Almost half of the consumers in the US believe their finances will improve next year. This is according to a survey by Chase bank.
A survey by Chase Financial Health Consumer conducted together with Morning Consult has shown that around 50% of consumers in the US are optimistic their finances will get better in the coming year. The survey involved over 5000 consumers investigating their finances and their thoughts on saving and budgeting.
The survey also involved consumers from different regions and closely evaluated the financial goals and impact of the economy among the black and the Latinx community. These communities are the ones greatly affected by the pandemic.
Prevailing economic challenges
According to the survey, the pandemic had created a negative impact on employment and income. US consumers had thereby suffered from job loss, and their finances had been affected negatively. However, the pandemic had also made consumers rethink how they are spending their finances. This is according to Lawrence Bailey, the head of Community and Business Development for Chase.
The responses provided from the survey show 37% of the general population said their finances had declined in the past year. Out of these, 16% had lost their jobs or sources of income.
The survey also shows that 20% of consumers had less disposable income. This trend indicates that 20% of US consumers had a lower amount of disposable income. This issue was also reported among the Black and Latinx communities, where 23% and 25% of respondents were interviewed for the survey.
Consumers adopting new financial rules
Some changes consumers had made regarding their finances include increasing their savings and monitoring their credit score. By doing this, consumers were preparing for an uncertain future to help them succeed in the long term.
65% of consumers stated that they were in an excellent financial position. The hardest-hit communities were black and Latinx, but the demographic was the most optimistic about their finances getting better next year. 51% of the population was looking towards saving more whole 39% of the respondents and looking to reduce their debts.
24% of the Black and Latinx community also stated that they were taking measures to improve their credit score. This is higher compared to 19% of all respondents to the survey. 21% of Black respondents and 19% of Latinx respondents had started generating income in the last year. This is higher compared to 11% of the total respondents.