With many Americans continuing to work from home through the year, it is unsurprising that online shopping trends continue to increase. However, at the same time, new survey data from CIT Bank shows that U.S. consumers are also making an effort to save money.
According to CIT Bank, Gen Z and Millennial consumers are leading the focus on saving, with more than 60 percent of both generations saying they have increased savings during this time. Overall, 76 percent of all consumers said they are somewhat likely or very likely to save more than they usually do every month.
Automatic deposits, the company said, is key when consumers are working with a budget with financial goals in mind. In its survey, 49 percent of respondents said they are somewhat or very likely to automate income into a savings account in the future.
“The ability to establish a regular, automated savings framework is a simple, yet impactful way to build a habit of saving each month,” said Ravi Kumar, head of CIT’s direct bank. “An increased emphasis on saving demonstrates consumers’ motivation to adopt healthy financial strategies no matter what obstacles they may be facing. We’re encouraged to see so many taking steps to prioritize preparing for the future in the midst of this unique time.”
Still, CIT’s survey revealed increased spending in areas including books, games, apps, and subscriptions during the pandemic and 44 percent of consumers have increased online shopping habits overall. This spending extends to groceries as well as people continue to stay close to home. In fact, 40 percent of respondents reported spending more on groceries while a quarter said they are getting food delivered more frequently.
Following grocery spending increases, 30 percent of consumers said they have increased the frequency of shopping online for clothing with loungewear seeing particularly increased spending.
However, the survey found that as consumers shop more online during the pandemic 40 percent are making fewer impulse purchases. According to the company this shift reflects consumers becoming more deliberate about purchases.
“Consumers have shown they can quickly pivot and adapt new strategies to meet their evolving lifestyles,” continued Kumar. “We’re committed to helping them make their savings work harder while keeping spending under control.”
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