Santander US Paths to Prosperity Research Finds Consumers Resilient Though Pressures Mounting

Santander Holdings USA, Inc. (“Santander US”) today announced findings from a new survey that shows American consumers are optimistic about their futures despite mounting financial pressures. The results found 68% of middle-income households believe they are on the right track toward achieving financial prosperity, which remains unchanged from Q2.

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(Graphic: Business Wire)

However, prolonged inflation and the resumption of federal student-loan payments are clear economic stressors for middle-income households. More than 7 in 10 say they are unable to save as much as a result of inflation, which remained the number one obstacle to achieving prosperity. Approximately a third of respondents – across all generations – are responsible for student-loan debt, with 69% of this group stating that the resumption of federal student-loan payments is a challenge to achieving financial prosperity.

The study also revealed that many middle-income Americans are missing out on an opportunity to offset these inflationary pressures by earning more on their savings. Interest rates on savings have climbed steadily to the highest levels in decades, yet two-thirds (66%) of middle-income Americans have not moved money into higher-yielding accounts to take advantage of these rates since the beginning of 2022. A lack of financial knowledge may be a contributing factor to the inertia. Just 1 in 10 respondents (11%) could answer four questions about savings accounts correctly. Those who responded to all correctly (41%) were more likely to have moved money to take advantage of higher rates versus those who answered all questions incorrectly (25%).

“Having the information needed to make important financial decisions is crucial for reaching one’s financial goals,” said Tim Wennes, Santander US CEO. “At Santander, we recognize our important role in providing customers with the support and guidance they need — in a way that is simple and easy to understand — so they can take control of their decision-making. Conducting this research each quarter provides us with essential insights, so that we can best meet our customers where they are in their journey to financial prosperity.”