Category Basics

In 2025, many Americans are adjusting how they spend money due to high inflation and steep tariffs—the highest in over a century, averaging 22.5%. These economic changes are making everyday goods more expensive, especially for lower-income families, who are feeling the impact more than wealthier households. As a result, people are spending less on non-essential items and focusing more on basics like groceries, healthcare, and household bills. Discount stores and cheaper store-brand products are gaining popularity, while luxury items are seeing fewer buyers. Still, U.S. consumers are showing resilience by continuing to spend carefully, especially on durable goods that last a long time, like appliances and furniture.

On Friday, August 29, 2025, millions of Americans receiving Supplemental Security Income (SSI) will get their monthly payment early—$967 instead of waiting until the usual September 1 date. This schedule change happens because Labor Day falls at the start of September, and the Social Security Administration (SSA) ensures payments arrive on time before holidays. This early deposit isn't a bonus in the traditional sense, but a regular payment made ahead of schedule. The $967 amount reflects the latest increase from the 2025 cost-of-living adjustment (COLA), which helps SSI benefits keep up with inflation and rising costs. These timely payments are especially important for low-income individuals, seniors, and people with disabilities who rely on this money for everyday needs.

Economists are starting to look more closely at how people in different income brackets spend their money to spot early signs of a possible recession. When wealthy people begin cutting back on buying expensive items—like luxury cars, second homes, or fancy vacations—it can be a red flag. These high earners usually have more savings and flexibility in their spending, so if they're hesitating, it could mean they're worried about the future. At the same time, if more shoppers are turning to discount stores instead of premium brands, it may point to wider financial stress in the economy. By watching these trends, experts hope to get ahead of economic slowdowns before they hit.

Generation Z is changing the way people think about money and spending. Instead of buying expensive items, many in Gen Z prefer to spend their money on experiences—like concerts, travel, and unique events—that create lasting memories. This shift is partly due to rising costs, fewer job opportunities, and the desire to live within their means. At the same time, Gen Z is embracing new financial technology (fintech) apps that help them save money, manage spending, and invest smarter. As a result, industries like travel tech, digital payments, and affordable entertainment are growing fast, showing how this generation is redefining what “value” really means.

In 2025, many Americans are changing how they spend money due to higher prices, an uncertain economy, and the strong impact of social media. While people are cutting back on things like gadgets and home gym equipment, they are still choosing to spend on experiences such as travel, eating out, and events. In fact, 59% of consumers are prioritizing these types of experiences over buying physical items. Social media plays a big role in shaping these choices, as many people want to share memorable moments online or are influenced by what they see others doing. This trend shows how digital culture is affecting not just what people buy, but why and how they spend their money.

Back-to-school spending in 2025 is being heavily impacted by the current economic challenges many families are facing. Inflation, increased import tariffs, and the rising cost of school supplies—especially technology like laptops and tablets—are driving families to spend more carefully. While middle- and high-income families are cutting back on their shopping by 7–9%, lower-income families are actually spending more than last year, not because they're buying more, but because prices have gone up. Experts say that the ongoing economic pressure, including slow wage growth and higher living costs, is forcing parents to focus on absolute necessities rather than optional items.