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Spending cuts are most popular preparation for a recession for most Americans

Recent Bank rate survey data indicate that a lot of Americans are cutting back on spending as they prepare for an impending recession.

A recession is actively being prepared for by almost three out of four respondents. There is a 47 percent reduction in discretionary spending, 35 percent increase in emergency savings, 30 percent pay off credit card debt, 24 percent seeks additional/steady income, and 19 percent increase retirement savings.

When questioned as to how prepared they are for a recession before the end of 2023, 42 percent of respondents said they were “somewhat prepared, while 17 percent were “very prepared” for the economic situation, states an Aug. 24 Bankrate post detailing the results of the survey. While 24 percent admitted to being “not too prepared,” 17 percent said they were “not at all prepared.”

A 32 percent unprepared rate was found for those making between $50,000 and $79,999. Individuals earning between $80,000 and $99,999 had a 21 percent success rate, while people earning over $100,000 had a 24 percent success rate.

Approximately 40 percent of Gen-Zers-aged 18 to 25-are neither prepared for nor taking steps to prepare for a recession, according to an August survey reported on September 26 by Bankrate. Such behavior has been labeled "recession fatigue" by experts.

27 September 2022

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