Key insights
- A recent survey indicates that many Americans are skipping social events due to cost, reflecting persistent inflationary pressures and declining consumer sentiment. The University of Michigan's survey shows a worsening economic outlook across various demographics. This pullback in discretionary spending could signal weakening consumer demand, potentially impacting corporate earnings and leading to a slightly bearish outlook for US equities.
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Even fun is getting too expensive for many Americans.
In a survey by the Certified Financial Planner Board (CFPB), two-thirds of Americans said they have skipped out on a social event at least once in the last two years because of the expense associated with it.
The most common events people say they declined were group vacations (30%), dining out or participating in nightlife (30%), going to a concert or sports game (28%), or celebrating a holiday with family (23%).
Although inflation has declined over the past few years, price increases—caused by geopolitical conflict, tariffs, and other factors—still weigh on consumers.
Most Americans report having to skip a social event because of cost, but being on a budget doesn't have to ruin your social life. Try being honest with your friends and family about what you can and can't afford, and suggest more affordable alternatives.
Preliminary results from a University of Michigan monthly survey found that consumers felt worse about the economy in March than they have so far this year. And their expectations for the future are equally dour: Americans of all incomes, ages, and political affiliations reported a declining outlook for their personal finances.
And with more than one in ten Americans (16%) reporting that they feel lonely or isolated most or all of the time, having to skip out on social interaction due to cost may be detrimental to people's well-being.
Yet just because you can't afford to attend a friend's birthday dinner or splurge to see a football game with your family doesn't mean you need to forgo spending time with your loved ones.
Kelly Reddy-Heffner, a certified financial therapist and owner of Steel City Wealth Collaborative, recommends suggesting alternatives to social plans they can't afford.
For example, instead of going to a pricey restaurant for brunch, you could suggest grabbing bagels and eating them in the park.
In the CFPB survey, half of the people (56%) who didn't go to a social event due to the cost didn't tell their loved ones why they skipped out. While Reddy-Heffner suggests that it isn't necessary to be fully transparent with your acquaintances, you can try being honest with your closer friends.
"If it's someone [you know] casually, you could be succinct: 'Hey, I'm not available to do that, but I could do this on whatever date'," Reddy-Heffner said in an interview earlier this year. "As the relationship becomes more substantial, hopefully, it becomes more comfortable to have those conversations."