Compared to last year, people are spending more money this summer. Some of these people got extra money from Payday Champion.
As the economy begins to recover, the typical American is spending $765 more each month than they were last year, according to a recent poll performed by MassMutual. To put that in perspective, it’s a significant rise over the typical full-time worker’s weekly take-home pay before taxes ($990).
In March, nearly half of the 1,000 respondents questioned by insurance and financial services business MassMutual said they were motivated to spend more this summer by what they saw on social media. Millennials and Gen Zers, driven by FOMO (fear of missing out), attend more events and spend more money. According to the poll, spending by each age group increased by more than $1,000 per month compared to the previous summer.
MassMutual’s study of Gen Z-ers revealed that virtually all of them — 90 percent — believed that social media influenced their summer spending.
Two most popular ways Americans spend their extra money
Dining out and vacationing are the two most popular ways Americans spend their extra money. Some 33% of those polled said they had increased their spending on such areas this year after avoiding them throughout the summer. Survey results are corroborated by statistics showing an increase in restaurant sales of roughly 2 percent in the previous month. U.S. airports have seen a dramatic increase in passengers in the last year.
As more people travel, vacation rental costs rise, and hotel prices touched an all-time high last month. According to Airbnb, revenues are up significantly compared to the previous year, indicating that passengers are upbeat and confident about their upcoming vacation plans.
However, not all investors are confident in the trend’s continuation, such that Airbnb’s stock price plummeted following its results call earlier this month. It has also been noted by credit card firms that the emergence of the Delta variation may be preventing some Americans from booking flights shortly.
Overall, though, people’s saving habits decrease as they spend more.
The epidemic made the United States a saver country, but recently, that tendency seems to be reversing. According to a study conducted by MassMutual in April, just 36 percent of individuals asked said they had saved less than $500 in the last three months.
That’s a dramatic shift from a few weeks ago when consumers splurged on gadgets and online shopping.
Shockingly, stimulus funds fueled consumer expenditure on necessities that might be used at home during the epidemic. They’ve recalculated things now. Home Depot had seen a decrease in the number of consumers lately when before the epidemic, they were going on shopping sprees for home improvement projects.
Analysts believe that spending on services like restaurants and tourism will likely continue to trend away from purchasing products.