New York - A newfound frugality and the tendency to save more may be permanent changes brought about by the United States recession, according to a new survey.
The survey conducted for Citigroup found 63 per cent of American consumers surveyed said the way they spend and save has been forever changed.
In the survey released on Friday, only one-third said their spending and saving would go back to the way it was before the recession. The random telephone survey, conducted by Hart Research Associates, included 2,005 adults interviewed between Sept 1-5. It has a statistical margin of error of plus or minus 2.2 per cent.
The survey found around 60 per cent of respondents said they would continue to cut back on everyday expenses, would save and invest more, and would continue to cut down on credit card purchases and reduce debt.
‘This new survey points to a profound shift in the way people think about their saving and spending,’ said Citi’s senior vice-president of global community relations Eric Eve. ‘The current economic environment is altering, perhaps permanently, the way we think about spending money.’
The survey suggested the changes are broadly distributed across all income levels and ethnic groups. More than half at all income levels said they have reduced debt and postponed the purchase of a major item, such as a car.
Americans earning less than US$50,000 (S$71,000) per year were most likely to cut back on everyday expenses (80 per cent), followed by 76 per cent of those who earn US$50,000 to US$75,000. But even at the top of the income scale, people are making adjustments and cutting back on everyday expenses - 70 per cent of those who earn over US$150,000 and 68 per cent of those who earn US$75,000 to US$150,000.
Nearly one-third of higher wage earners and slightly fewer - 27 per cent - of those at lower pay levels said they are thinking about postponing retirement because money is tight. Significantly, higher numbers of black and Hispanic workers said they are working longer hours to make ends meet.
Those groups have sought more education to improve their employment opportunities in higher numbers, with 36 per cent of blacks and Hispanics reporting they have gone back to school.
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Americans say spending habits ‘altered for good’
AP
27 September 2009
New York - A newfound frugality and the tendency to save more may be permanent changes brought about by the United States recession, according to a new survey.
The survey conducted for Citigroup found 63 per cent of American consumers surveyed said the way they spend and save has been forever changed.
In the survey released on Friday, only one-third said their spending and saving would go back to the way it was before the recession. The random telephone survey, conducted by Hart Research Associates, included 2,005 adults interviewed between Sept 1-5. It has a statistical margin of error of plus or minus 2.2 per cent.
The survey found around 60 per cent of respondents said they would continue to cut back on everyday expenses, would save and invest more, and would continue to cut down on credit card purchases and reduce debt.
‘This new survey points to a profound shift in the way people think about their saving and spending,’ said Citi’s senior vice-president of global community relations Eric Eve. ‘The current economic environment is altering, perhaps permanently, the way we think about spending money.’
The survey suggested the changes are broadly distributed across all income levels and ethnic groups. More than half at all income levels said they have reduced debt and postponed the purchase of a major item, such as a car.
Americans earning less than US$50,000 (S$71,000) per year were most likely to cut back on everyday expenses (80 per cent), followed by 76 per cent of those who earn US$50,000 to US$75,000. But even at the top of the income scale, people are making adjustments and cutting back on everyday expenses - 70 per cent of those who earn over US$150,000 and 68 per cent of those who earn US$75,000 to US$150,000.
Nearly one-third of higher wage earners and slightly fewer - 27 per cent - of those at lower pay levels said they are thinking about postponing retirement because money is tight. Significantly, higher numbers of black and Hispanic workers said they are working longer hours to make ends meet.
Those groups have sought more education to improve their employment opportunities in higher numbers, with 36 per cent of blacks and Hispanics reporting they have gone back to school.
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