Life Milestones Lead to Financial Stress for Majority of Americans, Outweighs Emotional Stress
April 04 2023 - 8:30AM
Business Wire
New research shows consumers desire more
financial flexibility to celebrate life’s big moments
Most Americans will celebrate a major life milestone in the next
year, and it’s no surprise that marking those moments can come with
some emotional stress. However, new research from Citizens and
Wakefield reveals that paying for these life events is what really
weighs on people, and that access to more payment options could
help ease the way.
According to the research, 78% of Americans will experience a
major life milestone in the next decade, and half will encounter a
major life event within the next 12 months; and while major life
moments can take an emotional toll, 60% of Americans and 73% of Gen
Z Americans say the financial stress of paying for the event is
greater than the associated emotional stress.
Increased financial flexibility, including more payment options,
would enhance these milestones, which for the year ahead include
celebrating a wedding anniversary (18%) and purchasing a new home
(15%). For the more than 3 in 4 Gen Z consumers who anticipate a
major life event this year, 42% will move into a new apartment, 16%
are starting college, and 11% are getting married.
“There’s a disconnect between consumer desire to celebrate
life’s big moments in the way they want and their ability to pay
for those moments without high levels of financial anxiety,” said
Christine Roberts, Executive Vice President and Head of Citizens
Pay, a market leading point-of-sale consumer financing solution.
“Predictable, low interest monthly payment options, such as
installment financing, can help remove financial stress and enable
people to more readily enjoy life’s key moments. This is a critical
insight as we continue to innovate and deliver new products that
can help consumers responsibly manage their financial lives.”
Financial Flexibility for Major Milestone
Americans are eager to celebrate life’s biggest moments, but
many wish they had the financial flexibility to afford a better or
more luxurious item related to the event.
- Weddings: Of those who had a
wedding or are planning to marry, 82% wish they could have the
financial flexibility to afford a more luxurious honeymoon (54%) or
more expensive wedding rings (28%).
- New Homes: Nearly all (97%) of
those planning to buy a new home wish they had the financial
flexibility to afford more, including higher quality furniture
(51%), more smart home electronics (43%), and top of the line
appliances (42%).
- Family Planning: Nearly 3 in 4
parents (74%) and those expecting to welcome a child into their
homes wish they had the financial flexibility to provide a better
amenity, including higher quality furniture (41%) and smart
electronics, like a baby monitor (38%).
- College: Among those that have
started college or expect to, 92% wish they had the financial
flexibility to afford a relevant item, such as personal electronics
(62%), funds to travel home more often (57%), and appliances for
dorm rooms (56%).
Planning for Big Purchases
With 9 in 10 consumers planning to make large purchases in the
next 12 months – including a vacation (42%), a new cell phone
(42%), a new laptop (36%) and new furniture (31%), consumer
installment financing options, such as Citizens Pay, let consumers
safely and securely pay off a purchase over time. While credit
cards (64%) and cash (48%) are the leading ways consumers will
consider paying for purchases of $500 or more in the next 12
months, 17% will consider using buy-now-pay-later (BNPL)
services.
Pay Off Over Time
Having the financial flexibility to make big ticket purchases
(53%) is the top benefit that consumers cite for using BNPL
services, along with ease of applying (39%), and being accepted at
most retailers (29%).
In the past 12 months, nearly 1 in 5 consumers (18%) have used
BNPL services for purchases of $500 or more, driven by Millennials
(29%) and Gen X (19%). Nearly half (46%) of consumers who have not
used BNPL will consider it for upcoming purchases of $500 or more,
particularly as prices rise due to inflation.
Citizens Pay is an innovative consumer financing solution that
is embedded into the customer journey to maximize sales and drive
customer loyalty, both in-store and online. To learn more, please
visit www.citizenspay.com.
Research Methodology
In partnership with Wakefield Research, the online survey was
conducted among 2,000 nationally representative U.S. adults ages
18+, including an oversample of 500 Gen Z respondents, between
January 20 and January 29, 2023. For the purpose of this survey,
BNPL was described as a loan that allows consumers to purchase a
product or service immediately and pay for it over time in a series
of fixed installments, with either no interest or low interest
charges.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and
largest financial institutions, with $226.7 billion in assets as of
December 31, 2022. Headquartered in Providence, Rhode Island,
Citizens offers a broad range of retail and commercial banking
products and services to individuals, small businesses,
middle-market companies, large corporations and institutions.
Citizens helps its customers reach their potential by listening to
them and by understanding their needs in order to offer tailored
advice, ideas and solutions. In Consumer Banking, Citizens provides
an integrated experience that includes mobile and online banking, a
full-service customer contact center and the convenience of
approximately 3,400 ATMs and approximately 1,100 branches in 14
states and the District of Columbia. Consumer Banking products and
services include a full range of banking, lending, savings, wealth
management and small business offerings. In Commercial Banking,
Citizens offers a broad complement of financial products and
solutions, including lending and leasing, deposit and treasury
management services, foreign exchange, interest rate and commodity
risk management solutions, as well as loan syndication, corporate
finance, merger and acquisition, and debt and equity capital
markets capabilities. More information is available at
www.citizensbank.com or visit us on Twitter, LinkedIn or
Facebook.
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Eleni Garbis eleni.garbis@citizensbank.com 781-471-2233
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