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People are getting compliments for skipping gel manis for drugstore press-on nails. They’re flaunting how little they paid for Lululemon-dupes. They’re posting videos of cash-stuffed envelopes to show how much they haven’t spent. As many Americans shift to thrift, cutting back is more than sensible — it’s cool. Social media feeds are filling up with proud posts about setting “no buy/low buy” rules, and influencers are increasingly “deinfluencing” people from buying stuff. Post-pandemic “revenge spending” has been replaced with “revenge saving.” For many young adults, “nights out” are out. Data backs up the frugal trend: Spending at restaurants, bars, and hotels fell 11% in May, contributing to the smallest monthly increase in overall consumer spending since 2020. Americans’ personal savings rate (aka the % of disposable income that people save vs. spend) is ticking back up, rising to 4.5% in May from 3.5% in December. Workers are contributing a record share of their paychecks to their 401(k)s.Young, Smart, and Trying Not to Go Broke
The switch is especially noticeable among young adults. From January to April, purchases among people 18 to 24 were down 13% year-over-year, while spending among older groups rose, according to Circana market research data cited by the Wall Street Journal. Unemployment rates among Americans in their early 20s has ticked up this year as entry-level jobs get tougher to find. Meanwhile, for the first time since the pandemic began, not paying your federal student loans has serious consequences. So what? As tariff price-hikes loom and economic jitters grow, many Americans are tightening their belts. Here are a few ways to embrace financial restraint the cool way — and maybe even have fun doing it:• Go for the thrill of the “treasure-hunt”: Whether it’s poring through the racks at Ross or thrifting at a second-hand store, finding a hidden gem in the racks never disappoints. Plus, your friends will be impressed by that vintage Levi’s vest you discovered for $5.
• Go out by staying in: Join the Gen Z homebody trend by skipping $20 bar cocktails. Instead, host a cozy dinner party, a potluck buffet, a boardgame night, or a pizza-making experience at home. Your friends (and your wallet) will love you for it.
• Give DIY a try: Compliments feel even better when you can say you did it yourself. It doesn’t have to be as complicated as retiling your own kitchen, either. Instead of dropping $6 on a Starbucks latte, pull up a few videos and learn how to become your own barista (and maybe your own chef). Then post your creations.
• Make saving a game: Participate in one of the many challenges going viral on social media (like the 100-envelope challenge). Financial experts generally recommend setting aside enough to cover three to six months’ worth of living expenses in an emergency savings fund, and you can give yourself a little treat each time you hit one of your monthly goals.
• Curate “freemium” experiences: From concerts in the park and gallery openings to open-mic and line-dance nights, Googling free events near you can pay off. (Pro tip: Some things, like cultural events sponsored by foreign consulates, may even have free food.) Instead of paying $40 for a workout class, follow a tutorial or get friends together for a group backyard workout. Or, get some (free!) fresh air with an outdoor jog.
• Get creative with upcycling: It’s not just good for the environment — it’s also good for your wallet. You can upcycle by finding new purposes for old things (think: turning an ill-fitting skirt into a top, using plastic containers and candle jars as storage). Sustainability is always in style.
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Why We Need to Bring Back House Parties (TIME) Trade Tensions Drive Consumers to Cut Back. 'Something Has to Give,' Analyst Says (CNBC) What You Can Save By Doing It Yourself (SoFi)Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
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