CHERRY HILL, N.J., Oct. 23, 2017 /PRNewswire/ -- Americans are
spending with confidence, according to TD Bank's second annual
Consumer Spending Index, which polled more than 1,000 consumers
across the nation to uncover Americans' spending habits. Yet, while
they rack up credit card rewards points with sensible spending and
responsibly manage month-to-month debt, almost one fifth of
consumers leave these rewards unclaimed.
Consumers Are Spending, But Not Swiping
The average survey respondent earned a household income of
approximately $62,000 a year while
spending more than $25,000 annually
on bills and purchases, including more than $2,000 on travel and $1,700 on dining.
TD Bank's newly-enhanced TD Cash credit card was redesigned with
the spending patterns of today's customers in mind. After
incorporating customer feedback in the design of the card, TD
increased the rewards program from 2% to 3% cash back for every
dollar spent on dining, and added a new accelerated category with
2% cash back at grocery stores. The card also offers 1% cash back
for all other purchases. With valuable cash back options available
from credit cards today, Americans shouldn't be afraid to swipe,
yet some are still relying on cash.
- Forty-six percent use debit or check card as their primary
method for making purchases and 21 percent use cash, leaving
unearned rewards on the table
- Millennials spent nearly $300
more than the average respondent on dining, a total of
approximately $2,000 annually
- Men picked up the restaurant tab more often than women
($2,000 annually versus $1,400), so perhaps chivalry isn't dead after
all
By mapping their spending across categories, consumers can
determine the credit card that best fits their spending habits and
maximizes their rewards earning potential.
"If I could offer advice to consumers who use a credit card,
it's to be sensible in spending and mindful about cashing in
rewards," says Julie Pukas, Head of US Bankcard and Merchant
Solutions at TD Bank. "It takes smart spending to use your credit
card for daily purchases – like groceries and dining – and
discipline to ensure you pay off that balance at the end of each
month, but for those who can make it work, it's a very savvy credit
strategy that makes your credit card work for you."
Cardholders are Reaping Rewards with Purpose
Despite reliance on spending with cash and debit, consumers
understand the value of being rewarded for the purchases they're
making the most often.
- More than half of consumers polled (53 percent) would alter
purchasing decisions based on rewards offers
- Most (84 percent) have access to credit card rewards, primarily
using them for cash back (47 percent), paying their monthly balance
(11 percent) and on merchandise or travel (26 percent)
However, those who earn rewards don't always handle them with
care. In fact, one-in-five consumers (18 percent) have let credit
card rewards expire.
- More Millennials have a rewards credit card (87 percent) than
other generations, yet they're the most likely to let rewards go to
waste
- Almost one-third (30 percent) of Millennials have let rewards
expire, more than Gen-X (19 percent) and Baby Boomers (8
percent)
With simple reward applications that take only a few clicks,
like putting cash back rewards towards your monthly bill or
depositing it into your savings, consumers can stop leaving cash on
the table.
Survey Methodology
The study was conducted among a
nationally representative group of consumers from March 22 – March 28,
2017. The sample size of 1,002 has a margin of error of +/-
3.1 percent. Data has been weighted by age, gender and region to
reflect the populations. The survey was hosted by global research
company MARU / Matchbox.
About MARU / Matchbox
MARU/Matchbox is a professional
services firm dedicated to improving its clients' business
outcomes. It delivers its services through teams of sector-specific
research consultants specializing in the use of Insight Community
and Voice of Market technology.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is
one of the 10 largest banks in the U.S., providing more than 9
million customers with a full range of retail, small business and
commercial banking products and services at more than 1,200
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida. In addition, TD Bank and its
subsidiaries offer customized private banking and wealth management
services through TD Wealth®, and vehicle financing and
dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J. To learn more,
visit www.tdbank.com. Find TD Bank on Facebook
at www.facebook.com/TDBank and on Twitter
at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank
of Toronto, Canada, a top 10
financial services company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock exchanges under the ticker
symbol "TD". To learn more, visit www.td.com.
1Purchases include groceries, gas, dining, clothing,
electronics, entertainment, travel, etc.
2Bill payments include cable, cell phone, utilities,
etc.
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SOURCE TD Bank