TD Bank Survey Finds Hispanic Monthly Spending Below the National Average
Unavoidable Expenses Leave Many Hispanics Wishing They Were Able to Save More
CHERRY HILL, N.J., April 16, 2015 /PRNewswire/ -- Hispanics spend an average of $300 less per month when compared with the general U.S. population, according to new survey results from TD Bank, America's Most Convenient Bank®.
The TD Bank Saving and Spending Survey questioned more than 1,600 U.S. consumers about their saving and spending habits. The survey found the monthly spending average for Hispanics significantly lower than the general market, spending just $1,291 compared with the national average of $1,608 (excluding rent/mortgage).
"While the survey shows Hispanics are spending less than the national average, they are still struggling to save money, with 43 percent wishing they could save more," said Nandita Bakhshi, Executive Vice President, Consumer Bank, TD Bank. "Managing spending and savings is a delicate balance but it can be achieved with the right plan and budget."
Necessary Expenses and the Influence of Impulse Purchases
Hispanics are burdened with expenses they seemingly cannot escape. The survey results found that almost half (43 percent) of Hispanics wish they were able to save more but have unavoidable expenses, such as groceries and household utilities, which rank highest among top spending categories.
The top spending categories for Hispanics include:
- Groceries and alcohol (26 percent of monthly spending)
- Household utilities and bills (22 percent of monthly spending)
- Loan and line of credit payments (12 percent of monthly spending)
In terms of excessive spending on day-to-day items, 41 percent of Hispanics respondents agreed that they spend too much on restaurants/dining out, followed by coffee/lunches (19 percent) and clothing/shoes (15 percent). When it comes to cutting back, the majority of Hispanics (64 percent) agreed they would cut back on the costs related to restaurants/dining, followed by clothing/shoes (37 percent) and gifts for others (35 percent).
Aside from necessary expenses, the survey found that Hispanics also indulge on impulse purchases. Nearly half (43 percent) of Hispanics claim to sometimes indulge in impulse purchases because they feel they deserve it. Interestingly, 24 percent of Hispanics said they rarely spend impulsively because they try not to spend outside their budget.
Cautious with a Keen Eye on Personal Budgets
When asked to describe their financial character, almost half (40 percent) of Hispanics claim their financial personality/character to be "cautious." In regards to how regularly they are examining their finances, about half (48 percent) of Hispanics check their budget once a week to ensure they are spending within their means. Additionally, 35 percent of Hispanics said they use banking/financial apps as a method to keep track of their budget.
According to the survey, Hispanics said that their parents (38 percent) are the biggest impact on their financial behavior followed by friends (13 percent). Friends and family (29 percent), celebrities (26 percent) and professional financial advisors (21 percent) are the ideal person(s) they would choose to discuss their finances.
Necessary Preparation for a Solid Financial Future
The survey also found that the majority of Hispanics (62 percent) do not have savings or investments to draw from in case of unexpected unemployment. Furthermore, 31 percent of Hispanics report they would be able to live comfortably for six or more months without a source of income.
Although more than half (54 percent) of Hispanics report that they are not currently saving or investing money for retirement, 30 percent claim they feel they are extremely/very confident that they will be able to retire comfortably.
"The key to reaching your financial goals, whether it's saving money for your retirement or just planning for a rainy day, is to have a plan and stick to it," said Bakhshi. "Having a budget will help you manage your expenses and allow you to save money and give you confidence in your financial future."
Full survey results can be found at https://mediaroom.tdbank.com/savingandspending.
Survey Methodology
The study was conducted among a representative group of 1607 consumers (including 80 Hispanic consumers) between March 26 and March 31, 2015. The sample size has a margin of error of +/- 2.4%. The survey was conducted by Vision Critical.
About Vision Critical
Vision Critical provides a cloud-based customer intelligence platform that allows companies to build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight. Designed for today's always-on, social and mobile savvy customer, Vision Critical's technology helps large, customer-centric enterprises discover what their customers want so they can deliver what they need. Unlike traditional customer research, which is slow, expensive and gathers dust on a shelf, Vision Critical's customer intelligence platform replaces static data and cumbersome reports with real-time actionable customer intelligence that companies need to build better products, deliver better services and achieve better business outcomes.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank®, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com.
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SOURCE TD Bank
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