SURVEY

Americans' Financial Behavior Likely to be Impacted by International Conflict for Months to Come

Primerica, Inc. (NYSE: PRI), a leading provider of financial services in the United States and Canada, released the Middle-Income Financial Security Monitor for the first quarter of 2022 — a national survey that measures changes in the sentiments of middle-income families in the U.S. about their finances.

The survey found middle-income households remain concerned about inflation, with a majority indicating they are considering lifestyle changes to cut back on spending. In fact, two-thirds (66%) say inflation already has or is likely to impact a major purchase decision, and many people are contemplating lifestyle shifts because of rising costs.

Concern over the ongoing international conflict is also top of mind, with 61% saying they expect it will have at least some impact on their financial behavior and decisions over the next few months. This concern mirrors a Gallup poll about inflation issues from 1946 following World War II, when supply-chain shortages and pent-up demand drove prices upward.

“As we face the highest inflation levels in the past 40 years, it is critically important for middle-income families to understand how to budget, manage debt, save for the future and protect their incomes,” said Glenn J. Williams, CEO of Primerica. “These priorities compete for limited financial resources, making the need for professional guidance more important than ever.”

Key Findings from Primerica’s U.S. Middle-Income Financial Security Monitor

• Increasing cost of goods and services. Families are seeing the impact of inflation all around them, with respondents noting increasing price tags on a variety of items. That includes groceries (95%), gas (93%), retail purchases (82%), restaurants and bars (79%), health care (75%), subscriptions such as Netflix and Amazon (70%), and more. Of these, groceries (67%) and gas (60%) by far cause the most concern.
• Most plan to cut back due to inflation. The primary items people anticipate cutting back on include restaurant/take-out meals (57%), keeping current technology instead of upgrading (44%), and budgeting food purchases or cutting back on groceries (37%). Many are also looking at delaying a major purchase, with 40% indicating they have already done so and another quarter (26%) considering it.
• Is the “Great Resignation” waning? One-quarter (26%) say they are at least somewhat likely to change jobs in the next year, a decline from the 33% of respondents in December’s poll. Those likeliest to change jobs include adults ages 18-34 years old (35%), and Midwesterners (34%).

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