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As inflation soars, many Americans are having regrets about how they’re spending their money.
According to a new survey from financial services company Bankrate (RATE), 77% of people in the U.S. have financial regret about their spending in the past 12 months — and a worrying 40% of those with regrets said they’ve made no progress in saving money in the past year.
Bankrate (RATE) found that the top regret for those who wished they tightened their purse strings more is not saving enough for retirement, followed by concerns about not saving enough for emergencies.
Unsurprisingly, the survey found that those closer to retirement are more worried about it, with 37% of baby boomers regretting not saving early enough. Twenty-six percent of Gen Xers say the same, compared to just 13% of millennials and a mere 5% of Gen Z.
Bankrate also discovered that Americans are more likely to regret lacking savings than taking on too much debt. Another common financial regret, the survey found, is not saving enough for children’s education, as college costs soar.
“Saving is a lot less painful than dealing with the debt that results when you don’t have it,” Bankrate chief financial analyst Greg McBride said in a press release.
When asked why they haven’t saved enough, 45% of those surveyed cited inflation and high prices as the main factors. Another 18% cited their current jobs. Others cited high interest rates, a tough housing market and complicated family dynamics.
McBride advises those worried about saving enough to try to automatically transfer more money from their paychecks each time they receive one. “Saving for retirement and emergencies can be automated through payroll deduction, direct deposit, and automatic transfers,” he said. “Start modestly and after a couple of pay periods you won’t miss what you don’t see.”
