According to a new Bankrate study released on November 17, 2022, a majority of U.S. adults have opted out of certain events due to the state of the economy.
The study reports that not just major financial milestones are being delayed, but 58 percent of Americans have opted out of certain activities or events in the past year due to concerns about the economy like taking a vacation (37 percent) and dining out with friends or family (28 percent).
Greg McBride, CFA, Bankrate's Chief Financial Analyst said in a statement "whether it be inflation, rising interest rates, recession fears, market volatility, or something similar, concerns about the economy are high, with the majority of Americans delaying financial milestones and opting out of certain activities or events because of it. The overwhelming sentiment is that the state of the economy has had a negative impact on Americans' quality of life over the past year, with just one in eight saying the impact has been positive."
McBride goes on to say that "revenge spending in travel has been particularly robust, with full flights and sold-out hotels. But just how much stronger could it have been? Over one in three (37 percent) of Americans have skipped taking a vacation in the past year due to the state of the economy. This tends to be the first discretionary expense to get cut when households are queasy about the economic path ahead."
Key highlights of the Bankrate study include:
-Those negatively impacted by the economy are more likely to delay a major financial milestone than those either positively or not at all impacted.
-Millennials (ages 26-41) are the most likely generation to make delays in financial milestones.
-Many are opting out of activities. About two-thirds of millennials and Gen Zers (ages 18-25) are opting out of activities due to the economy compared to 59 percent of Gen Xers (42-57) and 50 percent of Baby Boomers.
-Women and middle-income earners are more negatively impacted.
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