A recent PYMNTS Intelligence report titled “The Financial Management Divide: Planners vs. Reactors” surveyed 2,878 U.S. consumers between January 8 and 20, 2025. The study explored how people manage their money and found two main financial styles: planners and reactors.
Planners manage their money carefully and plan ahead. They avoid relying on credit and focus on saving and investing. Reactors, on the other hand, pay bills as they come and often depend on credit to cover expenses. In the survey, 40% of consumers were planners, while 60% were reactors.
Shift in Financial Behaviors Across Generations and Income Levels
The report shows that fewer people are planners now compared to February 2024, when planners and reactors were evenly split. Economic pressures and seasonal spending may be causing more people to react to financial needs rather than plan ahead.
Interestingly, the rise in reactive financial behavior is seen not only among younger people but also among high-income earners. This suggests that financial stress affects a wide range of consumers, regardless of income.
Key Findings:
Generational Differences: Baby boomers are mostly planners, with 54% fitting this category. In contrast, 73% of Generation Z are reactors. Boomers tend to focus on financial stability, such as saving for retirement, while Gen Z is more willing to take financial risks like starting a business.
High-Income Consumers: Since February 2024, the number of planners among high earners dropped by 25%, with 52% now reactors. This change may be due to inflation and higher living costs impacting even wealthy individuals.
Spending and Saving Habits: Planners save and invest about 12% of their monthly budget, more than double the 5.6% saved by reactors. Reactors prioritize paying off debt, with 30% focusing on debt repayment, indicating financial challenges.
Financial Stability: Most planners do not live paycheck to paycheck, though some do due to low income or high expenses. Reactors make up 92% of those struggling to pay monthly bills and 68% of those living paycheck to paycheck without difficulty.
The study highlights the need for banks and financial advisors to create tailored solutions. Understanding whether a person is a planner or reactor can help provide better support and tools to improve financial health.
