An analysis on how people are spending, saving, and thinking about money going into 2023, based on Cleo user data from January 1st until now.
This year, Adidas Sambas swept the nation thanks to Bella Hadid’s army of TikTok girlies, Beyonce stopped the world again with Renaissance, and we all blushed while ordering a “Negroni Sbagliato” at the bar.
Throughout all of the iconic eras of 2022, the team here at Cleo noticed some trends that we think deserve their own moment in the spotlight.
People in New York City, Denver, and Pittsburgh spend the most on recreation
20% of the money they spend monthly goes towards eating out, entertainment, and shopping
People in Oklahoma City, Fort Myers (FL), and Lexington (KY) spend the least on recreation.
10% of the money they spend monthly goes towards eating out, entertainment, and shopping.
Cleo users spent over $36M at secondhand merchants this year. The average spend per individual transaction at secondhand merchants was $163.
The top three most popular secondhand retailers are eBay, Goodwill and Poshmark.
26% of shoppers using Buy Now, Pay Later services use the installment loans to buy fashion and beauty products.
Cleo users shared these top tips for finding great deals while thrift shopping:
Savvy thrift shoppers are turning to larger chains like Goodwill (64%) and smaller local vintage shops (58%) to get their secondhand fix.
Go early in the morning when the newer donated items are put out.
Go through the boxes at stores because you never know when you’ll find a gem at the bottom of the box.
Check out the deal of the day at your local thrift shop, which often happens a couple times a month (they might even have a half off sale!).
Don’t be afraid of “old” vintage pieces; they are actually better quality than fast fashion items. And don’t forget that there are really great secondhand furniture pieces too.
Shop based on the tag color of the day, where there is an added discount on already low prices.
Gen Z who are actively saving money put away an average of $750 a month into their savings and investments accounts.
Gen Z are more likely to invest in crypto and stocks than other generations with 22% of Gen Z investing each month vs 19% of millennials. With more time to ride out market volatility, it’s no wonder that younger generations are more likely to choose risky investments like stocks and crypto.
Despite federal student loan repayments being paused until June 2023, people are still paying off other types of student loans. Among those currently repaying student debt, the average monthly repayment is $200 per person.
The student loan borrower typically lives in a big city. New York City, Chicago and Atlanta are the three cities with the most student loan borrowers per capita.
For 2022, 42% of people said that paying off debt was their top priority. Saving for the future came in at 23% and making a large purchase like a home or car at 16%.
For 2023, 36% of people said that paying off debt will be their top focus, with saving for the future at 26% and making a large purchase like a home or car increasing from the previous year to 26%.
The number one action that people said they will take to hit their money goals in 2023 is to use a budgeting and savings app (35%).
Paying off debt and changing their money mindset tied for second place at 27%.
A whopping 74% of people said that cost of living increases are impacting their spending decisions for 2023.
73% of people said that money has negatively impacted their lives this year.
46% of people said the best word to describe the role of money in their life right now is “Anxious”, followed by “Sad” at 22% and “Excited” at 13%.
Want to get more personal? Check out Cleo's Money Rewind mode to see your personalized spending insights from 2022.
Download Cleo for free on the Apple Store or Google Play Store, connect your bank account, and type “money rewind” in the chat tab. Share your favorite insight and tag us on IG or Twitter for the chance to win a cash prize.