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Americans Are Budgeting More Than Ever
Debt.com polled more than 1,000 Americans on their budgeting and spending habits. The majority say they budget their finances and it’s helped them get out and stay out of debt.
For the past five years, Debt.com has conducted its annual budgeting survey. The number of respondents who say they budget their spending and saving has increased each year.
The latest has hit an all-time high. More than 8 in 10 (86 percent) respondents track their monthly income and expenses. In 2021 and 2020, that was 80 percent. Pre-pandemic, in both 2018 and 2019, that number was roughly 70 percent.
Howard Dvorkin, CPA and chairman of Debt.com, has a hunch that world events over the past few years have motivated more Americans to keep an eye on their spending.
“It’s quite likely that both inflation and the pandemic have made Americans keen to budget,” Dvorkin says. “It’s a one-two punch.”
This year, the data is broken down by who actively uses a budget and who doesn’t.
The survey’s key findings:
One reason budgeting might be more popular is that it’s much easier. While 39 percent of respondents still use pen and paper to create their budgets, that’s much less than the 66 percent from Debt.com’s first budgeting survey in 2018. Nearly 30 percent now use either mobile apps or online tools from their bank or credit union.
Fully 85 percent of those who budget say that simple process got them out of debt or has helped keep them out of debt.
Sadly, almost a third say they don’t budget because “I don’t have much income,” and half are living paycheck to paycheck.
Who should budget?
More than 8 in 10 of those who budget say it’s helped them get out or stay out of debt
How survey respondents prefer to create a budget
Most respondents who don’t budget say they don’t earn enough to warrant a budget
Who’s living paycheck to paycheck to make ends meet
I’m single, financially independent, and I budget!
36.72%
I love to budget, but my significant other doesn’t.
18.23%
My significant other is on a budget, but I am not.
2.86%
I live with my parents, and I don’t use a budget because I’m saving up to live on my own.
1.82%
Why don’t you budget?
2021
I don’t earn enough income
34.01%
It’s too time consuming
20.30%
It makes me feel anxious/bad.
19.80%
I have budgeted, but it’s never helped me.
19.29%
It causes disagreements with my spouse.
6.60%
Have you used websites for tips on how to build a budget?
2021
No, I never thought about it
49.10%
Yes, this is one of the reasons why I visited Debt.com
29.19%
Yes, I have visited sites other than Debt.com.
21.71%
How do you prefer to create a budget?
2021
Pen and paper
61.38%
Spreadsheets
17.21%
Mobile apps
9.76%
My bank/credit union’s budgeting tools
7.86%
A financial advisor
3.79%
Which method of budgeting would you be most interested in trying?
2021
None – I’m not interested in budgeting
25.67%
Pen and paper
23.53%
Mobile apps
25.13%
Spreadsheets
12.30%
My bank/credit union’s budgeting tools
8.02%
A financial advisor
5.35%
Has budgeting helped you get out or stay out of debt?
Yes
No
2021
87.77%
12.23%
Have you been able to stay out of debt without a budget?
Yes
No
2021
50.27%
49.73%
When I shop for groceries…
2021
I shop with a list, stick to my budget, AND use coupons
46.92%
I shop with a list and stick to my budget
27.22%
I shop without a list, but control my spending
20.11%
I walk in to buy one thing, and walk out with a cart full of stuff
3.42%
I buy whatever I want
2.33%
Do you budget for special events and holidays?
2021
Yes, I save for these events throughout the year
61.93%
No, I spend on special events without a budget.
16.14%
Yes, but I shop at the last minute and often go over budget
10.90%
No, I don’t buy gifts or celebrate special events
11.03%
Do you budget separately for special events and holidays?
2021
No, I spend on special events without a budget.
42.93%
No, I don’t buy gifts or celebrate special events.
16.30%
Yes, I save for these events throughout the year.
20.11%
Yes, but I shop at the last minute and often go over budget.
20.65%
Do you think restaurant meals should be included in a grocery budget?
Yes
No
2021
60.97%
39.03%
Do you budget for the “little things”? (For example, vending machines, gas stations, coffee shop runs, etc.)
Yes
No
2021
56.23%
43.77%
Methodology: Debt.com surveyed 1,019 people and asked 15 questions about their budgeting and spending habits. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. The survey was conducted from March 8, 2021 to April 26, 2021.
I’m single, financially independent and use a budget
39.65%
34.67%
I’m on a budget, but my significant other is not
13.76%
11.11%
I’m living with my parents, and budget because I’m saving to live on my own
1.39%
3.85%
My significant other is on a budget, but I’m not
1.39%
2.22%
Why don’t you budget?
2019
2018
I don’t earn enough money
39.61%
33.80%
It’s too time-consuming
21.05%
21.25%
I have budgeted, but it’s never helped me
15.51%
19.86%
I have budgeted, but only for special occasions and holidays
14.13%
16.72%
I never overspend
8.31%
7.32%
I make so much money I don’t need to budget
1.39%
1.05%
Have you used websites for tips on how to build a budget?
2019
2018
No, I never thought about it
32.78%
26.74%
Yes, this is one of the reasons why I visited Debt.com
28.01%
41.52%
I have a budget that I created on my own
22.46%
11.65%
Yes, I have visited sites other than Debt.com for advice
16.74%
20.08%
What tools do you use to budget?
2019
2018
Pen and paper
67.05%
66.22%
Spreadsheets
28.66%
32.00%
I budget in my head
25.38%
26.52%
I use my bank/credit union budgeting tools
15.28%
13.33%
Mobile apps
13.26%
16.74%
I have a financial advisor
5.43%
5.93%
I don’t budget
0.88%
0.44%
Have you ever thought about trying any of these budgeting tools/methods?
2019
2018
Pen and paper
73.65%
72.01%
Spreadsheets
32.63%
36.19%
Mobile apps
32.63%
32.46%
Budgeting tools/software provided by my bank/credit union
20.36%
18.28%
Financial advisor
14.67%
18.66%
Has budgeting helped you get out or stay out of debt?
Yes
No
2019
75.88%
24.12%
2018
72.74%
27.26%
Have you been able to stay out of debt without a budget?
Yes
No
2019
29.25%
70.75%
2018
26.67%
73.33%
When I shop for groceries…
2019
2018
I shop with a list, stick to my budget, AND use coupons
46.21%
57.33%
I shop with a list and follow in according to my budget
32.07%
23.41%
I don’t bring a list, but I control myself from overspending
14.52%
12.44%
I usually walk in wanting to buy one thing, and walk out with a cart full
4.80%
5.48%
I buy whatever I want
2.40%
1.33%
Do you budget for special events and holidays?
2019
2018
Yes, I save throughout the year so I can afford to celebrate with my loved ones
33.21%
33.63%
I rarely have the money to budget for special events or gifts because I am living paycheck to paycheck
23.11%
24.74%
I set a budget and start saving a month or two before the event
21.09%
24.74%
I usually don’t buy gifts or celebrate special events
14.14%
10.52%
I shop at the last minute and I often break my weekly/monthly budget for special events
8.46%
6.37%
Do you budget separately for special events and holidays?
2019
2018
I rarely have the money to budget for special events or gifts because I am living paycheck to paycheck
44.04%
45.10%
I usually don’t buy gifts or celebrate special events
17.73%
8.04%
Yes, I save throughout the year so I can afford to celebrate with my loved ones
14.40%
19.23%
I set a budget and start saving a month or two before the event
12.19%
12.94%
I shop at the last minute and I often break my weekly/monthly budget for special events
11.63%
14.69%
Do you separate the cost of meals at restaurants from your grocery budget?
Yes
No
2019
62.12%
37.88%
2018
57.93%
42.07%
Do you budget for the “little things”? (For example, vending machines, gas stations, coffee shop runs, etc.)
2019
2018
Yes, I put extra money aside for the “little things”
42.68%
44.74%
I probably should, but I don’t
29.04%
28.44%
No, these things cost me little money so I do not budget for them
28.28%
26.81%
Methodology: Debt.com surveyed 2,654 people and asked ten questions related to their budgeting behavior. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. The survey was conducted from Feb. 04, 2020 to Feb. 24, 2020. *In 2019 Debt.com surveyed 1,153 people using the same type of consumer-focused questions regarding budgeting utilizing SurveyMoney. And in 2018 Debt.com surveyed 961 people with the same survey tool.
Methodology: Debt.com surveyed more than 1,000 Americans and asked 12 questions about their budgeting and spending habits. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. Percentages were rounded up to the nearest whole number and might not total 100 percent.
Looking for a better, faster, easier way to budget? Debt.com has partnered with Tiller to bring you easy-to-use budgeting spreadsheets
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