According to the September installment of the Amex Trendex, a monthly trend report from American Express, consumers are shifting priorities to focus on financial wellness, with 62 percent saying they are saving more for the short term and 65 percent saving for long term.
Nearly 60 percent of consumers surveyed said they are more concerned about overall finances since the beginning of the pandemic.
At the same time, consumers told the company they are “recognizing the financial flexibility of credit cards” for everyday purchases and spending. Millennials in particular said they are 1.4 times more likely than Baby Boomers to use a credit card to purchase streaming services.
Overall, 53 percent of consumers prefer to redeem credit card rewards for cash back, an increase from 44 percent prior to the pandemic. This sentiment extends to getting rewards on everyday essentials as groceries and gas continue to be a top spending category for the American Express customer.
Notably, Millennials are also more focused on credit scores with 30 percent saying they are now more likely to check their credit scores, in comparison to the beginning of the coronavirus pandemic. Further, 64 percent of Millennial respondents said they are looking for ways to improve credit scores.
Concurrently, Millennials are looking at vacation days a bit differently. While 46 percent of Millennials told the company they are taking the same or even more days off than last year, 38 percent are planning to take this time as mental health days.
While the company noted its customers continue to prioritize travel, consumers reported changed behaviors in how they now plan to travel. Overall, 67 percent of respondents said “their definition of taking a vacation has changed” this year and 39 percent said they have explored local destinations that they would not have otherwise visited.
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