Finance and the Everyday Consumer - US - December 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Survey methodology
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Consumer spending keeps growing as Americans become wealthier
• Aging boomers shift spending share to 55-65 year olds
• Personal savings shrinks as consumers spend more
• Consumer debt grows with inflation while mortgage debt finances increased buying power
• Blacks and Hispanics differ culturally in spending habits
• Women more reactionary when it comes to gas prices and interest rates
• Children in the household drive expenditures
• Gas prices likely to stay high, while interest rates stay reactive
• Background Factors
• Average consumer expenditures
  • Figure 1: Average consumer expenditure, at current and constant prices, 2002-07
• Consumer confidence
  • Figure 2: Consumer confidence levels and aggregate consumer expenditures, 2001-06
  • Figure 3: Change in aggregate consumer expenditure, by category, 2003-04
• Aging Boomers boost the spending of over-55s
  • Figure 4: Growth of the U.S. population, by age, 2002, 2007 & 2012
  • Figure 5: Share of total aggregate consumer expenditure, by age, 2001 and 2006
• Hispanics grow past black consumers in spending
  • Figure 6: Population by race and Hispanic origin, 2002-12
  • Figure 7: Share of total aggregate consumer expenditure, by race/ethnicity, 2001 and 2006
• Americans becoming wealthier
  • Figure 8: Distribution of households, by income, 2003 and 2006
• Nearly all parties financially aware
  • Figure 9: Financially responsible party, by gender, November 2007
• Events impacting personal finance
  • Figure 10: Events affecting personal finance, November 2007
• Attitudes towards spending and personal finance
  • Figure 11: Attitudes towards personal finance, May 2006-June 2007
  • Figure 12: Attitudes toward spending, November 2007
• Gender
  • Figure 13: Attitudes towards personal finance, by gender, May 2006-June 2007
  • Figure 14: Attitudes towards spending, by gender, November 2007
• Age
  • Figure 15: Attitudes towards personal finance, by age, May 2006-June 2007
  • Figure 16: Attitudes towards spending, by age, November 2007
• Household income
  • Figure 17: Attitudes towards personal finance, by household income, May 2006-June 2007
  • Figure 18: Attitudes towards spending, by household income, November 2007
• Race/ethnicity
  • Figure 19: Attitudes towards personal finance, by race/ethnicity, May 2006-June 2007
  • Figure 20: Attitudes towards spending, by race/ethnicity, November 2007
• Presence of children in the household
  • Figure 21: Attitudes towards personal finance, by presence of children in household, May 2006-June 2007
  • Figure 22: Attitudes towards spending, by presence of children in household, November 2007
• Economic Indicators
• Summary
• Gas prices
  • Figure 23: Consumer confidence levels and change in annual average gas prices, 1999-2007*
  • Figure 24: Consumer expenditure on gasoline and motor oil, at current and constant prices, 2002-07
  • Figure 25: Consumer expenditures on gasoline and motor oil, as a percentage of total expenditures, 2000-06
• How gas prices affect spending
  • Figure 26: Expected impact of gas prices on spending, November 2007
  • Figure 27: Changes in spending as a result of gas price rises, by household income, November 2007
  • Figure 28: Changes in spending as a result of gas price rises, by gender, November 2007
• Increased spending
  • Figure 29: Changes in spending as a result of gas price rises, by age, November 2007
• How consumers have adjusted to gas prices
  • Figure 30: Changes in spending due to rising gas prices over the past year, November 2007
  • Figure 31: Changes in spending due to rising gas prices over the past year, by gender, November 2007
  • Figure 32: Changes in spending due to rising gas prices over the past year, by age, November 2007
  • Figure 33: Changes in spending due to rising gas prices over the past year, by household income, November 2007
  • Figure 34: Changes in spending due to rising gas prices over the past year, by race/ethnicity, November 2007
  • Figure 35: Changes in spending due to rising gas prices over the past year, by presence of children in household, November 2007
• Interest rates
  • Figure 36: Consumer confidence levels and national federal funds rates, 1998-2007*
  • Figure 37: Consumer expenditures on mortgage interest and charges, at current and constant prices, 2001-06
• How interest rates affect spending
  • Figure 38: Changes in spending due to changing interest rates, November 2007
  • Figure 39: Cuts in spending due to rising interest rates, by age, November 2007
  • Figure 40: Cuts in spending due to rising interest rates, by household income, November 2007
  • Figure 41: Cuts in spending due to rising interest rates, by presence of children in household, November 2007
  • Figure 42: Cuts in spending due to rising interest rates, by race/ethnicity, November 2007
• Increased spending
  • Figure 43: Increase in spending due to falling interest rates, by age, November 2007
• Unemployment
  • Figure 44: Consumer confidence levels and annual unemployment rates, 1999-2007*
• How unemployment affects spending
  • Figure 45: Changes in spending due to changing rates of unemployment, November 2007
• Stock market
  • Figure 46: Consumer confidence levels and the dow jones industrial average, 1998-2007*
• How stock market performance affects spending
  • Figure 47: Changes in spending due to the changing stock market, November 2007
• Sources of and interest in financial news
  • Figure 48: Sources of and interest in financial news, November 2007
  • Figure 49: Sources of and interest in financial news, by gender, November 2007
  • Figure 50: Sources of and interest in financial news, by age, November 2007
  • Figure 51: Sources of and interest in financial news, by household income, November 2007
  • Figure 52: Sources of and interest in financial news, by race/ethnicity, November 2007
• Savings & Debt
• Summary
• Personal savings
• Consumer debt
• Personal savings
  • Figure 53: Aggregate U.S. personal savings, at current and constant prices, 2002-07
  • Figure 54: Aggregate personal savings, by quarter, 2003-07
• Individual savings rate
  • Figure 55: Changes in salary and saving position in past year, November 2007
  • Figure 56: Changes in salary and saving position in past year, by gender, November 2007
  • Figure 57: Changes in salary and saving position in past year, by age, November 2007
  • Figure 58: Changes in salary and saving position in past year, by household income, November 2007
  • Figure 59: Changes in salary and saving position in past year, by race/ethnicity, November 2007
  • Figure 60: Changes in salary and saving position in past year, by presence of children in household, November 2007
• Reasons for negative savings
  • Figure 61: Reasons for negative savings, November 2007 Figure 62: Reasons for negative savings, by age, November 2007
  • Figure 63: Reasons for negative savings, by household income, November 2007
  • Figure 64: Reasons for negative savings, by race/ethnicity, November 2007
  • Figure 65: Reasons for negative savings, by presence of children in household, November 2007
• Consumer debt
  • Figure 66: U.S. debt per consumer unit, at current and constant prices, 2002-07
  • Figure 67: Growth of total outstanding consumer debt and home mortgage debt, 2000-07*
  • Figure 68: Aggregate U.S. consumer debt and debt service as percentage of income, 2002-07*
• Types and amounts of debt
  • Figure 69: Types of loans carried, May 2006-June 2007
  • Figure 70: Average levels of indebtedness, by type of debt, November 2007
  • Figure 71: Average levels of indebtedness, by type of debt, by age, November 2007
  • Figure 72: Average levels of indebtedness, by type of debt, by household income, November 2007
  • Figure 73: Average levels of indebtedness, by type of debt, by presence of children in the household, November 2007
• Future Trends
• Gas prices
• Interest rates
• Mortgage crisis
• Economy braces for consumer pullback