March 13, 2023

COUNTRY Financial® Survey Finds Americans are Pulling from Savings, Delaying Purchases and Taking on Credit Card Debt to Make Ends Meet 

Those who have the help of a financial advisor are more likely to save  

BLOOMINGTON, IL – Americans continue to cope with economic impacts on their finances as 2023 is underway. A recent survey from COUNTRY Financial conducted by Ipsos finds Americans are less likely to feel financially secure in February 2023 than 4th quarter of 2022. Seven in ten Americans say inflation has negatively impacted their financial situation a great deal or somewhat (69%), and two in five say inflation has impacted them a great deal (28%). Other economic factors affecting Americans’ finances include increasing interest rates, stock market volatility, debt, and severe weather events. 

Americans are Using Savings to Pay Everyday Expenses and Taking on More Debt

Americans’ finances are being hit as three in five Americans report they have had to take steps to make ends meet. Americans report doing the following over the last year: 

• Putting less money into savings or investments (28%)
• Taking money out of savings (27%)
• Delaying a big purchase or vacation (23%)
• Taking on more credit card debt (19%) 
• Spending less on a big purchase or vacation than they planned (18%)

“With elevated inflation, Americans are doing what they can to make ends meet,” said Chelsie Moore, Director, Wealth Management Solutions at COUNTRY Financial. “If you can’t avoid taking on more debt, try and find a loan with the lowest interest rate, consider consolidating your debt and adjusting your large purchases.”

Additionally, one in ten Americans borrowed money from their friends and family (12%), some have started a second job or increased their work hours (7%), others started a new job at a higher salary (7%), borrowed money from a bank (6%), or delayed their retirement (3%).

Among those who have had to take some action to obtain or save money in the past year, more than half say they utilized this money to cover everyday expenses such as rent, monthly bills, and groceries (54%). About three in ten Americans used the money they saved or obtained for an unexpected expense (35%) or to pay down debt (31%), while one in five used it to make a planned, major purchase (19%) or to pay for home or car repairs (17%).

According to the survey, those who have a financial advisor feel better about their level of financial security and were more likely to say they set aside money for savings or investments in the past two months (75% vs 50% of those who don’t have a financial advisor). They were also less likely to have taken money out of savings (22% compared to 29% of those who do not have a financial planner). 

“A high interest rate environment favors savers vs. spenders,” said Moore. “This means those who are saving are getting paid more to do it. A financial advisor may help you balance short-term saving goals, like an emergency fund, and long-term financial goals like retirement or legacy planning.” 

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