Financial Pressures Adding Up This Holiday Season: Affinity FCU Report Finds

Findings in the latest “Wellbeing and Your Wallet Index” from Affinity Federal Credit Union found a majority of those surveyed plan on cutting back on spending during the holidays, as younger generations are increasingly worried about their financial futures.

The Basking Ridge, N.J.-based Affinity Federal Credit Union ($4.4 billion in assets, 234,859 members) released its most recent survey this week of more than 3,000 people living in its field of membership in the tri-state area. The results published in the “Wellbeing and Your Wallet Index” showed rising costs and/or current market conditions are negatively impacting the way consumers plan to use their money during the holidays.

The survey, which captured the sentiment around the overall financial wellbeing of consumers, found 58% of people in the tri-state area somewhat or strongly agree that finances are a significant source of stress. The findings revealed even more stress felt by Gen Z (67%) and Millennials (68%) as compared to Baby Boomers (44%) and the Silent Generation (31%).

According to Affinity FCU’s AVP, Head of Wellbeing Grant Gallagher, “The findings from the Fall Wellbeing and Your Wallet Index shows many individuals and families are not feeling any relief on the costs of essentials. Our data reveals a growing unease regarding financial stability, as many are adjusting to the realities of tighter budgets and rising expenses.”

Gallagher continued, “Concerns over the economy, increased living costs and student loan repayments resuming are significantly influencing household spending, especially for those who were already living paycheck to paycheck, and these stressors are further compounded as we approach the holiday season. These insights underscore the vital role Affinity plays in providing support and guidance to our members as they navigate these challenging economic times.”

The survey, which was conducted in partnership with Drive Research, also revealed the following:

• Job Security Worries: Amid ongoing concerns about the state of the economy, 14% of respondents say job loss or a career change is among their most significant source of financial stress. With hiring slowing, interest rates remaining high and other headwinds facing businesses, working professionals may realize they need to stick with their current job for the near-term and wait out any possible recession or they may need to consider other work if they’re facing a possible layoff.
• Lower Temps, Higher Costs: As the cold temperatures settle in for the coming months in the northeast, half of respondents worry about home heating costs. Parents with children were significantly more concerned about this expense (55%) compared to households without children (46%).
• Inflationary Pressures: Inflation and groceries remain a consistent source of stress across all generations. 35% of respondents are concerned about having enough money for food in the next month, with the worry being most prominent among Gen Z (42%) and Millennials (44%).
• Emergency Preparedness Fears: Unexpected expenses were significantly more concerning for Baby Boomers (45%) and the Silent Generation (49%). Being able to save was a more significant source of stress for Gen Z (42%) versus older generations.

READ MORE: Affinity FCU’s “Wellbeing and Your Wallet Index” results.