logo
No buy, low buy, slow buy: How many consumers are preparing for an economic hit

No buy, low buy, slow buy: How many consumers are preparing for an economic hit

Business Mayor09-05-2025

Americans have been worried about being able to maintain their standard of living since inflation first began to spike in 2021. With renewed cost concerns after President Donald Trump implemented his tariff agenda, many people are prepared to do something about it.
A whopping 83% of consumers said that if their financial situation worsens in the coming months, they will strongly consider cutting back on their non-essential spending, according to a new study by Intuit Credit Karma, which polled more than 2,000 U.S. adults in April.
On TikTok, money saving hacks, with hashtags such as no buy, slow buy, low buy and underconsumption, have skyrocketed in popularity, especially among young adults. All are aimed at making the most of what you already have and resisting the temptation to buy more stuff, or even anything at all. How no buy, low buy and slow buy challenges work Why savings challenges are so popular
To be sure, Americans are feeling the pain of higher prices, with various reports showing many have exhausted their savings and have been leaning on credit cards to make ends meet.
With sweeping U.S. tariffs now going into effect, concern is heightened about the rising cost of goods and making ends meet, especially as the economy shows signs of contracting.
'Consumers are going to have to pay for the increase in prices these tariffs are going to cause and there is no way around it,' said Eugenio Aleman, chief economist at Raymond James. 'The alternative is to reduce consumption, especially in discretionary items.'
More from Personal Finance:
Is now a good time to buy gold?
Why tariffs will hurt low income Americans more than rich
What stagflation risks mean for your money
A survey by Gallup last month found that inflation, housing costs and lack of money are the most commonly cited financial challenges by U.S. adults.
According to the poll, which was conducted during a period of extreme market volatility after the Trump administration announced new tariffs on most U.S. trading partners, a record 53% of consumers said their financial situation was getting worse, while just 38% said it was getting better. Additionally, 57% worried about not being able to maintain their standard of living.
A separate report by Bankrate found that 43% of adults said money now negatively affects their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep and depression.
'Tariffs, inflation, higher interest rates and a recession are all forces that Americans can't prevent, no matter how much they want to,' Sarah Foster, Bankrate's economic analyst, said in an email. 'Taking proactive steps to manage your finances can provide a sense of stability and security.' Read More Top 5 flexi-cap funds with up to 23.58% returns in 5 years A better way to improve your finances
Financial experts say TikTok's latest microtrends can provide a short-term boost to help reach some savings goals, however, there is no substitute for practicing good long-term habits.
'Ignore what others are doing with their money,' said Daniel Milan, managing partner of Cornerstone Financial Services in Southfield, Michigan. 'That to me is a very foundational tenet for any household.'
Milan says financial planning starts with a budget. 'People don't like that word,' he said. But rather than jumping on the latest TikTok trend, 'sit down and pencil out what you actually are spending.'
Milan recommends flagging excess expenses that can be cut, considering which are 'wants' or 'needs.' Milan says he did this himself at the start of the year after getting married, and was able to cut out some recurring bills as well as subscription services that overlapped with his wife's — to the tune of $800 a month.
'That type of exercise can be extraordinarily powerful from a cash flow perspective,' he said.
Subscribe to CNBC on YouTube.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

TikTok creating more than 500 new British jobs as UK users top 30 million
TikTok creating more than 500 new British jobs as UK users top 30 million

Yahoo

time28 minutes ago

  • Yahoo

TikTok creating more than 500 new British jobs as UK users top 30 million

TikTok creating more than 500 new British jobs as UK users top 30 million TikTok has unveiled plans to create more than 500 new British jobs and open a second office in London as it cheered passing the 30 million milestone for users in the UK. The Chinese-owned social media firm said its UK workforce would expand to 3,000 this year as part of its 'deep commitment' to the UK. It will also open a new 135,000sq ft office in London's Barbican, which is set to open early next year. The group already has its UK headquarters in Farringdon, London, which were opened in 2022. TikTok unveiled the plans as it said it now has more than 30 million regular users in the UK each month, which makes the market is biggest user community in Europe. ADVERTISEMENT Adam Presser, director of TikTok UK and global head of operations and trust and safety, said: 'Whether through direct investment in jobs and innovation, or the wider economic contribution from millions of British businesses on TikTok, we're pleased to be increasing our investment and presence here in the UK, an important hub for TikTok.' But it comes after Cabinet minister Pete Kyle signalled he was looking at measures to restrict the amount of time children spend on their phones, including through a possible 10pm curfew. Mr Kyle was asked on Sunday morning whether he would look at limiting the time children spend on social media to two hours per app after the Sunday People and Mirror reported the measure was being considered by ministers. The Online Safety Act has passed into law, and from this year will require tech platforms to follow new Ofcom-issued codes of practice to keep users safe online, particularly children. Hefty fines and site blockages are among the penalties for those caught breaking the rules, but many critics have argued the approach gives tech firms too much scope to regulate themselves. ADVERTISEMENT TikTok's Mr Presser said that, as well as its UK expansion plans, the group also invests 'significantly' in safety. The firm launched its UK operations in 2018 (James Manning/PA) He said: 'What underpins our continued growth is our deep commitment to safety and to creating an enjoyable and secure digital space to sustainably support creators, entrepreneurs and the wider economy, which is why we also invest significantly in safety.' TikTok first launched its UK operations in 2018 and is financially incorporated in Britain. The group was fined 530 million euro (£446 million) by the Irish data protection watchdog last month for breaching EU privacy rules around transferring user data to China. The video-sharing app was also sanctioned for not being transparent with users about where personal data was being sent and ordered the platform to comply with data protection rules within six months. ADVERTISEMENT TikTok said it would appeal against the decision. The social media giant, which is owned by China-based ByteDance, has been under scrutiny from regulators around the world over how it handles personal data, and is also facing a ban in the United States over its China links, which the US government has said is a national security issue.

Mortgage Rates Today, June 9, 2025: 30-Year Rates Drop to 6.87%
Mortgage Rates Today, June 9, 2025: 30-Year Rates Drop to 6.87%

Wall Street Journal

time28 minutes ago

  • Wall Street Journal

Mortgage Rates Today, June 9, 2025: 30-Year Rates Drop to 6.87%

Mortgage rates are down and still under 7%. Today's national average on a 30-year fixed-rate mortgage is 6.87%, according to Bankrate. If you choose a 15-year fixed-rate mortgage, the average rate is 6.09%. Interest rates are down compared to last week for new mortgages but higher for refinances as the summer housing market gets off to a slow start. The period between April and June is typically the time that home sales see the most activity, but this year's sales have been hampered by stubbornly high mortgage rates, economic concerns and elevated home prices. Home sales fell 2% in April compared to the previous year, marking the slowest sales pace since April 2009. While housing supply has picked up in some parts of the country, like Florida and Texas, uncertainty has left many prospective buyers hesitant to take on a major purchase. The May jobs report showed slow hiring and flat unemployment, highlighting the uncertainty surrounding tariffs and the nation's economic outlook. A volatile bond market also has many would-be homebuyers waiting on the sidelines for more stability or lower mortgage rates. Top mortgage rates today Current mortgage rates are down and lower than they were seven days ago and lower than in early 2025, when the average 30-year fixed-rate mortgage reached above 7%. Even though Federal Reserve policy doesn't directly impact today's mortgage rates, they have been easing since the Fed began cutting rates in late 2024, and policymakers have been holding rates steady in 2025. Mortgage rates change regularly, so compare offers and consider the personal and market factors that influence your quoted mortgage rate.

5 Ways Trump's ‘Big, Beautiful Bill' Could Impact Your Wallet
5 Ways Trump's ‘Big, Beautiful Bill' Could Impact Your Wallet

Yahoo

time41 minutes ago

  • Yahoo

5 Ways Trump's ‘Big, Beautiful Bill' Could Impact Your Wallet

President Donald Trump's 'big, beautiful bill,' which has passed in the House of Representatives, has sparked fierce debate. While the bill promises growth and relief in some areas, it also introduces cuts, cost shifts and structural changes that could impact everything from healthcare premiums to loan payments — and affect the budgets of everyday Americans. Read Next: Check Out: Here are five key ways this sweeping legislation could affect your wallet. One of the bill's most consequential provisions is the move to make the 2017 tax cuts permanent. Experts said these tax cuts could extend financial relief to many individuals and families, encouraging long-term economic growth. 'These tax cuts provide much-needed relief to small businesses and individuals and encouraged billions of dollars in economic activity and investment,' said Javier Palomarez, founder and CEO of the United States Hispanic Business Council. 'Extending these cuts would allow businesses to invest and grow at a faster rate.' He explained that these cuts could have a positive impact overall. 'Extending these cuts could have a far greater, and a more positive impact than changes to SNAP or Medicaid,' he said. Learn More: One overlooked consequence of the bill is how it could quietly raise the cost of borrowing across the board. From home mortgages to car loans, everyday Americans could find themselves paying more to afford basic milestones. 'The proposed legislation could increase your expenses by increasing your mortgage payments for a house,' said Steven Conners, founder and president of Conners Wealth Management. 'Mortgage rates are high but still going up. Furthermore, this doesn't count higher loan rates for car loans and other purchases that are more significant in price, where we ordinarily buy them through a loan which is based off the bond market.' He added that the bond market is already reacting to the bill, signaling that borrowing costs could keep rising. With national debt on the rise and no clear ceiling for interest rates yet, Conners said that the overall trend points toward more expensive loans. According to a bill analysis by the Center on Budget and Policy Priorities, by 2034, about 16 million people could lose health coverage and become uninsured due to a variety of proposals in the bill, including Medicaid cuts. Middle-income families who rely on Affordable Care Act (ACA) support or Medicaid expansion could also be affected. 'Premiums will most likely increase,' Conners said. 'For those less fortunate, Medicaid will see less funding, which ultimately puts more pressure on this part of the population.' Working families who rely on SNAP benefits could feel the sting of the bill almost immediately. A combination of benefit reductions and new restrictions could make it more difficult for many households to afford sufficient food. 'The most immediate impact will be the reduction of benefits received by those enrolled in SNAP,' Palomarez said. He explained that these cuts, as well as the administration's push to have states restrict SNAP-eligible items, could result in strained food budgets for many Americans. While many assume that cutting SNAP benefits would affect only low-income households, the impact can ripple across entire communities and state economies. A Commonwealth Fund analysis found that reduced food assistance can lead to job losses and decreased business activity, even in places far from where the cuts occur. For instance, groceries purchased in Georgia might support farmers in Kansas or processors in Tennessee, and a clinic closure in Louisiana could result in a nurse losing her job in Texas, per The Commonwealth Fund. One of the bill's measures targets the opaque practices of pharmacy benefit managers. 'Certain provisions related to pharmacy benefit manager (PBM) reform have the potential to significantly lower prescription prices for everyday Americans,' Palomarez said. 'Unlike the strict price control measures threatened by the administration earlier this year, the Big Beautiful Bill relies on transparency with consumers and mandated reporting to NADAC to ensure consumers can make the most informed decisions.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Cities You Need To Consider If You're Retiring in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 5 Ways Trump's 'Big, Beautiful Bill' Could Impact Your Wallet Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store