Most Americans expect a recession within the next 12 months and are feeling increasingly uncertain about their financial future.
Instead of spending less, many consumers are changing how they shop by chasing discounts, buying in bulk, and abandoning brand loyalty.
Financial experts say treating savings opportunities like coupons and cashback as part of your budget can help combat inflation.
Rising prices are once again putting pressure on household budgets, and many Americans are worried the situation could get worse before it gets better.
New research from online shopping rewards platform Smarty found that two-thirds of consumers believe the U.S. economy will enter a recession within the next year, while more than half describe their financial future as uncertain.
The biggest financial pain points continue to be everyday essentials. Nearly three-quarters of Americans say grocery prices have been one of the most difficult increases to absorb, while many are also feeling the strain of higher transportation and gas costs.
As inflation remains stubbornly high, consumers are adjusting the way they shop, save and plan for the future. ConsumerAffairs spoke with Vipin Porwal, CEO of Smarty, who explained that rising costs are no longer viewed as a temporary challenge but as a reality that households are learning to navigate. He shared insights on how consumers can prepare their budgets, stretch their dollars further, and build financial resilience in an uncertain economic environment.
Inflation: from shock to lifestyle constraint
Porwal explained that many consumers are past the phase of feeling shocked about inflation and consistently rising prices. Instead, they’ve started adapting their lifestyles to this new “normal.”
“The initial shock has worn off because this is our new reality,” Porwal said. “Consumers have realized inflation isn't a passing storm, so they're simply adapting.
“In my own house, for example, we finally stopped waiting for our favorite local takeout spot to lower their delivery fees. Instead, we bought a decent pizza oven for the backyard. We realized those inflated Friday night food costs aren't reverting, so we changed our lifestyle to work around it.”
Restructuring how you buy
Smarty’s research found that over 50% of Americans are uncertain about their financial futures. However, rising prices haven’t stopped consumers from spending. Instead, they’re just adjusting how they shop.
“Groceries and gas were identified as the most painful price increases,” Porwal said “You can't just stop buying food or driving, so people are restructuring how they buy.
“We're seeing consumers ditch brand loyalty completely. Personally, I used to be a die-hard loyalist to one specific grocery store. Not anymore. Now, my weekend routine is hitting up Costco for bulk proteins and a local discount grocer for pantry staples, and I refuse to fill up my gas tank anywhere other than the station tied to my grocery rewards. It's a bit more running around, but the savings are undeniable.”
Rethink your budgeting
With price increases hitting consumers just about everywhere, Porwal’s best advice is to let go of the “set it and forget it” mindset when it comes to your expenses.
On top of that, he recommends shoppers start treating cashback and coupons as actual income rather than a nice bonus.
“I sat down a few weeks ago and audited my own credit card statement,” he said. “I was paying for three different streaming services I hadn't watched in months and a premium app I forgot to cancel. Slashing those instantly put about $50 back in my pocket every month, which perfectly covers the exact amount my weekly grocery bill has crept up.”