Consumers Spending Less

After a brief spurt of spending in May (thanks, no doubt, to economic stimulus checks), it appears that consumers are starting to cut back again With gas prices what they are, many are spending less at the store and going back to the old “recession diet.” Indeed, it appears that purchases that would have been considered “basic” not too long ago are now considered “unnecessary.”

The Street reports on information about consumers and their spending habits:

Overall, 55% of consumers said they have started to cut back on living expenses. Not surprisingly, those in lower income brackets are being hit hardest. About 70% of those earning less than $40,000 per year said they have reduced basic expenses to offset higher gas prices, which are now averaging $4.11 per gallon across the country.

Living frugally is being forced on many of us. We are being forced to prioritize and make tough choices. But here’s the real question: Will we learn to live frugally all the time? Or will we go back to our free spending ways when the current crisis is over?

image source: sxc.hu