TV streaming services are taking precedence over retirement investments for budgeters, with 47% of people listing streaming as a top spending priority, while only 26% prioritize adding to retirement savings.
Streaming services are increasing in popularity in the US, with a 2024 report* finding that the average American spends $61 each month on TV streaming, an increase from $48 in 2023. First Merchants Bank found millennials to be the most likely to prioritize TV streaming, with 49% listing it as a key factor in their regular budgeting, closely followed by 47% of Gen X.
Because of ongoing inflation and a high cost of living, many feel they need to choose between spending their money on daily enjoyment or future investments. The immediate reward offered by streaming services appears to be more important than long-term savings, with just 21% of Millennials and 27% of Gen X prioritizing saving for their retirement.
The survey also found that on average, 58% of adults were overspending monthly. With another recent study finding that 55% of Americans are concerned they can't achieve financial security for
retirement, the experts at First Merchants Bank are eager to support those unsure how to manage their spending and save to ensure a secure financial future.
Dahna Sanders, Vice President and Senior Workplace Banking Representative at First Merchants Bank commented on the importance of financial preparation for retirement, explaining, “most people rely on
retirement savings to help them manage their expenses once they stop working. While Social Security provides support, for many it is unlikely this will match monthly expenditure, so it’s important to prepare to ensure financial health once you leave work.”
“With the correct tools you can balance spending money on things which bring enjoyment and investing wisely in your future. Using budget building tools and spending alerts can help create budgets and stick to them.
Financial calculators, or interest-bearing accounts like
high-yield Money Market accounts can help maximize your savings for the future.” Tools such as MX (which comes free with First Merchants online banking), can make budgeting easier and more enjoyable.
“For tailored financial advice that works for you and your finances, speaking to an expert at your local bank is a great place to start.”
