Want to understand how affluent consumers handle their finances? Dive into this in-depth exploration by Mastercard. Discover the strategies and preferences that set them apart from the rest.

Uncover the Secrets of Affluent Consumers' Wallet Optimization

What is "Financial Gymnastics"?

New Mastercard research reveals that affluent consumers love to optimize their wallets through what they call "financial gymnastics." They juggle credit and debit cards with digital wallets and mobile payments, constantly seeking the best ways to manage their money. Tangible rewards like cash back and travel points are major pull factors for them. For example, one affluent individual disclosed, "I have a card that offers cash back, I have a card that has miles and a card for earning points." This shows their willingness to spend time managing their finances to maximize rewards.

At Mastercard, we caught up with the top 10% of household incomes - the affluent. Their habits and preferences are shaping the future of card propositions. One interesting aspect is their use of multiple payment methods. On average, they use about 2.1 credit cards and up to six different payment methods, with those in Asia Pacific going even further with approximately 7.5 payment methods.

It's not just about rewards though. Affluent consumers also think long-term and want to build a legacy for their loved ones. They balance risk and reward, with 45% having a higher risk tolerance compared to 65% of mass consumers. They embrace digital wallets and alternative payment methods early, showing their tech savviness.

Maximizing Rewards and Convenience

For the affluent, rewards make all the difference. Close to half (47%) of them make payment decisions based on perks. They take advantage of rebates and discounts for dining and entertainment, with 69% feeling they can do so from their banks. This allows them to enjoy priceless experiences with their loved ones.

They don't just accumulate assets; they value experiences over possessions. International travel is a huge priority for many. Prudent financial decisions add up to a life well-lived, where they can continuously grow and improve in all aspects.

However, rewards come with risks. The affluent have the foresight to balance these risks as they explore different payment options. They are willing to take financial risks to grow their money while also being cautious.

Balancing Risk and Reward in Payments

The affluent's financial savviness extends to their tech savviness. They quickly adopt new payment methods and ensure they are seamless and easy to use. 45% of them are willing to pay a little more to save onboarding time, as time is money to them.

Financial and personal progression go hand in hand for the affluent. Reliable payment methods free up time for them to spend with loved ones or pursue their passions. They truly embrace the idea of working to live, not just living to work.

Leaving a Legacy

After juggling payment options and risks, the affluent focus on leaving a legacy. 30% more likely than mass consumers, they prioritize saving for an inheritance. They take control of their savings by making every payment decision intentionally, with 40% more likely to have a financial goal to build a legacy.

The perfect wallet isn't about its appearance; it's about optimizing it to suit one's needs and goals. By managing money prudently, they can lead a richer, more rewarding life.

Want to know more about how the affluent are mastering their money? This article was created by Insider Studios with Mastercard.