Americans spending more money in summer months
TOPEKA, Kan. (WIBW) - A recent study shows that Americans spend the most money during the summer.
TopCashback.com says a recent study it conducted shows that 45% of Americans are spending the most money during the summer.
The cashback website says about 30% of Americans are also expecting to increase their spending this summer.
According to the survey, compared to spending in summer, only 35% of respondents said they spend the most during the winter, 11% said during the fall and 9% said during the winter.
The survey also says compared to previous years from June to August 54% of respondents said their spending typically increases, 37% said it stays the same and 9% said it decreases.
The website says 76% of respondents said they do not have travel plans this year, many are spending necessities instead. It says 35% of Americans are spending on home updates, 35% are buying food in bulk, 34% are spending on summer at-home activities, 28% are spending on clothes and 19% are spending on back to school items.
According to TopCashback, in previous years spending usually revolved around public places and traveling. It says 57% of respondents said they used to spend on family vacations, 42% said summer clothes, 41% said entertainment, 40% said social activities and 28% said buying food in bulk.
As for this year’s budgets, the cashback website says only 28% of respondents set a summer budget while 37% they usually do. It says 72% said they did not set a budget while 63% usually do not.
“Blowing through your summer budget can often lead to playing catch-up when fall comes around, making it harder to cover recurring bills plus the overspending from the summer,” explains Rebecca Gramuglia, Personal Finance Expert at TopCashback.com. “To combat summer spending, it’s important to plan and budget at least six to 12 months in advance.”
Gramuglia says she recommends the following tips to save this summer:
- Budget: She says to plan ahead and budget accordingly. She says a basic budgeting tool made for progress can set Americans up for financial success is the 50/20/30 rule which means you would only spend 50% of your income on essentials like housing, 20% on financial priorities like debt repayments and 30% on lifestyle choices like vacations. She says another option is to try a no-spend week or month while budgeting.
- Start a summer fund: She says saving money is essential for financial stability and setting up a fund for summer can keep Americans from spending too much. She says to save for summer-related activities like DIYs, staycations and shopping. She says adding money that was not expected to the fund is a good way to ensure for some more summer fun.
- Shop Smart: She says with fall approaching outdoor furniture, bathing suits and pool floats will go on sale and to keep in mind that seasonal items are usually marked own at the same time every year.
- Cut unnecessary costs: She says to look at monthly expenses and narrow down what you could do without. She says whether it is a subscription cleanse, deactivating duplicate accounts or carpooling, money saved can go to your summer savings instead.
- Earn credit card rewards: She says the best way to get the most bang for your buck is by taking advantage of added on bonuses that come with spending money. She says credit cards allow consumers to earn rewards and cashback on purchases they make and depending on the card they could receive a percentage of the money they spend back in the form of rewards or cashback.
For more information on the study, visit TopCashback.com.
Copyright 2020 WIBW. All rights reserved.