Table of Contents
Executive Summary
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- Top takeaways
- As the US economy continues its rapid recovery, 36% say they are better off when it comes to their financial situations
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- Figure 1: Change in financial situation in the past 12 months, 2021
- Consumers are looking to put their savings to work through domestic travel
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- Figure 2: Future spending behaviors, 2021
- Minorities remain most concerned over their financial future, with the pandemic only making their road to recovery all the more grueling
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- Figure 3: Concern over financial future, by race and ethnicity, 2021
- Market overview
- Opportunities and challenges
- FIs who use personalized tools and a proactive approach to improving financial literacy and management will come out ahead in the next normal
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- Figure 4: Fifth Third Early Pay, 2021
- Figure 5: Digit, 2021
- BNPL is providing many younger consumers with a competitive alternative to using a credit card
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- Figure 6: Affirm Card, 2021
- Figure 7: Tommy Hilfiger x Klarna email 2021
State of the Economy
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- Economic overview
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- Figure 8: Key economic indicators, 2021
- Unemployment rates continue to improve in line with the country’s reopening
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- Figure 9: Unemployment and underemployment, 2007-21
- Consumer confidence surges amid vaccination efforts and a healthier US economy
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- Figure 10: Consumer Sentiment Index, 2007-21
- DPI dips as effects from March’s financial assistance fade
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- Figure 11: Disposable Personal Income change from previous period, 2007-21
- Personal savings rate falls as consumers put their savings to work
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- Figure 12: Personal saving rate, seasonally adjusted, 2007-21
- GDP expands and primed for further growth, as the US shows signs of a strong economy
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- Figure 13: GDP change from previous period, Q1 2007-Q1 2021
The Consumer – Key Takeaways
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- Over half of unemployed adults are not financially worse off than before
- 38% of consumers expect to financially recover within 1-2 years
- Home renovations to remain a popular outlet among consumers
Change in Financial Situation
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- 36% of consumers have seen their financial situation change for the better over the past 12 months
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- Figure 14: Change in financial situation in the past 12 months, 2021
- Almost half of unemployed adults are financially worse off than before
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- Figure 15: Change in financial situation in the past 12 months, by employment status, 2021
Financial Situation Recovery
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- 38% of consumers expect to financially recover within 1-2 years
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- Figure 16: Expectation for financial recovery, 2021
- Almost a quarter of financially struggling consumers don’t expect to ever recover
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- Figure 17: Expectation for financial recovery, by financial situation, 2021
Definition of Financial Success
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- Perception of financial success changes with age
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- Figure 18: Definition of financial success, by generation, 2021
Past Spending Behaviors
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- Consumers cut back on overall spending as they add to their savings
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- Figure 19: Past spending behaviors, 2021
- Lower-income households continue their financial struggle throughout the pandemic
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- Figure 20: Three past spending behaviors, by income level, 2021
Future Spending Behaviors
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- Domestic travel primed for mass demand as consumer confidence surges
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- Figure 21: Willingness to travel domestically since December 2020, 2021
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- Figure 22: Visa Direct, 2021
- Home renovations to remain a popular outlet among consumers
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- Figure 23: Spending behaviors – Past and future, 2021
Concern over Financial Future
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- Despite an improving economy, financial concerns still loom over half of consumers
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- Figure 24: Concern over financial future, 2021
- Minorities most concerned over their financial future, as they bear the brunt of the pandemic
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- Figure 25: Concern over financial future, by race and ethnicity, 2021
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- Figure 26: Greenwood, 2021
Aspects of Future Financial Concern
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- Providing for the family and healthcare costs are the two biggest areas of concerns for consumers
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- Figure 27: Aspects of financial future concern, 2021
- The lack of income has over half of unemployed consumers concerned over their ability to provide for their families
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- Figure 28: Aspects of financial future concern, by employment status, 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
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