WILMINGTON, DE — Nearly four in 10 consumers in the Greater Philadelphia and Delaware region are spending less than they were a year ago, with households cutting restaurants, travel and other discretionary purchases as they seek greater financial flexibility, according to WSFS Bank’s annual Money Trends survey.
The survey found 39% of respondents reported lower overall spending, compared with 32% who were spending more.
Among consumers who cut spending, restaurants were the most frequently reduced discretionary category, cited by 38%, followed by travel and vacations at 35%, online shopping at 33% and entertainment at 32%.
Consumers spending more were largely directing the additional money toward necessities. Groceries led at 67%, followed by utilities at 55%, transportation at 44% and housing at 44%.
Rising costs and inflation were the most common explanation among respondents experiencing higher spending, cited by 77%. Increased income accounted for 28%, while 26% pointed to unexpected emergency expenses.
The findings indicate that higher living costs remain a significant source of pressure even as some households deliberately reduce discretionary consumption.
“Local residents aren’t just cutting back out of necessity; they are making a strategic shift toward more intentional spending,” Shari Kruzinski, executive vice president and chief consumer banking officer at WSFS Bank, said.
Avoiding new debt also emerged as a priority. Thirty percent of respondents identified avoiding loans as a strategy for protecting their finances, while 28% cited cutting nonessential spending and 25% reported reducing credit spending or debt.
Payment habits have shifted as well. WSFS reported increased use of payment apps and digital wallets since 2023, with adoption reaching 67% and 54%, respectively.
Payment apps such as Venmo and Zelle were the most regularly used payment method among respondents at 73%, followed by digital wallets at 64% and cash or checks at 47%.
The survey also identified gaps in consumers’ familiarity with savings products. Twenty-four percent of respondents were unaware of high-yield money market accounts, 19% were unfamiliar with money market accounts, 18% with certificates of deposit and 16% with high-yield savings accounts.
“As a banker, I’m concerned about the regional savers who are missing prime opportunities to maximize savings and build wealth,” Kruzinski said. “These awareness gaps present a major opportunity for financial institutions to step in and help consumers.”
WSFS Bank is the primary subsidiary of Wilmington-based WSFS Financial Corp. (Nasdaq: WSFS).
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