Online Americans Save $8,800 Annually - Thanks to Internet

Factoring in the average annual cost of a home broadband connection of $490, the typical American family can save nearly $8,400 per year on necessities like rent, food and clothing; basics like entertainment and travel; and every day services like paying bills through opportunities only available via the Internet.

Broadband-enabled savings increased nearly $1,200 per American household from last year, the Internet Innovation Alliance (IIA) announced.

Savings for Internet-using U.S. consumers grew from 12.2 percent ($7,694.56 annually) to 13.5 percent ($8,870.00 annually) with the U.S. Bureau of Labor Statistics reporting that average annual expenditures rose 3.3 percent in 2011. The upswing in consumer spending was the first increase since the 1.7-percent rise from 2007 to 2008, as expenditures declined in 2009 and 2010.

"On Cyber Monday, Americans will log on to take advantage of Internet-only discounts and offers like free shipping," said Nicholas J. Delgado, certified financial planner and principal of Chicago-based wealth management firm Dignitas.

The IIA's findings are detailed in Delgado's 2012 financial analysis titled "Next-Generation Networks and Top 10 Consumer Savings Now."

"But more and more consumers are realizing that the Internet is an essential ingredient for keeping more money in their pockets year-round with deals regularly available and many online retailers making value their central differentiator," Delgado said.

Fifty-seven percent of online adults in the U.S. shop more with retailers that offer free shipping, a recent Forrester report said.

Smart shoppers use next-generation networks to save money through price comparison and access to deeper inventory often through sites that list many different marketplaces. Going online saves gas and time when compared to going out.

"These money-saving tactics are critical in a challenging economy and are contingent upon access to high-speed broadband," said Bruce Mehlman, founding co-chairman of the IIA. "Transitioning to next-generation networks is crucial for all Americans to be able to make the Internet part of their financial strategy.

The analysis is based on the 2011 Consumer Expenditure Survey released on Sept. 25 by the U.S. Department of Labor.