Consumers changing spending patterns

04.15.09
By Miriam Lamey

April is not just reserved for Earth Day - it is also Financial Literacy month. While many Americans are making an extra effort to save and better manage their finances, a new survey reveals that they're not all planning for their financial futures.

In recognition of Financial Literacy month, Capital One surveyed 1003 Americans, focusing on topics such as personal spending habits and savings goals and learned that quite a few respondents are making efforts to save.

Over half of those surveyed have been clipping coupons to save on shopping. About the same percentage has cancelled or postponed vacation plans.

Some people are eliminating luxuries to save money. Sixty-two percent indicated that they are watching their entertainment spending, which encompasses movie or concert tickets and book purchases. A further 68 percent have chosen to dine out less frequently.

These actions can help reduce spending and add more money to your bank account, but Capital One's survey revealed that many are still struggling to do so - 47 percent of respondents are adding less money to their savings account.

While the current financial turmoil has some individuals focusing on short-term debt reduction and savings, keeping an eye on your credit score now may pay benefits in the long-run when considering buying a house or car.

Capital One found that consumers are generally aware they can get an annual credit report for free, but only 41 percent of respondents actually review it. Even more surprising in this economic environment, just about 20 percent have never checked their credit report.

By reviewing your credit report regularly, consumers are better prepared to catch and correct any errors and keep an eye out for identity theft - a trend on the rise in the poor economy.

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Spend versus save is on the mind of many Americans