards are particularly popular, with 83% of respondents having at least one. When selecting a new card, consumers prioritize the rewards program structure (34%), attractive introductory offers (33%), and the reputation of the issuer (24%).
- Debit vs. Credit: Consumers are split between credit and debit for everyday purchases, with 43% using credit cards and 39% preferring debit or check cards. Credit card users value convenience (64%), rewards (60%), and security (46%). Cash remains a primary spending method for only 10% of respondents.
- Buy Now, Pay Later (BNPL): BNPL options are used by 28% of respondents, with Millennials (45%) more likely to use these services compared to Baby Boomers (16%). Popular reasons for using BNPL include spreading out payments (47%) and low or no interest rates (23%).
- Customer Service Preferences: While 82% of respondents prefer online or mobile app payments, 56% still favor phone support for customer service, particularly among Baby Boomers. This indicates a continued demand for personalized service alongside digital convenience.
- Savings and Financial Education: With persistent inflation and high interest rates, only 56% of respondents are actively saving for retirement. Additionally, 20% report that outstanding credit card balances hinder their financial goals. Financial education remains a priority, with 70% of parents teaching their children about credit. Popular methods for helping children establish credit include secured cards (24%), loans (20%), and adding them as authorized users (20%).
Methodology:
The survey was conducted online by Big Village Insights from June 4-11, 2024, among a sample of 1,510 U.S. adults aged 18+ who have a credit card.
