Pasadena Bank: Consumers Focus on Saving and Evolve Spending Habits During Pandemic

Over half of U.S. consumers report saving more despite facing unprecedented economic challenges, according to a new survey conducted by The Harris Poll for CIT Bank, CIT Group’s direct bank based in Pasadena.

The survey reveals that Gen Z and Millennial consumers are leading the way, with over 60 percent of both generations reporting an uptick in savings. When thinking about the future, another 76 percent of consumers are somewhat likely or very likely to save more than they usually do each month.

“An increased emphasis on saving demonstrates consumers’ motivation to adopt healthy financial strategies no matter what obstacles they may be facing,” Ravi Kumar, head of CIT’s Direct Bank and Retail Banking Digital Products, said. “We’re encouraged to see so many taking steps to prioritize preparing for the future in the midst of this unique time.”

With many consumers staying close to home, around four in 10 consumers reported spending more on groceries. A quarter are getting food delivered more frequently, and 22 percent have increased spending on books, games, apps and subscriptions during the same time frame, the survey showed.

Over 40 percent of consumers have also increased their online shopping habits overall, the survey said. While many are changing what they purchase and how, the survey also reveals that four in 10 of consumers are making fewer impulse purchases, highlighting that many are being more deliberate about what they purchase.

“Consumers have shown they can quickly pivot and adapt new strategies to meet their evolving lifestyles,” Kumar continued. “We’re committed to helping them make their savings work harder while keeping spending under control.”

CIT said automating deposits is key to keeping within budget and achieving financial goals. The survey showed 49 percent of consumers are somewhat or very likely to automate contributions to 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,” Kumar said.

To learn more about the survey, visit www.cit.com/cit-bank/learn/articles/saving-and-spending-trends-by-the-numbers.