More Than Half of Adults Have Delayed a Major Financial Milestone Due to State of Economy
A recent Bankrate.com survey found that 53 percent of American adults have delayed a major financial milestone because of the state of the economy, including milestones like renovations or home improvements (25 percent), buying or leasing a car (21 percent), or purchasing a home (15 percent).
“Whether it be inflation, rising interest rates, recession fears, market volatility, or something similar, concerns about the economy are high,” said Greg McBride, chief financial analyst. “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 1 in 8 saying the impact has been positive.”
Other financial milestones being put on hold include furthering education (10 percent), retiring (9 percent), getting married (7 percent), having children (7 percent), and seeking employment advancement (7 percent). Americans are also avoiding activities like going to amusement parks, movie theaters, zoos, and professional sports events.
57 percent of U.S. adults said their quality of life has been negatively impacted by the economy, with 34 percent of those saying the economy had a “somewhat negative” effect and 22 percent saying it had a “very negative” effect. Only 12 percent said their quality of life has improved, and 31 percent said it has stayed the same.
Millennials are the most likely to have postponed at least one financial milestone at 64 percent, compared to 46 percent of baby boomers. Millennials and Gen Zers were also most likely to opt out of activities or events, with forgoing a vacation and dining out being the most commonly skipped activities.
“Over 1 in 3 (37 percent) Americans have skipped taking a vacation in the past year due to the state of the economy,” McBride said. “This tends to be the first discretionary expense to get cut when households are queasy about the economic path ahead.”