Inflation Is Changing What Your Neighbors Buy

Additional Coverage:

11 Everyday Purchases Smart People Are Ditching in 2025 (financebuzz.com)

The U.S. economy has many Americans feeling like they’re on a roller coaster of uncertainty. With over 60% expressing fears of an impending recession, according to market research firm Ipsos, concerns about future financial stability are very real. Many are especially worried about maintaining savings on everyday essentials amidst ongoing inflation and tariffs.

As a result, a growing number of consumers are rethinking their purchasing habits for 2025, opting to cut back on certain items. Here’s a look at what many are choosing to skip.

1. Bread

The trend of making food from scratch is rising, and home-baked bread is a prime example of where savings can be found. Depending on ingredients, a homemade loaf can cost around $1.50, significantly less than store-bought options ranging from $2 for standard sandwich bread to $5 for artisan varieties. Beyond the financial benefits, baking at home offers mental perks; market intelligence group Mintel reports that over 40% of home bakers find comfort in the process.

2. Salad Dressings

Another kitchen staple people are opting to make rather than buy is salad dressing. Simple ingredients make a DIY approach easy, often resulting in a healthier and tastier product. One estimate suggests that for someone eating salad every other night, homemade dressing could cost about $120 annually, compared to roughly $250 for store-bought bottles.

3. Paper Products

Many consumers are making the switch from disposable paper towels to reusable cloths and rarely look back. Considering a single sheet of a popular brand costs about $0.02, the expenses for 135-sheet rolls can quickly accumulate. This principle also applies to tissues, with high-quality handkerchiefs gaining favor, aligning with a broader shift towards more eco-friendly shopping habits among consumers.

4. Brand New Clothing

The appeal of second-hand clothing is growing as shoppers discover they can purchase nearly identical, lightly worn items for significantly less. Many estimate savings of 25% to 50% on pre-loved items, offering substantial savings depending on how much of one’s wardrobe is sourced this way.

5. Fast Food

Once synonymous with convenience and affordability, fast food has seen a notable increase in prices. Recent data indicates that fast food costs have surged anywhere from 39% to 100%, a change consumers are certainly noticing. For those aiming to save on dining out, relying on fast food may no longer be the budget-friendly option it once was.

6. Brand Names

A noticeable trend involves consumers moving away from popular brand names in favor of more affordable “dupes” or generic alternatives. On average, generic products cost about 40% less than their name-brand counterparts. Many buyers are conducting blind taste tests and finding little difference in quality, leading to potential savings of hundreds of dollars annually.

7. Dryer Sheets

Dryer sheets are another household item consumers are eliminating from their regular shopping lists. Beyond the cost savings, there’s a growing awareness of volatile organic compounds (VOCs) and other chemicals often found in these products.

Dryer sheets can also leave residue on appliance sensors, potentially reducing their effectiveness. Alternatives include reusable dryer balls or simply opting for natural air drying, which can also trim utility bills.

8. Processed Snack Foods

Processed snack foods have become considerably more expensive in recent years. This rise in price is attributed to several factors, including increased costs for ingredients and raw materials, disruptions in supply chains, higher transportation expenses, and labor shortages. With snack prices up 22% compared to five years ago, consumers are cutting back or seeking more affordable alternatives.

9. Cars

There’s an overall decline in new car sales, with reports indicating that even high-income households are reconsidering such purchases. The average price for a new vehicle in the U.S. now stands at approximately $48,205, effectively pricing some income brackets out of the new car market. Adding to the challenge, used car prices have also reached record highs, leading many to delay purchases or invest in repairing older vehicles.

10. Cable and Streaming Services

The “cord-cutting” phenomenon, where fewer people subscribe to traditional cable TV, continues. While Netflix pioneered streaming in 2007, leading to over 80% of households having at least one streaming service today, many Americans are now canceling subscriptions as they tighten their budgets. Price is the primary reason, with one in four consumers citing that streaming services no longer fit their financial plans.

11. Any “Non-Essential” Item

Born out of “inflation fatigue,” the “no buy movement” has gained traction among Americans. Participants pledge to halt purchases of non-essential items for a set period, from a month to a year, often leading to substantial savings. One individual reportedly saved $10,000 in a single year, demonstrating the potential for significant financial control through this trend.

Bottom Line

For many Americans, finances are a leading source of stress. To alleviate some of this pressure, becoming more mindful of spending habits is key. Now is an opportune time to create a budget, consider a “no-spend” challenge, or adapt purchasing behaviors before financial pressures become overwhelming.

Optimizing your finances is always possible, regardless of your current bank account balance. Here are a few strategies to consider:

Prioritize Debt Repayment: Debt can hinder financial progress. Beyond cutting expenses, tools like balance transfer credit cards or debt counseling can accelerate repayment.

Boost Your Income: If finances are tight, earning extra money can provide much-needed breathing room. This could involve exploring a new job or taking on a part-time side hustle.

Reduce Expenses: While it may seem daunting, cutting expenses doesn’t have to be painful. Focus on your largest expenditures for the most significant savings.

For example, with soaring auto insurance rates, shopping around for a new provider could quickly lower your bill. Similarly, using the right travel credit card can help offset vacation costs.