As a baby boomer, I am in a select group raised to believe that my life was destined to be significantly better than my parents could ever dream. During the 80s my first car cost almost as much as my parents’ first home. We baby boomers were living the American dream; conspicuous consumption was at its finest. Bigger was better; expensive was equivalent to quality.
As a retailer, I embrace the purchasing behaviors of the baby boomers. Consumer sales stimulate the economy. Unfortunately, not all consumers spend wisely. Many baby boomers are worried about retirement. During the course of my research for a new book, The Changing American Consumer, The Prosper Foundation and I examine trends in a wide variety of consumers’ attitudes toward the economy, government, purchasing patterns and lifestyles (e.g., eating habits, use of technology). The source of these Consumer insights is the monthly Consumer Survey from BIGinsight™. This ongoing survey has consistently fielded to over 8,500+ Adults each month since September, 2001 – 10+ years of Consumer Insights.
We found that 31.3% of consumers in households earning $50,000 or more are uncertain if they are saving enough for future needs. An additional 35.9% of this group disagree or strongly disagree regarding their sufficient savings plan. In other words, 67% of consumers in household earning $50,000 or more possess financial concern regarding their future. Our examination of consumers over the age of eighteen reveals an equally unsettling future. Almost 30% are uncertain and an additional 44.1% disagree or strongly disagree that they are saving enough for future needs. That is 73.4% of all consumers do not think they are saving enough for future needs.
The ability to save for the future is often dictated by wealth. The sad but all too familiar results our survey reveals that consumers’ wealth has declined in multiple areas. Home values continue to drop as indicated by 46.8% of the consumers; 40.1% are affected by lost jobs. 38.2% have declining stock market investments, with the same percent experiencing a decline in interest rates on savings. Consumers are being pounded financially from the right and left. They simply couldn’t catch a break. No wonder 80.9% believed the recession is not over.
The dramatic changes in the economy during the past 10 years continue to impact the American consumers’ lifestyle and patterns. These changes influence retailers, manufacturers, and distributors with whom consumers choose to conduct transactions for goods and services. The political community actions and reactions, and the very way we communicate with each other have also been altered as a result of these changes.
As we look back over the past ten years, the rate of change is unprecedented in modern times. Those who chose not to adapt may find themselves unable to cope in this new environment. The intention of “The Changing American Consumer” is to provide these reading constituents – Consumers, Marketers, and Political communities with an analysis of the past trends and understanding of implications for the future. Shining a light on these evolutionary changes will benefit businesses and consumers alike.
The Changing American Consumer draws lessons from the ongoing monthly BIGinsight Consumer Survey, offering a timely analysis of the attitudes, expectations, and intentions of US consumers of all ages and income brackets. This research and analysis reveal the long-term consumer trends that are emerging in the wake of the socio-economic upheaval of the past decade. The lessons drawn will prove vital in assisting companies as they refocus in a changing and uncertain new market. This blog site will provide readers with excerpts and highlights from the book.
URL to original article: http://www.builderonline.com/builder-pulse/people-dont-save-enough.aspx?cid=BP:021312:JUMP
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