Recent data suggests that overspending on groceries is a problem affecting all generations, with 48 percent of the 1,800 U.S. adults polled stating that their grocery costs consume most of their monthly budget. This was followed by utility bills (38%) and credit card debt (37%). Interestingly, 38 percent of Gen Zers focus on managing their finances for the future, spending most of their monthly budget on loans, while 46 percent of millennials are grappling with credit card debt. In contrast, 45 percent of Gen X spend the most on groceries, 43 percent of baby boomers pay the most for utility bills, and 43 percent of the Silent generation allocate the most funds for rent and/or mortgages.
A study by UserTesting and OnePoll also showed that despite the increasing popularity of digital banking, 83 percent of people across all generations prefer using physical banks for their financial needs. This preference was particularly strong among younger generations, with 40 percent of Gen Z and 34 percent of baby boomers strictly using physical banks. In comparison, only 10 percent prefer digital banking with no physical presence. Those who preferred physical banks cited the assurance that their transactions were being handled accurately (60%) and the ability to speak to a human (51%) as the reasons. However, 67 percent of respondents still trusted digital wallets and mobile banking apps, with younger generations being the most receptive.
Mobile payment apps were also popular, with 41 percent using them to send and receive money, and 53 percent doing so up to five times per month. However, 60 percent of those surveyed admitted to being more likely to overspend when using digital payment options. Digital bank users also wished for some of the benefits of traditional banks, such as the ability to talk to humans for customer support, with Gen Z desiring this option the most.