Nine in ten Americans have set a financial goal for the year, with 83 percent hoping to save – on average – $14,000, according to the most recent survey of consumer spending and saving habits from American Express.
AmEx characterized the savings goal as ambitious because the amount accounts for about 22 percent of average household income.
The latest American Express Spending & Saving Tracker surveyed 2,088 adults, as well as two subgroups – the affluent and young professionals.
“Affluents and young professionals have equally impressive goals for the year, reporting that they plan to save on average $25,000, and $12,000 respectively,” AmEx found.
Here are some other highlights:
- More than half of the general population, 59 percent of affluents and 68 percent of young professionals will rely on primary income to achieve financial goals.
- Small luxuries will be downsized or eliminated – 30 percent of the general population and 42 percent of young professionals will rein in extras such as “morning lattes and manicures.”
- Tax returns will play a role in young professionals meeting their savings goal, with 45 percent expecting it to contribute to savings, compared to 25 percent of both the general population and affluents.
“This year, consumers are focused on finding the right balance between saving and spending by continuing to make smart trade-offs,” said Pamela Codispoti, American Express senior vice president and general manager, Cardmember Services. “For some people we found that means eating out less but buying quality products at the grocery store so it doesn’t feel like a sacrifice. Regardless of the trade-offs they are making, most people seem to be thinking about how they can be better stewards of their money.”
Managing and budgeting finances – 51 percent – is a top priority for all consumers, AmEx found.
For its survey, AmEx defined the “affluent” as having a minimum annual household income of $100,000. A “young professional” is defined as less than 30 years of age, having a college degree, and a minimum annual household income of $50,000.