H&R Block’s 2024 Outlook on American Life Data Shows Rise in Consumer Debt Amidst Increased Holiday Spending
December 18 2024 - 8:42AM
Even as rising levels of debt further strain household budgets, and
with many Americans already facing financial pressures that could
lead to even greater economic challenges in the year ahead, holiday
spending is increasing. These findings echo H&R Block’s (NYSE:
HRB) fourth annual 2024 Outlook on American Life report, which
reveals that while many generations remain optimistic about their
income and buying power, they are simultaneously burdened by
overwhelming debt – especially Gen Z.
This year’s report found that most Americans (66%) across income
levels and generations feel optimistic about their income growth,
retirement prospects, and ability to maintain financial stability.
Simultaneously, this theme of optimism is met with the reality that
debt and loans are threatening to crush economic momentum for many
consumers.
“Following record Black Friday spending, we understand that it
can be challenging to make the most of your money while balancing
financial responsibilities,” said John Thompson, Vice President of
Financial Services at H&R Block. “H&R Block is committed to
helping people navigate these pressures by providing the tools,
guidance, and support they need to manage their finances wisely and
avoid falling deeper into debt during the holiday season.”
A Deeper Look at Americans’ Debt
This holiday season, people are already exceeding expectations
set for retail holiday shopping. Online and in-store purchases were
higher than expected during both Black Friday and Cyber Monday,
nodding to the increase in buying power that Americans of all
generations report experiencing.1 While holiday shopping is higher
than expected, many consumers are feeling the strain of this
spending – particularly Gen Z and Gen X.
According to this year’s Outlook on American Life report, Gen X
is carrying the most credit card debt (55%), followed closely by
Millennials (49%), Boomers (47%), and then Gen Z (39%) – though
it’s Gen Z that feels the most burdened. Of those holding credit
card debt, as many as two in three people say their level of debt
is unmanageable. Further, Gen X’s outlook on their finances and
greater economic opportunity conflict with younger Americans, as
they are the most likely to be “not at all confident” they’re doing
what is needed to meet longer-term goals such as saving for
retirement.
Credit card debt isn’t the only factor weighing these consumers
down: H&R Block found that 1 in 6 Americans hold student debt,
over a third reporting they have more debt than they can
manage.
Americans of All Ages are Spending More Than They
Earn
In addition to increasing amounts of debt, the Outlook on
American Life report found that despite growing income and buying
power, a third of all respondents across generations reported
spending more than they earned in the last 12 months. Only 30% of
Gen Z say they do not buy what they cannot afford (vs. 54% of
Boomers, 40% of Gen X, and 28% of Millennials), leading them to
make unaffordable purchases that pile onto their credit card debt.
Plus, with 1 in 5 Americans agreeing that they wouldn't be able to
cover household expenses for a full week without a source of
income, there is a clear gap between American spending and
earning.
“We recognize that spending, earning, and saving looks unique
for each and every person, and it is our goal to help every H&R
Block client reach the financial future they deserve,” said
Thompson. “The insights gathered from the Outlook on American Life
report on how Americans are faring financially allow us to further
understand how generations are evolving, and what they’re concerned
about, so that we can better assist our clients all year
round.”
To learn more and read the full Outlook on American Life report,
please visit www.hrblock.com/outlook-on-american-life/. To view
media assets, including a downloadable report and infographics,
visit
https://www.hrblock.com/tax-center/media-kit/outlook-on-american-life-report-media-kit/.
1 “197 Million Consumers Shop Over Thanksgiving Holiday
Weekend”, National Retail Federation,
https://nrf.com/media-center/press-releases/197-million-consumers-shop-over-thanksgiving-holiday-weekend
About H&R BlockH&R Block, Inc. (NYSE:
HRB) provides help and inspires confidence in its clients and
communities everywhere through global tax preparation services,
financial products, and small-business solutions. The company
blends digital innovation with human expertise and care as it helps
people get the best outcome at tax time and also be better with
money using its mobile banking app, Spruce. Through Block Advisors
and Wave, the company helps small-business owners thrive with
year-round bookkeeping, payroll, advisory, and payment processing
solutions. For more information, visit H&R Block
News.
Media Contacts: |
Media
Relations: |
Heather Woodard, (816) 379-2568, heather.woodard@hrblock.com |
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Media Desk, mediadesk@hrblock.com |
|
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Investor Relations: |
Jordyn Eskijian, (816) 854-5674,
jordyn.eskijian@hrblock.com |
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An infographic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cc323fae-2274-4d33-80d3-3ec992daeef1
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