A new TD Bank study has found that consumer spending habits are returning to their pre-pandemic norms. The bank’s annual Consumer Spending Index also highlights recent spending trends, which may fuel overspending when added with a return to old habits.
TD Survey Reveals a Return to Pre-Pandemic Spending
TD Bank has released the results of its 2022 Consumer Spending Index study. The annual Consumer Spending Index, conducted in partnership with ENGINE, surveyed 1,007 Americans 18 years of age and older who had at least one credit card.
The most significant finding from the study was a shift back towards pre-pandemic spending habits. Dining out at restaurants landed among consumers’ top spending categories. The survey also found a rise in spending on entertainment, fast food, and coffee compared to the previous year.
The 2022 TD Bank Consumer Spending Index study found the following:
- 34% of respondents are looking forward to spending money on travel in 2022
- 22% of respondents are looking forward to making home improvement purchases
- 15% of respondents plan to spend on new technology in 2022
As mentioned, the study also hints at a trend towards consumer overspending. Since last year, spending on dining out has tripled, with 30% of respondents noting they splurge on meals outside the home, versus 10% last year. Additionally, 10% of those surveyed admit to overspending on entertainment.
Other areas of overspending include:
- 54% of those surveyed admitted to overspending on shopping
- 29% of respondents attribute overspending to shopping in-person (vs. 12% in 2021)
Is Inflation Causing Overspending?
Consumers may also be inadvertently spending more on routine expenses due to inflation. According to the Bureau of Labor Statistics, groceries, the top spending category in TD’s survey, experienced a price increase of 7.4% year-over-year in January.
“A variety of factors are hitting household budgets, so it’s more important than ever for consumers to be vigilant about tracking their spending and using credit responsibly,” said Paramita Pal, Head of U.S. Bankcard at TD Bank, in a press release. “And don’t leave money on the table. Nearly a quarter of rewards cardholders surveyed said they have let their rewards expire, primarily because they forgot about them. Smart spenders take advantage of card programs that make redeeming cash or points easy and don’t have expiration dates for rewards.”
About TD Bank
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9.7 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. The bank features a variety of credit cards for personal and small business use, including the unlimited 2% cash back TD Double Up Card.
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