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Heres a look at howmiddle-class spendinghas changed post-pandemic and the factors driving these shifts.
Increased Cost of Living
Middle-class families have faced a notable increase in the cost of living.
The high cost of basic necessities has made it challenging for families to allocate funds towards non-essential items.
However, post-pandemic, many middle-class families have dipped into their savings to cover rising costs.
Additionally, debt levels have increased as people rely more on credit to manage expenses.
A Bankrate survey found that Americans are more than twice as likely to feel financially insecure than secure.
Middle-class families are also struggling to save for the future.
Impact of High Interest Rates
High interest rates have further complicated financial planning for middle-class families.
This has led to amore cautious approachtowards large investments and a greater focus on managing existing financial commitments.
Financial Insecurity and the Middle-Class Identity
The sense of financial insecurity among the middle class is growing.
householdsstruggle to afford basic necessities.
This often means cutting back on discretionary spending and finding ways to reduce everyday expenses.
Automated savings apps, budgeting software, andfinancial planning platformscan provide personalized advice and help optimize savings.
With rising costs of living and high inflation, traditional savings advice may no longer be sufficient.
