LendingTree, the online financial services marketplace, released survey results on how Americans prioritize technology in relation to their financial decisions.
The survey showed that 77% of Americans find it essential to have the latest technology and gadgets. This sentiment is particularly strong among younger consumers, with 88% of Gen Zers and 86% of millennials stating that having the latest technology is important to them.
Further data indicates that 28% of Americans would prioritize purchasing the latest technology over fulfilling basic financial obligations such as paying rent or bills.
Among Millennials and Gen Zers, the numbers rise to 45% and 38%, respectively. Additionally, of those who prioritize technology over financial commitments, 78% admitted they would choose to buy a new phone, such as the iPhone 15, over paying rent or bills.
Adding another layer to the financial aspect, the survey found that 26% of Americans have taken on an average debt of $1,492 to acquire the latest technology products. The items causing this debt are primarily phones at 69%, followed by computers at 41% and smartwatches at 27%.
Brand loyalty also surfaced as a point of interest in the survey. Specifically, iPhone users are more than twice as likely as Samsung users to upgrade to a new phone model when it is released, with percentages at 9% for iPhone users versus 4% for Samsung users. In contrast, 35% of Samsung users wait until their current phone breaks before purchasing a new one, compared to 24% of iPhone users.
Matt Schulz, LendingTree’s Chief Credit Analyst, provided a tip for consumers, stating that if they can afford to buy the latest technology and pay it off within a month or two, then they could proceed with the purchase. However, if they cannot afford it, Schulz advised consumers to start saving money to better afford the technology in the future.
“As cool as that new iPhone might be, avoiding unnecessary debt is a whole lot cooler. If you can afford to buy it and pay it off in a month or two, have at it. If not, make a plan and take it slow. Instead of rushing to buy, start putting some money aside to help you better afford it in a few months. Even if you can’t save enough to pay for all of it, what you are able to put away will help lower the interest you’ll pay in the future. Remember, this isn’t a one-time thing like a Taylor Swift or Beyonce concert coming to your town. These phones are going to be available for a long time, so there’s no rush,” Schulz said.