Knowledge Center
Spending, Saving and Inflation – Planning Your Finances in an Unsettled Economy
educating-myself | Read Time: 3 minutes
By Shari Kruzinski | Published: October 2022
As the economy continues to be volatile, rising prices for just about everything has remained consistent, if not constant. And when it comes to spending and saving in this inflationary environment, Greater Philadelphia and Delaware region residents certainly have their concerns.
A new WSFS Bank Money Trends study found that nine in 10 people in the region are at least slightly worried about the impact of rising prices in the next year, and more than half (54%) are very or extremely worried.
The good news? More than one-third (37%) of people in the region have increased their savings over the last year, for many reasons. No matter what motivates you to save, saving more now is a smart move for your financial future.
Here are steps you can take to stretch your spending power and build savings, whether you’re planning for a large purchase, setting a holiday budget amid rising prices, or laying a foundation for a stable financial future.
Review and Adjust Your Spending Habits
The Money Trends study found that more than four in 10 regional residents are actually spending more than they did last year, and 62% cited rising costs and inflation as the primary reason.
Knowing that finding deals on everyday items like groceries, gas and household needs is much more difficult, take a hard look at your non-essential spending and cut back where you can. Just under half (46%) of your regional neighbors who are saving more are doing so by cutting out non-essentials, so while it may seem difficult at first it is doable.
Making More Money? Bank It.
Nearly as many people (45%) reported that their income has increased, enabling them to save more this year. While everyone’s income situation is different, if your income does increase, try to keep your spending levels where they are now and save the extra money in your paycheck.
Reset Your Goals
Inflation does not make saving money easy, but with a solid plan in place, attaining your savings goals can be easier than you think. It’s always a good idea to check in with your banker or financial planner to make sure you are on track to achieve your next financial goal, whether it’s to buy a car or house, start a family, be prepared for a money emergency, or even retire.
In this current economic environment, it’s even more important to stay on top of your finances, so leverage the experts that are available to you.
Re-Think Your Holiday Spending
While the Money Trends study found that four in 10 regional shoppers plan to spend less on gifts than they did last year, there may be an opportunity to stretch those budgets for the benefit of your own wallet and those of small businesses in the region.
Forty-four percent of respondents also said they were going spend less money on travel this holiday season, so if you’re planning to stay home this holiday season spending your gift budget locally can help spread holiday cheer while supporting your neighbors’ small businesses.
About the Author – Shari Kruzinski
Shari Kruzinski is Executive Vice President and Chief Customer Officer at WSFS Bank. Her career spans more than 30 years in the banking industry, including 31 years with WSFS. In her current position, Shari leads the Bank’s Customer division including Customer Experience and enterprise-wide Customer initiatives. She also oversees the Bank’s retail offices, contact center, and retail operations.
Related Articles
Together, Holiday Shoppers and Small Businesses Can Make the Season Bright
There is a lot of buzz around the holidays this year, with rising costs, inflation and managing finances on the minds of consumers and local small business owners alike. And while the crunch on finances can be daunting, there are steps we can all take to meet these challenges and support our communities and each other.
Read More
The Effects of Inflation, Rising Costs and Increasing Interest Rates Driving Regional Consumers to Re-Think Their Future Finances
WSFS Bank’s annual Money Trends study found that nine in 10 people are worried about affording price increases in the next year, leading to expected changes in how they spend, save and even plan for significant life milestones.
Read More
Considerations When Opening and Using a Credit Card Amid Inflation and Rising Interest Rates
If you are in the market for a credit card, but feel you need to know more about their benefits and how to choose one that best fits your needs, you are not alone.
Read More
How to Fine-Tune Your Budget to Account for Rising Costs
Inflation and rising interest rates have been top-of-mind for many consumers in recent months, as the cost of everything from groceries to gasoline, and cars to houses, has increased. A recent WSFS survey found that 44% of Greater Philadelphia and Delaware region respondents are not confident they can keep pace with inflation’s impact on goods and services. And as the Federal Reserve continues to aggressively raise interest rates to combat soaring inflation, many consumers are left feeling a major impact on their wallets.
Read More
With Interest Rates Rising, Now is the Time to Fine Tune Your Credit and Spending Habits
If you’ve been paying attention to financial news lately, topics such as inflation, rising interest rates and the housing market have been the predominant headlines. While much of the focus on rising interest rates has centered around how potential homebuyers are impacted and why they should act now to avoid paying more for the same home later, consumers should also be looking closely at any current debt and spending habits, too.
Read More