As prices continue to rise amid inflation, financial stress is also rising, according to new research from Affirm, the payment network that empowers consumers. The study found that 73% of Millennials/Gen Z consumers — and 66% of all US consumers — are worried that rising costs will keep them from paying for the things and experiences they want achieve this year.
The study surveyed 1,740 consumers about how inflation affects their spending habits and revealed three key trends in how Americans respond to pressure on their wallets.
A night out is out of order – instead, consumers are prioritizing home as the place of happiness
Home shopping is the top category Americans plan to prioritize as costs rise (38%).
Dining out (53%), entertainment (47%) and beauty (34%) are the top categories consumers plan to deprioritize.
The younger generation, in particular, is feeling the pressure on their wallets and reacting accordingly
More than half (53%) of Millennials and Gen Z plan to spend less in response to rising costs, and 21% plan to invest their tax refund this year.
In contrast, 81% of Gen Xers and Baby Boomers plan to spend the same or more during inflation, and only 14% plan to invest their tax refund.
Consumers are turning to flexible payment solutions to better budget
Nearly one in four US consumers (23%) are likely to use a “buy now, pay later” option like Affirm in the next month due to rising prices. Millennials/Gen Z are almost twice as likely (41%).
“Whether they’re shopping for the best price for a new kitchen appliance or grabbing what’s left over to save for bad weather, one thing is undeniable: Americans are feeling the impact of inflation as prices continue increase,” said Silvija Martincevic, Commercial Director at Affirm. “At a time when many things are beyond our control, Affirm’s products are designed to restore some of that control, empowering consumers to pay responsibly over time and increasing their power to purchase. In doing so, we help consumers get the items they need, in a way that fits their budget. »
Affirm gives eligible consumers the flexibility to buy the things they want and need while spreading the cost over bi-weekly or monthly payment terms and terms ranging from six weeks to 60 months. With Affirm, consumers never owe more than they agree to pay upfront and have access to a flexible, transparent and convenient way to pay over time.
This research was conducted by YouGov on behalf of Affirm between March 22-24, 2022. Percentages are based on the 87% of Americans who know what inflation means.
Affirm’s mission is to provide honest financial products that improve lives. By creating a new kind of payment network, built on trust, transparency and putting people first, we’re empowering millions of consumers to spend and save responsibly, and empowering thousands of businesses the tools they need to fuel their growth. Unlike credit cards and other payment options over time, we show consumers exactly what they will pay upfront, never increase that amount, and never charge late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | Twitter.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220414005319/en/