Walking the Pocketbook Tightrope: How Consumers Are Balancing Uncertainty and Spending | PYMNTS.com

Highlights There's a notable shift in consumer financial habits, with a declining number of "planners" and a rise in "reactors" across income levels, including those earning $100,000 or more annually. This indicates a growing financial strain and a move towards managing finances reactively rather than proactively. Reliance on credit is increasing for both impulse and emergency purchases of $250 or more. Credit cards and buy now, pay later (BNPL) plans are frequently used for unplanned retail spending, highlighting a growing dependence on credit solutions beyond traditional cards. Significant generational differences exist in financial management approaches, with a majority of Gen Z consumers identified as "reactors" while baby boomers are predominantly "planners." Millennials and parents with children are also leading in making impulse purchases. When economic winds shift, so do consumer spending habits. But not always in expected ways. Amid tariffs, stubborn inflation and higher livin...