When Times Are Tough, Americans Spend Anyway

Consumer confidence may be down this summer, but it hasn't really diminished the American Shopper's desire to do (and acquire) some neat stuff. I read a very interesting article over on CNN regarding our spending plans over the next few months. Here are a few excerpts:

Nine out of 10 Americans said they are cutting back expenses or discretionary spending at least somewhat because of the current economic conditions; according to a recent study from market research firm GfK Roper Consulting.

Only 11% of Americans believed it was a good time to buy things they want or need, down from 16% a year earlier.

Here's the interesting part(s):

Many Americans are leaving the car in the garage and staying on their living room couch. A whopping 50% of Americans plan to buy an HD or flat-panel TV in the next year, the study showed, with little difference between those who are hardest hit by the downturn and those who are not. Cable and satellite TV subscriptions are also way down the list on cutbacks.

Even in these tough times, 59% of Americans plan to take a trip of 100 or more miles in the next six months - only slightly below the 61% average of recent years.

But that doesn't mean they haven't changed their plans. To grapple with the rising cost of fuel, many consumers are opting for trips closer to home. This year, they may be packing up for Epcot instead of Europe.

First, my statistics training raised a flag—50% of Americans plan to buy an HD or flat-panel TV? It sounds a bit sloppy—50% of those polled probably said that, but I think that's about as far as it goes. The travel numbers and behaviors are probably legit though. Despite the high cost of fuel, people are (hopefully) saving more and watching their spending more closely.

And I guess I need to step my game up—I haven't had the 'Well, I guess we can't make a yearly European tour this year' conversation yet. But, I think these little studies do show that there is a segment of the country that is still finding ways to enjoy themselves—many are just finding better ways to do it.

Five Hot Links for the Week!

Summer has officially arrived! Check out some of these summer articles on blogs and finance sites across the net.

1. Get Rich Slowly explores the benefits of vacationing near home. In today's economic challenges, you'd be surprised at what you'll find just around the corner from you.

2. Free Money Finance explains rightly why index funds are still the best mutual funds to have as a central part of your portfolio.

3. Five cent Nickel details what works in improving your gas mileage, and, exploring further-- what doesn't.


4. CNN Money asks if Obama's plan to match the savings of families (up to $500 if you make less than 75K/yr) will work.


5. And if someone asks you for money, should you give it to them? Bankrate says It depends. -