Lessons from the Recession: USAA Survey Finds Consumers Becoming Better Budgeters

New Mobile Budgeting Tools Help Consumers Become Smarter Shoppers

SAN ANTONIO--(BUSINESS WIRE)-- A recent USAA Bank survey indicates that many consumers are putting into practice personal finance lessons learned during the past few years, with nearly half (49 percent) saying that keeping a budget has become a bigger priority than it was before.

When asked about their budgeting personality, three-fourths of respondents described themselves as a “penny pincher” (40 percent) or a “big picture budgeter” (36 percent). And nearly nine out of 10 (86 percent) said they always or often stick to specific targets within their budget for everyday expenses.

The survey also uncovered that even the best budgeters benefit from having their financial information at their fingertips. Respondents indicated they’re more likely to make better budget decisions if they had access to real-time updates on their mobile phones. For instance, nearly 70 percent said they would decide against purchasing a $40 pair of jeans if they saw on their mobile phone that they had only $20 left in their monthly clothing budget, while nearly one in four (24 percent) non-budgeters said that having updates on their mobile phone would increase their likelihood to develop a budget.

“As costs for necessities like gas and groceries continue to rise, it’s more important than ever for consumers to keep a watchful eye on their spending habits,” said Jeff Easley, executive director for USAA Bank. “The first step in avoiding budget missteps, like overspending, is to use simple mobile tools that work for you and your family.”

USAA^® Money Manager Goes Mobile – Providing On-The-Spot Info

To help members manage their finances, USAA recently launched a mobile version of USAA^® Money Manager, a free personal budget tool that provides on-the-spot spending information using an iPhone® or Android™ mobile device, such as:

• USAA and non-USAA account balances, including transaction history for up to 60 days.
• Charts that categorize spending to show how much of a pre-set budget is going toward expenses like gas, groceries, utilities and entertainment.
• Real-time updates for each pre-set spending category. For example, members can see if there’s still room in their dining-out budget for a $5 latte or a $25 dinner.

Click here to learn more about USAA^® Money Manager.

Additional USAA Bank Survey Findings

• Men are more likely than women to stray from their budget (28 percent vs. 22 percent).
• Women are more likely than men to feel guilty (63 percent vs. 47 percent) and anxious (47 percent vs. 27 percent) when they overspend.
• One in 10 consumers admits to not having a budget.
• The majority of respondents were more concerned with physical health (37 percent) than fiscal wellbeing (13 percent).

Survey Methodology

The survey was commissioned by USAA to provide information on consumer budgeting habits. InfoGroup/Opinion Research Corporation (ORC) conducted the survey using a Random Digit Dial (RDD) telephone methodology. Interviews were conducted during the period of April 9-11, 2011, with 1,008 adults in a random sample of households (one interview per household). ORC weighted the survey results by four demographic characteristics – age, sex, geographic region and race – to ensure reliable and accurate representation of the total U.S. population 18 years of age or older. The raw data are weighted by a custom-designed program which automatically develops a weighting factor for each respondent. This report is based on a weighted total sample of 1,000 respondents. The sampling error associated with a sample size of 1,000 is no more than plus/minus 3.1 percentage points at a 95 percent confidence level.

About USAA

USAA provides insurance, banking, investment and retirement products and services to 8.2 million members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving or have honorably served our nation in the U.S. military – and their families. For more information about USAA, or to learn more about membership, visit usaa.com.

CONTACT:

USAA
Natasha Collins, 214-665-1327
natasha.collins@fleishman.com
USAA on Twitter: usaa

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