Consumers focus on saving and evolve spending habits

Rhea-AI Summary

CIT's recent survey by The Harris Poll highlights a significant shift in consumer behavior amid economic challenges. Over half of U.S. consumers report an increase in savings, particularly among Gen Z and Millennials, where over 60% are saving more. Additionally, 76% indicate they plan to save more monthly. Spending habits have also changed, with 44% shopping online more and 40% reducing impulse purchases. Notably, 49% of consumers are inclined to automate savings contributions, reflecting a growing trend toward financial responsibility.

Positive

• Over 50% of U.S. consumers are saving more.
• 60% of Gen Z and Millennials report increased savings.
• 76% of consumers likely to save more monthly.
• 44% of consumers are shopping online more.
• 40% reported fewer impulse purchases.
• 49% inclined to automate savings contributions.

Negative

• None.

PASADENA, Calif., Sept. 2, 2020 /PRNewswire/ -- Despite facing unprecedented economic challenges, over half of U.S. consumers report saving more, according to CIT's new survey conducted by The Harris Poll.¹  

The survey reveals that, in particular, Gen Z and Millennial consumers are leading the way with over 60% of both generations reporting an uptick in savings. When thinking about the future, another 76% 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," said Ravi Kumar, head of CIT's direct bank. "We're encouraged to see so many taking steps to prioritize preparing for the future in the midst of this unique time."

Shifts in Spending
With many consumers staying close to home, around 4 in 10 consumers reported spending more on groceries. A quarter are getting food delivered more frequently, and 22% have increased spending on books, games, apps and subscriptions during the same time frame.

Over forty percent (44%) of consumers have also increased their online shopping habits overall.  But while many are changing what they purchase and how, the survey also reveals that 4 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," continued Kumar. "We're committed to helping them make their savings work harder while keeping spending under control."

Strategies to save
For many, automating deposits is key to keeping within budget and achieving financial goals. The good news is 49% of consumers are somewhat or very likely to automate contributions to a savings account in the future.

According to Kumar, "the ability to establish a regular, automated savings framework is a simple, yet impactful way to build a habit of saving each month."

CIT's eChecking, Savings Builder and Money Market accounts are equipped with a number of features such as card controls, 24-7 account access, and electronic transfer tools that make the task of setting aside money more straightforward.

Visit CITBank.com to learn about the recent survey and products.

About CIT
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.

MEDIA RELATIONS: 
Olivia Weiss
212-771-9657
olivia.weiss@cit.com

                                                                                        
¹ This survey was conducted online within the United States by The Harris Poll on behalf of CIT from June 18-22, 2020 among 2,001 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

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SOURCE CIT Group Inc.

FAQ

What does CIT's recent survey indicate about U.S. consumer saving habits?

CIT's survey reveals that over 50% of U.S. consumers are saving more, especially among Gen Z and Millennials, with over 60% reporting increased savings.

When was CIT's survey conducted?

The survey was conducted from June 18-22, 2020.

What changes in spending habits were reported in CIT's survey?

CIT's survey found that 44% of consumers increased online shopping and 40% are making fewer impulse purchases.

How many consumers are likely to automate savings contributions according to CIT?

According to CIT, 49% of consumers are somewhat or very likely to automate contributions to a savings account in the future.

What demographic is leading the savings trend according to CIT's survey?

Both Gen Z and Millennials are leading the savings trend, with over 60% reporting an uptick in savings.