June 13th, 2022
Springfield, Mass. – June 14, 2022– With inflation now at the forefront of many Americans’ financial concerns, summer plans are poised to be dramatically different this year according to the latest Consumer Spending & Saving Index from Massachusetts Mutual Life Insurance Company (MassMutual).
In addition, this new research dives deeper into the perspectives of the BIPOC and LBGTQ+ communities to examine how they are reacting to today’s economic pressures.
Notable findings include:
“This latest iteration of our Spending & Saving Index underscores the significant financial toll inflation has inflicted on Americans, including the LGBTQ+ community and people of color,” said Mike Fanning, he/him, head of MassMutual U.S. “In many cases, inflation has exacerbated the already damaging financial effects of COVID and is extending many financial habits developed during the pandemic such as dining out less.”
Inflation is upending Americans spending and savings habits. Americans are paying more for gas and groceries and cutting corners by delaying major purchases and investing less. Some are also turning to more volatile investments like cryptocurrencies.
Many Americans are rethinking their summer spending plans with restaurant, clothing and travel industries likely continuing to feel the budget cutbacks that began during COVID.
In the LBGTQ+ community, women plan to spend significantly less this summer. Average monthly summer spending for respondents identifying as LBGTQ+ is $1,920, with men spending significantly more than women on average ($2,136 vs. $1,756).
The BIPOC community leads among groups with their average monthly summer spending at about $3,150 each month.
Sending the kids to summer camp is now a fraught decision.
“It appears this summer will not be a return to normal,” said Fanning. “Americans will have to grapple with stubborn inflation, and business owners will likely continue to see uneven results, all while the specter of COVID still looms. However, Americans who are establishing good financial habits and are able to take a long-term approach to their financial planning are likely best prepared to weather the storms ahead.”
The MassMutual Consumer Spending & Saving Index tracks financial outlooks and behaviors in a changing economic environment. It offers an in-depth snapshot of people’s saving and spending behaviors and examines sentiment and attitudes toward navigating the financial impacts of the pandemic and the changing state of the economy with an emphasis on inflation, changes in interest rates and summer spending. Commissioned by MassMutual, the research was conducted online by PSB Insights from May 16-24, among a nationally representative sample of 1,000 U.S. adults (ages 18+) as well as additional samples of 500 U.S. LQBTQ+ adults, 500 U.S. BIPOC adults, and 500 adult Massachusetts residents.
Links to prior indexes:
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. Founded in 1851, the company has been continually guided by one consistent purpose: we help people secure their future and protect the ones they love. With a focus on delivering long-term value, MassMutual offers a wide range of protection, accumulation, wealth management and retirement products and services. For more information, visit www.massmutual.com.