And some appear not to have changed their behavior from last time
American consumers are concerned about a recession; not surprising with more analysts talking about the likelihood within the next few years.
But despite their fears, a new survey reveals that most people are not saving for a rainy day, leaving themselves vulnerable to a financial crisis and reducing their future financial security.
PrePoint Financial’s poll found that 88% of consumers are concerned about a recession, with 83% of those impacted by the Great Recession still recovering.
But savings balances are down 35% year-over-year and 80% of Americans are not very confident they could survive another recession or market downturn in the near future.
That’s because 6 in 10 of those who are not confident are still living paycheck to paycheck.
Convenience over saving
Despite concern about their future financial health, at least one quarter of consumers admit to prioritizing convenience over saving.
For example, 2 in 5 respondents would spend four times as much on transportation to save 20 minutes and 1 in 3 would choose to take $1,000 now rather than waiting a year for $3,000; this number was significantly higher with millennials at 43%.
"Not having to worry about money underpins a brighter future for so many of our respondents, but we're seeing a risky trend throughout the country of prioritizing convenience and instant gratification," said Pierre Habis, president of PurePoint Financial.
While 44% of respondents impacted by the Great Recession have cited keeping a closer eye on their finances since the recession, 1 in 7 have admitted they haven't changed their savings behaviors since being impacted.