Even Wealthy Americans Are Bargain-Hunting

By: Anneken Tappe · June 06, 2024 · Reading Time: 2 minutes

Changing Habits

The pandemic has changed the spending behaviors of many Americans. We spend big on experiences and events, even luxuries, despite headwinds like inflation and high borrowing costs. Meanwhile, grocery costs have remained high, and consumers across the income spectrum are trying to find ways to save.

How Are Americans Feeling?

More than two-thirds of Americans — including the majority of high earners making at least $200,000 per year — plan to do more discount shopping this year, according to a survey by accounting and advisory firm KPMG.

In recent years, Americans have experienced first hand just how quickly household staples like eggs can surge in price. Consumer price inflation peaked in June 2022, but as inflation still hovers above 3%, this long period of rising prices has left even wealthy Americans hunting for deals.

What’s Next?

Market observers have been eagerly waiting for the Federal Reserve to start cutting interest rates, which were first raised to combat high inflation. But lower rates on mortgages and other loans won’t change the price of groceries. A lot of inflation is “sticky,” meaning that prices don’t come down often once they’re up.

For consumers, the crux is this: If you have loans of some kind, lower interest rates might help you pay less in your monthly bills, or make refinancing your loan a compelling choice for your financial health. Those Americans who have more discretionary income may then forego discount shops again, but lower earners won’t necessarily have this option.

That said, retailers, including Amazon (AMZN), Walmart (WMT), Target (TGT), are more aware of changing shopping behaviors and have been slashing prices in response.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

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.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender