The majority of Americans, 76 percent, are cutting back on spending, according to financial services company Wells Fargo’s money study. The percentage is higher among younger survey participants. A total 82 percent of Gen Z adults and 79 percent of Millennials are making cuts.
“Spending is one of the most important factors to staying on track with your goals,” Michael Liersch, Wells Fargo head of Advice and Planning, said. “I would encourage people to continue to evaluate their financial choices and align their spending with what matters most to them. Life happens and making incremental progress toward a goal and adjusting timelines along the way – including setbacks – are all a part of the process. Staying focused on what we want to accomplish can get us through the twists and turns of our financial journey.”
Nearly all of the respondents, 90 percent, say they are reacting to rising prices and that costs are between 55 percent and 200 percent higher than what they expected.
A total of 55 percent are delaying life plans to save money including delaying travel, 74 percent; home renovations, 39 percent; relocation, 30 percent; buying a home, 30 percent; education plans, 17 percent; getting married, 14 percent; and retiring, 13 percent.