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More than three-quarters of consumers expect an important life milestone during the next decade, and for most of those consumers, the financial stress of paying for the event will be greater than the emotional stress tied to the milestone, according to a new survey from Citizens Bank.
For some consumers, that milestone will happen in the next year. While the survey found that 78 percent of survey respondents have a major life milestone happening in the next decade, half of respondents will experience that major life event within the next 12 months, Citizens said in a statement.
The survey also found that a majority of consumers have more stress related to paying for the event, with 60 percent of all respondents and 73 percent of Generation Z saying the financial stress of paying for the event is greater than the associated emotional stress.
The study, conducted in partnership with Wakefield Research, was based on an online survey between Jan. 20 and Jan. 29 of 2,000 nationally representative U.S. adults ages 18 and older, with an oversample of 500 Gen Z respondents.
The major life events expected for the next year include celebrating a wedding anniversary (18 percent) and purchasing a new home (15 percent). More than three-quarters of Gen Z consumers anticipate a major life event this year, including 42 percent who will move into a new apartment, 16 percent who are starting college and 11 percent who are getting married.
Most respondents experiencing a life event wanted financial flexibility to afford a better or more luxurious item related to the event, Citizens said, noting that increased financial flexibility, including more payment options, would enhance these milestones.
“There’s a disconnect between consumer desire to celebrate life’s big moments in the way they want and their ability to pay for those moments without high levels of financial anxiety,” Christine Roberts, executive vice president and head of Citizens Pay, said in the statement. “Predictable, low interest monthly payment options, such as installment financing, can help remove financial stress and enable people to more readily enjoy life’s key moments. This is a critical insight as we continue to innovate and deliver new products that can help consumers responsibly manage their financial lives.”
The study also found that 90 percent of respondents plan to make large purchases in the next 12 months, with 42 percent taking a vacation, 42 percent buying a new cell phone, 36 percent buying a laptop and 31 percent purchasing new furniture.
While credit cards and cash were the leading payment options consumers were considering using to make purchases over $500, 17 percent were considering buy-now-pay-later (BNPL) services. For those considering BNPL, 53 percent said the top benefit is having the financial flexibility to make big ticket purchases and 39 percent cited ease of applying.
