Gen X is spending less on non-essential purchases due to rising necessity expenses

From Investing.com: 2024-09-28 07:00:00

Analysts from Bank of America reveal that Gen X discretionary spending has dropped by 2% year-over-year in August 2024. Rising necessity expenses like housing and utilities are squeezing funds for non-essential purchases. Gen X is prioritizing saving and investing over short-term consumption, with investments per household 40% higher than the average. The generation faces financial strain from supporting aging parents and adult children. Despite slower wage growth compared to other generations, the expense-to-wage ratio remains stable. While a future “great wealth transfer” may benefit Gen X, reduced spending is likely to continue due to ongoing financial pressures.



Read more at Investing.com: Why the slowdown in Gen X’s spending? By Investing.com