Across Europe and the US, many consumers are frustrated by headlines about the excellent state of the economy – with low unemployment and high wages – while seeing their own buying power dwindle. Tension is building between pressed low-to-middle-income consumers and wealthier households, many of whom are finding financial security in homeownership and child-free lifestyles.

Money struggles aren’t stopping consumers from setting ambitious savings goals. People worldwide are looking to pad their emergency funds, retirement savings or even holiday cash. To serve these individuals, forward-thinking finance brands are increasing returns on investment from savings with strategies like tech-assisted investing and competitive interest rates.

On social media, consumers are responding to financial turbulence with saving challenges, which involve pausing spending on tempting categories for a set period. These challenges are particularly popular among young people, who are looking for recognition from their peers for their money smarts – a trend discussed in 10 Youth Trends to Watch 24/25.

To reduce costs, 79% of Americans are interested in “trading down” – buying fewer items or switching to more affordable retailers or brands (McKinsey, 2023). Wallet-friendly retailers (from China’s Temu to America’s Target) are bolstering their reputation among cost-conscious consumers, as are initiatives that streamline the process of finding enviable deals.

Spotting consumers’ verve for discounts, many brands are choosing to price products according to demand – also called dynamic pricing. While only 8% of Brits say they’d pay more for food and drink during busy periods (Barclays, 2023), smart retailers are transparently leveraging fluid pricing trials, such as offering discounts for perishables nearing their expiry date.

The desire to attain an aspirational luxurious life is leading some people to spend beyond their means and into credit card debt (see Key Stats). It’s driven, in part, by social media “wealth porn” and the illusion that everyone can afford expensive goods – a phenomenon leading some consumers to prioritise things over experiences.

When it comes to consumers who prioritise spending on experiences, many are shunning pandemic-era indulgences – like streaming services and virtual fitness. “Instead, [spending is] about all of the things we were starved for: human interaction, socialising, travel,” says Ulrike Malmendier, economics and finance professor at the University of California, Berkeley.

Consumers’ money smarts haven’t improved alongside the popularity of finance influencers – a trend we’ve tracked since our 2021 Macro Trend Budget (Re)valued. While money content may be popular on social media, more brands are recognising the need for educational content in other formats. Cue a rise in school lesson plans, books and apps offering trustworthy financial advice.

Digital payment services – like Apple Pay and Cash App – are some of young consumers’ favourite brands. They’re increasingly trusted across generations: 75% of Americans believe digital payments are as secure as using debit and credit cards (Motley Fool, 2024). Banks are responding by introducing innovative services, from money-management bots to seamless international payments.

Globally, 69% of consumers say that buying second-hand clothing or using repair services could save them money or has already done so (Klarna, 2024). Some see this as a reason to frequent thrift stores and repair services, while others are starting second-hand side hustles. These dual forces are pushing second-hand economies to mature and develop rapidly.