The FINANCIAL — Nearly half (48%) of Americans are feeling confident about their finances going into the New Year. That's up from 32% in 2010, according to the latest American Express Spending & Saving Tracker.
Still, the lessons of the recession have not been forgotten. Nearly a quarter of consumers (24% vs. 21% in 2013) still feel "frugal" and this year, those who save are planning to increase their savings by 14% over last year.
"Smart spending is still the name of the game in 2014," said David Rabkin, SVP U.S. Consumer Lending Products, American Express. "The lessons of the recession are top of mind for Americans, who say they will keep saving and setting financial goals. That said, across income groups, Americans are optimistic and ready to splurge a little this year, planning leisure trips, renovating their homes and opening their wallets for little things, like a night on the town or a new outfit," he added.
A surprising 62% said they kept their resolutions last year, with a significant increase (45%) in the number of Americans setting resolutions for 2014, according to American Express Company.
Though Americans say they will be saving more, some discretionary spending is still planned for 2014. Spending on home and hearth top the list, as 34% of consumers plan to spend more to upgrade and remodel this year, up from 31% in 2013. Similar to last year, 8% of consumers plan to purchase homes, but home buyers expect to spend 45% more than last year, with an average price tag of $179,140, though real estate prices vary across markets.
Nearly a quarter (24% vs. 26% in 2013) will purchase a new or previously-owned set of wheels, planning to pay 7% less than they did in 2013, spending an average of $18,946. Even affluent Americans expect to pay less for their ride, spending $29,763 on average, a 16% decline from last year, according to American Express Company.
Investing in their image, 30% of consumers plan to spend more this year on clothing, accessories, shoes and jewelry, up from 28% in 2013 and 22% in 2012. All dressed up with somewhere to go, most consumers expect to spend more or the same on experiences this year, from catching a movie or a concert (70% vs. 67% in 2013) to dining out (69% vs. 66% in 2013) and taking a vacation (68% vs. 67% in 2013).
Travel will be a "to do" for more than 133 million Americans (compared to 129 million in 2013) who plan leisure travel this year. Nearly half (47%) plan to spend more on vacations this year than they did last year, according to American Express Company.
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