Research from the Better Sleep Council highlights what today’s consumers are (or aren’t) spending their money on — and why.
Does the state of today’s economic uncertainty keep you up at night? Or at least preoccupied during the day? You’re not alone. Money matters are top of mind for today’s consumers, whether it’s how much to save or how much to spend — and on what. In the May issue of BedTimes, we covered generational approaches to spending, a portion of the latest research from the Better Sleep Council, which is exploring consumer spending priorities for 2025. Since 1996, the BSC has conducted research to understand and track changes in consumer attitudes toward sleep, health and their mattress purchase decision-making.
In this article, we’ll explore how consumers plan to allocate their money this year and the motivations behind their purchase decisions. These findings were compiled from an online survey conducted Feb. 19-27 with 500 U.S. adults.
Consumer Spending Trends: Where Money is Going in 2025
According to the BSC, a majority of U.S. adults are taking a mindful approach to their spending: 70% follow a budget, 53% say they are not impulse buyers and 65% would rather save money than spend it. These attitudes about spending, however, vary by age and current economic outlook.
A little more than 70% of those ages 18 to 44 state they have a budget they plan to stick with, closely followed by 68% of those 45 years of age and older who say the same. Impulse buying, which is defined in this survey as “if it sparks joy, I’m buying it,” tends to skew younger with more than half (58%) in the 18- to 44-year-old age group agreeing with the statement. It makes sense that the 45 years and older group, who are typically more risk averse, trail behind in impulse buying, reported at 37%. Read on to find out what motivates consumers to purchase, regardless of their budget and disposable income.
Budget’s Influence on Spending Decisions
When deciding what is worth splurging on, budget is a top priority — nearly one in four consumers will make a purchase only if it fits into their budget. For 32% of those who are worried about affording necessities, budget is their main driver when deciding what’s worth splurging or spending extra money on. They are only buying items within their financial plan. Secondarily, 20% of this group will splurge if they feel the purchase is a good investment or will last for a long time. For those who are worried about affording purchases beyond basic necessities, 19% will splurge if the expenditure improves their quality of life, followed by 18% who will do so if they feel they are investing in something.
Not surprisingly, those who are comfortable making or considering larger purchases are still mindful of their budgets, but it is not their top purchase driver. A quarter of respondents in this category are most motivated by purchases they feel will improve their quality of life. So, how are consumers allocating their money in 2025?
Saving vs. Spending: Consumer Priorities
The BSC reports more than a third of consumers (37%) are prioritizing savings and wealth-building as a top priority in 2025. As stated in the prior installment in this series, U.S. adults have mixed expectations for this year, with more than two-thirds feeling optimistic about their finances. Yet more than half also report they are concerned about their financial stability. So, it makes sense that the top categories for expenditures are a mixture of recreation and obligations. When saving, people are allocating their money toward travel (36%), clothing (29%), home improvement (26%), debt repayment (25%) and medical expenses (24%). Broken down, those most focused on debt repayment are people who also said they’re worried about basic necessities while respondents who are worried about affording purchases beyond basic needs are prioritizing saving. More than half of people (57%) with the most positive outlook for 2025 — those who are comfortable making or considering making large purchases — plan to allocate extra money toward travel.
After the top categories, other priorities include fitness or wellness (22%), a new vehicle (20%) or fun weekend(s) or night(s) out (18%). Least popular? Education or training, furniture or home decor, or a special event.
Prioritizing Wellness and Home Comfort
Where does that leave home furnishings-related purchases like bedding? Just 13% of respondents stated furniture or home decor was a top priority for 2025. However, therein lies the opportunity. Nearly one-third of U.S. adults also stated their top priority for improving sleep this year is managing their stress or anxiety. Those consumers are currently most likely to purchase items such as pillows (31%), sheets (30%) or a new mattress (23%), according to the survey. Other product priorities, in order from most to least popular, are mattress toppers, sleepwear, sleep-friendly decor such as blackout curtains or a white-noise machine, a sleep-tracking device or app, or an adjustable foundation. However, the report also reveals one in four consumers doesn’t plan to purchase any sleep-related items in 2025.
Given the current state of anxiety many consumers face over finances, focusing on health and wellness, as well as antianxiety messages to promote a better night’s sleep and a better quality of life, could be effective when targeting potential consumers. Additionally, messaging that spotlights the quality and longevity of sleep products could connect with those consumers who are willing to splurge if they think they are investing in themselves and their future.
