In the time of an economic slump in the United States, people are changing their habits to cut back spending and avoid a skinny wallet.
While people may have different definitions of a recession, 86 percent of people said their family is feeling the effects of the dwindling economy in a survey conducted by Money Management International, the nation’s largest nonprofit credit and debt counseling and education firm.
According to MMI, one out of every five people said that they have resorted to paying for necessities, such as groceries and gas, with credit cards.
Cate Williams, vice president of financial literacy for MMI, advocates allocating money responsibly when money becomes tight.
“Your mortgage or rent, electrical and other bills, and necessities like food come first, for the well-being of your family. Then, put money toward paying down your credit card bills, so your credit rating isn’t damaged,” Williams said.
Even small changes in your lifestyle can add up to significant savings.
MMI suggests buying generic brands, saving loose change, taking shorter showers, and packing a lunch from home to eat during work or school as daily habit changes to save money.
According to The Nielsen Company, “the world's leading provider of marketing information, audience measurement, and business media products and services,” during the upcoming holiday season, consumers can expect to see the economy’s status reflected on prices of holiday-related products.
During the Halloween season, U.S. consumers are expected to purchase more than $1.9 billion in candy, generating “the greatest sales volume of sweets for the entire year.”
Chocolate candy, which accounts for $1.2 billion of Halloween candy sales, has risen in price 4.2 percent since last year, while costume hair coloring prices have risen 125.5 percent, showing the greatest increase, according to The Nielsen Company.
Foreseeing holiday shopping, 35 percent of U.S. consumers across all income levels said they would spend less, according to a survey of more than 21,000 U.S. households by The Nielsen Company.
“The unstable economic environment is creating a high level of caution among consumers, leading us to conclude that this will be a tough holiday season,” said Todd Hale, senior vice president of Consumer and Shopper Insights for The Nielsen Group.
Hale predicted that retailers relating to consumers’ call for value will have increased attention from shoppers during the holiday season.
“Whether it’s lower prices, instant rebates or free shipping offers, value messages will speak to bargain-seeking consumers in today’s tough economic climate,” Hale said.
Reach the reporter at kalia.pang@asu.edu.
