The rising cost of living continues to impact consumer spending, according to recent research, with notable changes in how people approach saving, spending, and managing their finances.

Despite the financial pressures brought about by increasing prices, many individuals remain focused on improving their long-term financial health.

A survey conducted from May to June 2024, sponsored by Paysafe, highlights these evolving consumer behaviours across Europe, North America, and Central America.

Impact of rising expenses on spending patterns

The report reveals that one in four people are currently unable to cover their monthly expenses due to rising costs.

Over the past year, more than half of those surveyed have increased their spending on essentials such as groceries and utilities, likely driven by global inflation.

Despite these challenges, many consumers remain optimistic about their future financial stability, striving to build wealth while managing daily expenses.

Generational and regional financial trends

The study also examines differences in financial attitudes across various regions and generations.

Younger generations are reportedly more focused on leveraging technology to manage their finances, with a strong preference for online payment methods and digital wallets.

In contrast, older consumers continue to rely more heavily on traditional banking methods.

The report highlights that financial habits and attitudes vary significantly depending on location and age group, with regional economic factors also playing a key role.

Online payment preferences evolving

In response to these financial pressures, many consumers are turning to online payment options.

Digital wallets and other cashless methods have gained popularity, especially among younger consumers.

Retailers and businesses are being encouraged to adapt to these shifts, as understanding these preferences can be crucial for retaining and engaging customers in the competitive retail landscape.

Overall, while economic challenges continue to affect spending habits, consumers are still looking towards the future and seeking ways to strengthen their financial positions.

Retailers should take note of these changes in behaviour to adjust their strategies and better serve their customer base in a fluctuating economic environment.