June 16, 2024

This Memorial Day weekend, Americans are staying frugal.

More than half of Americans plan to spend less than $100 this holiday weekend, with 29% saying they are planning on keeping their spending under $50, according to a recent survey of almost 1,000 Americans carried out by GOBankingRates.

Each generation has their own expectations of how much they plan to spend on the weekend, with 41% of both baby boomers (65 and older) and older Gen X (55 to 64), respectively, budgeting $50 or less. Meanwhile, 28% of GenZers between the ages of 18 and 24 said they would spend $51 to $99, and 20% said they would stick to $50 or less — meaning almost half of Gen Z wants to keep their spending under $100 for the holiday weekend.

Despite sales on furniture, televisions, cars, and more in store for the holiday weekend, Americans are expecting to keep their wallets sealed, at least to non-essential purchases. Instead, they’re putting their money where their mouth is — literally. The survey found that food was the top item on consumers’ list for the weekend, especially among millennials, GenXers, and baby boomers.

This comes as grocery prices declined — albeit slightly — for the first time in 12 months in April, according to the Labor Department’s latest consumer price index (CPI).

A decrease in discretionary spending could also be a sign that consumers are feeling the pinch from inflation. The University of Michigan’s consumer sentiment survey, a highly watched metric by economists and federal officials, dropped 13% in May, hitting its lowest reading in six months. The results of the survey pointed to consumers’ increasing concerns that inflation, unemployment, and interest rates could all be moving in an unfavorable direction in the coming year.

Inflation rose 3.4% year-over-year in April, following a hotter-than-expected 3.5% increase in March — and well above the Federal Reserve Bank’s 2% target.

But consumers are still planning to take part in festivities: 57% of Americans surveyed by market research company Numerator said they will celebrate the holiday and almost all celebrants are expecting to make purchases. Food and alcoholic beverages again top consumers’ shopping lists for the weekend, according to Numerator. Especially when it comes to beer.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *