Americans spent 5.8% or more According to a Wall Street Journal podcast, the inflation rate in August 2023 will be higher than the previous year, which is higher than the August 2023 inflation rate of 3.7%.
regardless of report Despite slowing inflation and an emphasis on older generations saving money to invest in the future, Americans are still spending money instead of saving it.
According to multiple sources, news organizationpeople choose to spend rather than save for several different reasons.
Why are people saving less?
wall street journal Consumer trends reporter Rachel Wolf reported that people these days are “probably prioritizing experiences that make them happy now over long-term savings goals.”
wolf continuationstates, “In some cases, you are willing to give up some financial security and wealth to be happy in the moment.”
economist It is reported that “young people have always confounded their elders” when it comes to their spending habits, especially when it comes to Gen Z and Millennials.
Before inflation, inflation was the excuse. cooledas reported by various news organizations report Expenses are still increasing relative to savings.
“People are definitely spending. Retail sales rose seven-tenths of a percent last month, easily outpacing inflation,” said Scott Horsley, NPR’s chief economics correspondent.Weekend Edition Sunday” show. “We continue to expect consumer spending to lose some momentum at some point, especially as low-income households deplete the savings they accumulated in the early days of the pandemic.”
Why is it so difficult to save money now?
new york times reported that people in their 20s are currently having a hard time saving money due to student loans, rising food prices due to inflation, and the fact that today’s market is in a different situation than generations before them. .
“I feel like older generations are always pushing you to do the same things they did when they were in their 20s; ” said social worker Shea German-Tanner. Said.
Axios Back in 2018, he explained that America’s economy and culture had changed dramatically in the mid-to-late 20th century, with 25- to 34-year-olds still living with their parents.
Article further report In the mid-to-late 20th century, he said, the U.S. economy was “ripe for 30-year-old men,” who could buy homes, support larger family units, and build “high-paying careers.” .
Millennials in 2018 It found that their median salary was “lower than that of previous generations of 30-year-olds, putting them under greater financial strain and limiting how much they can reflect their parents’ lifestyles.”