By: Daryl Tolliver
A monthly budget has long been a popular, effective and highly utilized financial tool that Americans of all income brackets have relied upon to manage their income. In addition, budgets are used for a variety of reasons, whether it involves paying off debt, saving for a down payment on a home or planning a wedding. As many households continue strive to overcome hardship and regain a position of financial strength, it appears that more individuals are turning to their banks for assistance.
The results of the annual Chase Pulse of the Consumer Survey reveal that 70 percent of Americans consider online banking, credit card websites or a combination of the two to be valuable tools in helping them manage their money. According to the study, 77 percent of those between ages 18-34, and 71 percent of consumers between ages 45-54 cited online banking as the most helpful channel for organizing their finances. Sixty-two percent of those between 35-44 gave a similar response.
In addition, 24 percent of all respondents agreed that bank mobile applications, credit card apps or both were also becoming a more instrumental budgeting tool.
Americans name 'saving money' as their priority
Additional findings reveal that in addition to budgeting, consumers' primary financial concerns revolve around their savings accounts and ability to build wealth. Although 74 percent of respondents cited their ability to save as their most pressing issue, only 36 percent have contributed money to their accounts since the economic downturn. In addition, 53 percent of Americans said they are consistently seeking out new ways to save on their everyday purchases.
"We're encouraged that consumers think the economy and their personal finances are on the upswing, but there is still work to be done," said Eileen Serra, CEO of Chase Card Services. "Consumers continue to need the correct financial tools and services to better manage their everyday expenses - that is a critical first step to gaining full control over their financial future."
The results of the study demonstrate that community banks and credit unions have a prime opportunity to inform frugal consumers about offerings that will allow them to save money, such as cash back reward programs, free checking and reasonable overdraft privilege programs. Marketing these programs online or via mobile applications can help local communities reach out to consumers who are relying on these channels, rather than branch services, to complete financial transactions.