You may have noticed lately that when it comes to your finances, "the math is not mathing.”
You’re earning the same amount, or possibly even more, but your money seems to get you less.
Often, it takes an “oh sh*t” moment to notice the change. Maybe for you it happened at the gas station, when what used to cover your full tank only got you 3/4 of the way there. Or maybe you were buying your same old groceries and got a rude reality check when the cashier read out your total.
So what's to blame devaluing for your dollar? That would be inflation. Simply put, inflation occurs when the value of your money decreases over time. As a result, the same amount of money can buy less than it could before.
As inflation continues to rise, Gen Z and Millennials are increasingly feeling its effects in their day-to-day lives.
To understand how inflation is impacting the personal finances of Gen Z and Millennials, Cleo conducted a survey among 1,000 Americans aged 18-44 in April 2023. This is what we found:
The Rise of Buy Now, Pay Later Services
- 19% of people stated that they now use Buy Now, Pay Later services regularly due to inflation.
- 29% of respondents revealed that they rely on Buy Now, Pay Later services when they require assistance affording essential items.
- 52% of respondents expressed intentions to increase their usage of Buy Now, Pay Later services in the future.
Inflation is Affecting How We Eat
- Food insecurity has outpaced shelter concerns: 52% of respondents cited buying groceries as their biggest worry. Transportation costs followed at 22%, with rent coming in at 13%.
- Additionally, 38% of people are worried they won't be able to afford groceries because of inflation in the future.
- Consumers are rethinking how they shop for everyday items: 31% of people changed the way they shop due to higher grocery prices, and 46% said it greatly affected their household budget.
- The Buy Now, Pay Later trend moves from high ticket items to the cereal aisle: 43% of consumers used Buy Now, Pay Later services to shop for groceries.
- Even those who are employed are looking for additional financial assistance with food: 26% of employed respondents have turned to government assistance programs such as SNAP, food banks, or food stamps for groceries in the past year.
At Cleo, our goal is to create a world where people stress less about money. We can’t control the costs, but we can assure you that you’re not alone and give you the tools you need to weather the storm.
Whether you’re looking to build a budget, start saving, get quick cash advance when you need it, or just laugh along as Cleo roasts your spending in chat, we've got you covered.
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Big love. Cleo 💙