Close to 33% of people surveyed admit to only putting away 3-5% of their paycheck each month, and 20% say they don’t save at all.
PITTSBURGH (PRWEB) April 05, 2018
Gift Card Granny, the largest website for buying gift cards at a discount, surveyed over 3,000 of its US based members to uncover the latest trends when it comes to saving and spending money. The popular money saving website gathered and analyzed data across various financial topics including monthly saving, rewards, cash back, mobile app usage, spending habits, and investing. The results provided insight into how today’s money is being spent and saved across all demographics.
SAVING TRENDS WHEN IT COMES TO SHOPPING
41% of shoppers say they look for a coupon or money saving offer each and every time before making a purchase. The high percentage should come as no surprise given today’s amount of options and technologies for savvy shoppers. Although, according to the survey, most people don’t venture very far for savings.
69% report they look no further than the store’s website and email list for saving coupons and promotions. Coupon websites and online apps (including popular coupon browser extensions) finished second (62%) and third (58%) respectively.
“Retailers are aware of how resourceful and saving savvy their customers have become. In the majority of cases, stores and brands form affiliate relationships with coupon websites and apps, paying a small referral commission to ensure the sale on their end. Retailers like Target and JCPenney are offering their own coupon codes in an effort to cut out the middle man and directly satisfy the needs of their customers." said Trae Bodge, smart shopping expert at Gift Card Granny.
Newspaper insert ads and local magazines have taken a back seat to online research with only 53% of shoppers canvassing physical print for savings. Continued decline of newspaper circulation and generational shift are contributing factors with it dropping to 38% among individuals under 35 years of age. The number jumps to 64% for 55 years or older.
REWARD TRENDS WHEN IT COMES TO SHOPPING
According to Google Trends, cash back searches have more than doubled since September 2013 and have reached an all time high as of January 2018. The increased popularity in Google searches lines up an overwhelming 77% of respondents who admitted to owning a rewards credit card, with 40% saying they earn up to 5% in cash back.
The average cash back earnings are less than one might expect with 79% declaring they earn less than $1,000 per year despite the enticing reward return rates.
GENERAL MONEY SAVING TRENDS
Of those surveyed, 68% admit they could do a better job of saving money with only 27% expressing satisfaction with their saving efforts. Medical expenses, monthly mortgage payments, and credit card debt were the top three overall expenses that reduced desired saving amounts. For respondents under the age of 35, car payments, credit card debt, and student loans were the top three drawbacks.
So what are most Americans saving for anyway, you might ask? The answers differ among age groups, but at 60%, contributing to an emergency (rainy day) fund emerged as most popular response across all age brackets.
Retirement (46.5%), Vacation (45%), Home (28%), and a new Car (21%) were all named as savings goals behind a “just in case” fund.
RETIREMENT SAVING TRENDS
Close to 33% of people surveyed admit to only putting away 3-5% of their paycheck each month, and 20% say they don’t save at all. On the other end of the spectrum, there are a minority of prudent savers out there; 13% say they sock away more than 20% of their monthly take home pay.
A savings account (77%) and retirement fund, like a 401k or a Roth IRA (63%), were the most preferred investments. Despite the recent buzz about Bitcoin and other cryptocurrencies, only 5% said they invest in these categories. That percentage was higher for respondents under the age of 35 however, as close to 11% invest in emerging digital assets.
In October of 2017, the Internal Revenue Service announced inflation-adjusted figures for retirement account savings in 2018, raising the maximum contribution to $18,500 annually. You might be wondering how that impacts long term savers. According to the survey, only a small fraction will be affected. A majority of 70% confessed to allotting less than 50% of what’s allowed and only 12% were able to take full advantage of tax exemption by contributing the maximum amount.
MOBILE SAVING TRENDS
67% of people report not using any sort of money saving apps, indicating slow adoption rates. Only 28% say they have a mobile wallet, which points to substantial growth potential for years to come. Mobile wallets do skew higher among the younger demo however, with 38%of respondents under 35 using them.
For full results or media inquiries of Gift Card Granny’s Money Saving & Spending Trends For 2018 survey, please contact PR@giftcardgranny.com or visit https://www.giftcardgranny.com/blog/money-saving-trends-2018.
ABOUT GIFT CARD GRANNY
Since 2009, Gift Card Granny has been saving shoppers money by finding and comparing the best deals on gift cards. Today, the website and apps are home to over 18 million users looking to maximize their savings before they shop. In addition to purchasing gift cards at a discount, Gift Card Granny aggregates real time offers from popular gift card exchanges when users look to sell their unwanted gift cards online or in person. Corporate offerings for bulk gift card buyers are also available.