Cleo, the consumer app that encourages better financial decisions, has released its 2022 Money Trend Report, an analysis of how Americans spend, save and think about money through 2023. The report looked at data from US users between January and December 2022 and a survey of US users taken in November 2022.
Despite the recession in 2022, survey respondents told the company that their financial goals are unchanged as they look into the coming year. While in 2022, 42 percent of people said paying off debt was their top priority, followed by 23 percent who said saving for the future and 16 percent said major purchases, in 2023, 36 percent of people said paying off debt would be done. The highest priority for saving for the future and making large purchases both rose to 26 percent.
“We’re excited to release Cleo’s first Money Trend report this year at a time when people are rethinking how they’re going to spend and save money,” said Kimberly Dillion, vice president of Brand at Cleo. “Another big trend is that inflation and the cost of living crisis is having a negative impact on people’s mental health, but perhaps the bright spot we’re seeing is that our users are turning to fundraising as a way to save money and get that endorphin rush. “
When looking at how money affects poor mental health, Cleo’s report points to 74 percent of people saying the rising cost of living has an impact on their spending decisions in 2023. Additionally, 73 percent said money had a negative impact on their lives this year. When asked the best word to describe the role of money in their lives right now, 46 percent of those surveyed said they were “worried” while 22 percent said they were “sad” and only 13 percent said they were “happy.”
As inflation rose last year, consumer spending saw a corresponding rise. Cleo users spent more than $36 million at thrift stores in 2022 and the average per capita spend at thrift stores was $163. The most popular thrift stores for Cleo users were eBay, Goodwill and Poshmark.
Another quarter of Cleo users also reported using buy now, pay utilities later to reduce spending by 2022.
Overall, Cleo found the “cheapest cities” with the most likely to spend on entertainment to be New York City, Denver and Pittsburgh, where people report 20 percent of their monthly spending on dining out, entertainment and shopping.