Survey Reveals Shift in Americans’ Spending Habits
A recent survey shows that over half of Americans are looking to cut back on discretionary spending—like entertainment and travel—this year. According to Bankrate’s poll, which was published earlier this week, about 54% of participants plan to reduce non-essential expenses in 2025, up from 49% last year.
Ted Rothman, a senior analyst at Bankrate, noted that there appears to be a decline in the trend of “fate spending.” This concept, which emerged during the pandemic, encouraged people to splurge on unique experiences, perhaps because life felt fleeting.
“We’re finally seeing the impulse of the ‘You only live once’ splurge come to an end,” Rothman explained.
The survey revealed that 38% of respondents anticipate lower travel expenses, while 39% expect to spend less on dining out and live events.
Concerns about a recession have been fueled by President Trump’s recent tariffs, with household debt reaching a staggering $18.2 trillion, according to the Federal Reserve Bank of New York at the end of Q1 2025.
A significant 82% of voters expressed worries about the possibility of a recession under the Trump administration, as shown in an exclusive poll conducted by News Nation/Decision Desk Headquarters in April.
“The cumulative effects of inflation and high interest rates are putting pressure on households, leading to record credit card debt and a dip in consumer confidence,” Rothman pointed out.
Yet, not everyone is planning to cut back. One-third of those surveyed indicated they intend to spend more on discretionary items this year, with 22% planning trips, 19% focusing on dining, and 15% opting for entertainment.
Bankrate has noted a drop in travel costs since last year, which includes expenses related to gas, car rentals, airfare, and hotels.
However, financial constraints and personal preferences appear to be significant factors limiting consumers’ willingness to spend. In fact, 65% of respondents mentioned they couldn’t afford additional experiences, while 23% stated they simply weren’t interested in traveling, and 16% found it too inconvenient.
This study, which included data from YouGov, was conducted from April 2 to April 4 among 2,484 adults in the United States.
