Santander US Middle-Income Survey Finds Majority of Americans Remained Optimistic in 2023, See Headwinds Ahead in 2024

Santander Holdings USA, Inc. (“ Santander US”) today announced findings from a new survey that shows middle-income American consumers were feeling optimistic in the fourth quarter of 2023, with 70% of respondents believing they are on the right track toward achieving financial prosperity and 80% believing they would achieve financial prosperity in the next 10 years. Less than a quarter described themselves as “financially insecure,” down four percentage points from the first quarter. Meanwhile, seven in 10 said they were spending at least as much as the previous year if not more on holiday gift giving, and a majority said they believed their gift giving reflects their own financial prosperity.

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Despite the optimistic view, middle-income Americans acknowledge there are headwinds with two-thirds reporting that they expect the United States will enter a recession in 2024. The majority of respondents (57%) say they have already delayed a major financial decision due to concerns about a recession. Inflation remains a primary concern along with rising healthcare premiums and student debt. In fact, while the majority of middle-income Americans (62%) are setting financially related goals, only one third are highly confident they can achieve their goals.

“While there are positive signals across the U.S. economy, American households continue to face financial challenges in their day-to-day lives that are contributing to their recession expectations,” said Tim Wennes, Santander US CEO. “At Santander, we remain dedicated to supporting our customers by helping them to navigate these headwinds so they can achieve a financially prosperous future.”

To offset financial stressors in 2024, some consumers are taking advantage of higher interest rates on savings. According to the survey, 40% of middle-income Americans had moved money into higher-yielding accounts since interest rates began to increase in 2022. This is an improvement from 32% in the second quarter, but still six in 10 have not acted.

The study, which built upon previous research, assessed middle-income Americans’ current financial state and future aspirations, with a focus on how current economic conditions have impacted their households. It also explored their financial relationships with identified drivers of prosperity, including banking providers and vehicle access.