Morning Consult Report Finds Consumers Are Worse Off Financially Now Than Last Year
Morning Consult’s State of Consumer Banking and Payments report found that consumers are worse off financially than they were last year, amidst evolving economic conditions, increased inflation, rising interest rates, and repercussions from recent bank collapses. Younger consumers and consumers in higher income households are facing the biggest drops in their financial situations.
Charlotte Principato, Morning Consult’s lead financial services analyst, said that high-income households “have started to feel the pain. We tend to see lower and middle income households impacted more quickly by inflation, since they have less financial cushion, while higher-income households may not exhibit any changes at all in their financial well-being during periods of inflation.
Households making over $100,000 annually were most likely to say they have taken active steps to prepare for an economic recession or downturn. Younger generations are facing more obstacles regarding student loans. 33 percent of millennials, 21 percent of Gen Zers, and 16 percent of Gen Xers said they have student loan debt.
Data also indicated that the financial well-being fell across all generational demographics except millennials; their well-being was up 0.56 points in February 2023 compared to February 2022. Out of all generations, millennials reported having the highest levels of credit card, mortgage, auto, medical, educational, personal, “buy now, pay later,” home equity, and other types of debt.
The report also found that while consumers’ trust in banks remains high, many are still considering moving their money. 23 percent of U.S. adults said in March that they were considering starting a relationship with a new bank within the next six months, up by 8 percent from February.