The Two Money Mindsets Shaping How Consumers Manage Their Finances

Managing your finances isn’t just a function of how much you make. It’s also a reflection of behavioral patterns. New PYMNTS Intelligence research reveals that consumers tend to fall into two distinct personas: planners, who take a strategic, proactive approach to managing their cash flow, and reactors, who handle bills as they arise, often relying on credit. The balance between these groups is shifting, with economic pressures reshaping financial habits even among high earners.

A rise in reactive behaviors — particularly among younger generations and high-income earners — signals the emergence of a dynamic in which reactive responses to financial pressures are transcending income levels. Understanding these behavioral distinctions is critical for financial institutions and wealth managers focused on developing planning habits and solutions supporting stability and growth.

These are just some of the findings explored in this edition of “New Reality Check: The Paycheck-to-Paycheck Report,” a PYMNTS Intelligence exclusive report series. This latest installment, “The Financial Management Divide: Planners vs. Reactors,” examines the distinct behaviors and priorities of financially proactive consumers compared to those who are more reactive. It draws on insights from a survey of 2,878 U.S. consumers conducted from Jan. 8 to Jan. 20.

• 40% of Consumers Take a Proactive Approach to Financial Management
• Baby Boomers Seek Financial Stability as Gen Z Shoots for the Moon
• Higher Earners Increasingly Fall into Reactive Financial Management Behaviors
• Planners Save For the Future While Reactors Focus on the Present
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• Methodology

40% of Consumers Take a Proactive Approach to Financial Management

In recent years, reactors have almost always outnumbered planners. As of January 2025, 4 in 10 consumers fall into the planners category, as defined by the criteria above. These consumers proactively manage their monthly cash flows and credit with strategic planning, while the remaining 60% handle their finances reactively.

The variance seen over time suggests that a consumer’s financial management style may be tied to economic uncertainty or seasonal spending trends.

Notably, since February 2024, when roughly half of consumers were planners and the other half reactors, the share of planners has declined. This could indicate growing financial strain as more consumers fall into habits of revolving credit and decreased savings.

Despite their decreasing share, a substantial portion of consumers continues to fall into the planner persona. Such individuals consistently pay off their monthly credit balances, maintain lower debt and prioritize savings, ensuring they can handle unexpected expenses without relying on high-cost borrowing.

Baby Boomers Seek Financial Stability as Gen Z Shoots for the Moon

Regarding financial management strategies, there are stark differences between different generations. Baby boomers stand out as the only generation where planners make up the majority (54%). In contrast, younger generations — especially millennials and Gen Z — predominantly exhibit reactive financial behaviors. In fact, nearly three-quarters (73%) of Gen Z falls into the reactor category. This disparity suggests that financial habits may evolve with age and experience, reinforcing the need for tailored financial education and support.

This stark difference in financial behaviors between generations also reflects divergent priorities. Boomers prioritize financial stability. Their financial goals align with maintaining that security in later life, with 22% citing saving for retirement as their most pressing matter. This figure is nearly three times the share of Gen Z who said the same.

Meanwhile, Gen Z consumers are far more likely to take financial risks, with 6.8% aiming to start a business. They are eight times as likely as boomers to cite this goal as their top priority. They are also more likely to focus on financial objectives like homeownership and career investments such as education. These priorities highlight their pursuit of growth opportunities rather than — and sometimes at the expense of — immediate stability.

The generational dissimilarities underscore the need for flexible financial solutions, ensuring younger savers have access to resources that support both risk-taking and older individuals have tools to help them achieve long-term stability.

High Earners Increasingly Fall Into Reactive Financial Management Behaviors

A surprising and counterintuitive shift is emerging among high-income consumers: a growing tendency toward reactive financial behaviors. Since February 2024, the share of high-income earners who are planners has plunged 25%. More than 1 in 2 (52%) now fall into the reactor persona. This decline in proactive financial management may suggest that even people with substantial earnings face new financial pressures from inflation and rising living costs. Or it may signal new spending and consumption patterns that are draining their finances.

In prior years, higher-income individuals were more likely to exhibit disciplined financial behaviors, such as strategic saving and long-term planning. However, the recent shift signals potential difficulties in maintaining financial stability even at elevated income levels. Meanwhile, middle-income earners are nearly as likely as their high-income counterparts to engage in proactive financial management, suggesting that factors beyond income — such as economic conditions and shifting financial priorities — influence consumer behaviors.

The narrowing financial planning gap between middle- and high-income consumers could point to the widespread impact of economic challenges. Alternatively, there could simply be shifts in the shopping and spending habits of those higher-earning individuals. While lower-income consumers are still the most likely to be reactors, the increase among high-income earners suggests that financial stress may no longer be confined to those with limited resources. This trend highlights the need for financial strategies that cater to all income levels, ensuring that even wealthier earners have the tools and support to navigate economic volatility effectively.

Planners Save for the Future While Reactors Focus on the Present

Planners and reactors have different financial habits, which point to distinct priorities shaping spending and savings behaviors. Planners dedicate a significant portion of their monthly budget — 12% — to savings and investments, more than double the 5.6% allocated by reactors. This highlights a disciplined, long-term approach among planners, who prioritize building long-term financial security while meeting their immediate obligations. Conversely, both groups exhibit similar spending patterns for essentials such as groceries and discretionary expenses such as recreational activities.

One of the most notable differences between planners and reactors is their long-term financial goals. Nearly 3 in 10 planners cite saving for retirement as their top priority, reinforcing their commitment to future financial well-being. Just 12% of reactors, who are generally more focused on the present, say the same. Thirty percent of reactors prioritize debt repayment. This figure suggests that many reactors may be grappling with financial burdens, including student loans. These burdens prevent them from directing resources toward accumulating wealth in the long haul.

The PYMNTS Intelligence data suggest that each money-management persona needs tailored solutions from financial institutions to support their distinct needs. Tools that facilitate debt reduction while encouraging gradual savings growth could help reactors transition toward a more balanced financial strategy focused on planning. Meanwhile, planners may benefit from enhanced investment opportunities that align with their future-focused priorities, ensuring they can maintain their proactive approach in an evolving economic landscape.

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Methodology

“The Financial Management Divide: Planners vs. Reactors,” a PYMNTS Intelligence exclusive report, is based on a survey of 2,878 U.S. consumers conducted from Jan. 8 to Jan. 20. The report examines the cash flow management behaviors of consumers who take a proactive approach to their finances as compared to those whose approach is more reactive. The sample was balanced to reflect the U.S. adult population across key demographics: 51% of respondents identified as female, 33% held a college degree and 30% reported annual incomes between $50,000 and $100,000.