Money is important, but not everything, according to a new study from Havas Worldwide. The study, “Money, Money, Money: Attitudes Toward Credit, Consumption, and Cryptocurrency,” analyzes consumer spending habits to determine upcoming trends.
Major findings include:
Money is important, but not everything: Seventy-one percent of respondents say that life would in fact be better with more money; yet eighty-one percent say that people obsessed with money are missing out on the true meaning of life. Seventy-three percent say they admire people who are rich but still live simply.
People are cautious about debt: Nearly seven out of 10 respondents say their lives would be better if they had less debt. The primary reasons people are willing to incur debt are buying a home (50%), paying for children’s education (40%), investing in one’s own business (31%), and buying a car (27%).
Questions persist about the rewards of capitalism: Just 40% of mainstream respondents believe that the harder a person works, the more they will earn—a contradiction of a key belief on which capitalist societies are built. Fifty percent of respondents say it frustrates them to have to work so many hours just to support themselves.
Banks need to change: Consumers across the world expect banks to adapt to new technologies and take on a more personal role in customers’ lives. Fifty-nine percent of respondents say they wish they were smarter about saving money. Forty-nine percent of respondents want their financial life bundled within a single organization, and among the early adopters in the sample set (Prosumers), 55% want to pay for everything with smartphones and just as many would like to use biometric technologies for payments.
DIVERGE talked to Marianne Husrtel, Global Chief Strategy Officer of Havas to find out more:
Why did Haves decide to conduct this study?
In recent decades, the world’s economies have become increasingly intertwined, and economic recessions have rocked the confidence many people once had in a prosperous—and stable—future. Havas decided to conduct this study to understand how people around the globe are responding to economic shifts in their own countries and abroad. We took a look at a number of trends and topics, in particular how global citizens feel about their financial futures and how attitudes toward consumption are shifting.
What were some significant results?
It’s not just financial markets that react to developments around the world. Consumer confidence takes a hit, too, and even on an individual level, people feel less secure and more fretful about what is to come and how their own families will cope. Looking at our global sample, 68% worry about a global economic recession, 62% fear a collapse of the global financial markets, and 68% worry about running out of money as they grow older.
As the gap between rich and poor continues to widen, the belief that hard work will reap financial rewards is losing ground. And even in traditionally merit-based societies, people are no longer convinced that wealth is distributed fairly. More than half the global sample (57%) worry that current economic conditions will lead to a violent conflict between the rich and the poor. And around two-thirds would like to see the world’s wealth redistributed so no one is extremely rich or extremely poor.
To make it to the next century, banks will need to reinvent themselves in order to play a more meaningful role in people’s lives. Our financial worlds will also be impacted by the coming transformational shift in currencies and methods of exchange. One-third of millennial respondents believe traditional banks are outdated, and one-fifth think banks will have completely disappeared by the end of this century. Looking at the global sample, around a third of leading-edge Prosumers and a quarter of mainstream consumers believe Bitcoin and/or other virtual currencies will completely replace cash.
Why have consumers attitudes toward money and personal finances changed?
In a world in which uncertainty prevails, our perceptions of money are changing. There is now widespread agreement that most of us will need to learn to make do with less. Money can still contribute to happiness, but only if it’s managed wisely. Nearly 6 in 10 global respondents believe they need to get used to living with less money than they had a few years ago, and 84% would like to see parents teach their children to be happy with less.
How will this affect brands?
This study is a sort of wake-up call for brands. Brands will have to become more agile about making their products and services more relevant in an age of increasing minimalism. They will have to give consumers a reason to keep buying their products and create a genuine, authentic brand ethos that connects with potential customers.
How will these affect agencies?
Essentially brands will have to consider consumers’ changing perceptions about money and consumption when creating messaging and strategy for brands.
Since this was a global study, how did U.S. compare to other major countries?
There’s growing pessimism and uncertainty over our global, national, and individual economic futures—including in emerging markets. There’s a widespread concern over income inequality, a cultural divide in risk perceptions and projection, and the continued rejection of mindless consumption.
Additional thoughts: Prosumers are proactive, informed men and women and are leading influencers and market drivers. They have always been important, but they have grown even more powerful thanks to their skillful embrace of technologies and, especially, social media.
Havas has been tracking Prosumers for more than a decade and in that time has interviewed thousands of them. They are important to us because, beyond their own economic impact, they influence the brand choices and behaviors of others. Simply put, what Prosumers are doing today, mainstream consumers likely will be doing 6 to 1.
