Why Americans Are Splurging Instead of Saving | WSJ Your Money Briefing

With interest rates up and inflation remaining high, consumer spending should be on the decline. However, economists say household spending remains robust.
Wall Street Journal consumer trends reporter Rachel Wolfe joins host J.R. Whalen to discuss why some Americans are choosing trips and concert tickets over homeownership and retirement saving.
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[@minzhu5521]

People are losing long term goals, because they seem to be unachievable.

[@mack-uv6gn]

Seems to be, not actually.

[@jenlovesjesus]

Yes, and because they have forgotten what the pandemic showed us-- that having money in savings is crucial. I will never forget seeing so many Americans completely broke and needing assistance because they lived paycheck-to-paycheck and had zero savings. It''s sad that they didn't learn from the pandemic.

[@gordonallen9095]

Spot on. Why would you try to save long term for a house or other large asset that you have virtually no chance of purchasing due to the goalposts constantly being moved while prices continue to rise, and incomes are stagnant?

[@oeckstei]

I think on a socio/ psychological level people were impacted by COVID so much that they simply re-prioritized their life and not really thinking about the future.

[@user-pe3tt7iu7g]

The future with AI, wars, uncertain economy, global warming, property prices & a pandemic doesn't give people much hope. Bringing kids into this world now seems somewhat immoral if you cannot provide them a family home, financial support, etc. I can see why people aren't having kids and prioritizing themselves.

[@jenlovesjesus]

Actually, the pandemic revealed how many Americans live paycheck-to-paycheck without any savings whatsoever. It's sad that these same people didn't learn and are repeating that behavior.

[@jg2611]

I can relate to this. Do these things while you are able to. Dont be reckless, but do/see/experience the things meaningful to you and within your means.

[@AHR1130]

This girl wants to defend the irrational desicion. Most people are behaving like people in the 1920s just before the great depression.

[@phoreal22]

I'm interested to see how this turns out, however, as a person who is saving, I'd rather not have to increase social welfare to those who choose short term goal over long-term.

[@yashpatel261]

We the rational people always end up carrying individuals who make do not prepare and mess up.

[@pabloc.5186]

Absolutely what im worried about.

[@philolane16]

This is nice. Money briefing about consumer spending on happiness. It's nice to instill financial literacy, smart spending, but it would also be nice not to hold back in spending on something would give people extra dose of happiness, because you also live life. ♥️

[@AHR1130]

History will repeat again. Then the very same people will ask the government to rescue them from their bad economic choices

[@TomNook.]

5:26 Ask old people with excess disposable incomes what their biggest regrets in life are, its that they didn't spend MORE of their money whilst they were young, whilst they were able bodied/had more energy to travel etc.

[@203132]

What's the point of saving if you can't afford a home. Hosts are on point 😂 3:55

[@not4you201]

Agreed. This is the best and realist video I have come across to date. This is awesome thank you both !

[@user-pe3tt7iu7g]

Love the guy who went to Ibiza instead of trying to get into a mortgage and stress himself out for life. Relying on property to build wealth is hard for people that cannot afford it. Some people are better off saving whatever they can to make small investments and put it towards retirement.

[@28704joe]

That $3500 spent for a good time in Ibiza VS investing in the S&P 500 over the next 35 years. Thats what I did in my thirties ( invested) , no regrets.

[@shanarobinson7672]

Facts!!!

[@antilogism]

Nice! That peace of mind is worth the small effort of many years.

[@brooklynusa670]

❤spending on airlines ,hotels ,travel are investing in companies also plus we getting intrinsic value, priceless ❤

[@typhoon320i]

but, but, but.....Ibiza

[@Nb-ll8kp]

Of all reasons, climate change is probably one of the least likely to have anything to do with this topic lol. I believe in climate change but it’s a pretty far stretch to say that. Maybe if they care so much about climate change they shouldn’t be jumping onto an airplane to release a lifetimes worth of emissions

[@johnnyfrank8450]

It’s not that they cared about climate change. They felt they won’t be able to visit certain places in the bucket list coz of climate change destroying those locations.

[@sujesh4684]

It's seems to be just to convince yourself

[@jz4461]

​@@sujesh4684Fully agree

[@pabloc.5186]

Many people see climate change as a world ending issue in the sort to medium term, which is absolutely ridiculous for anyone with an ounce of scientific knowledge. I know people who whole heartedly believe they wont reach their 60s due to climate change, so they wont bother preparing for the future, which is awfully convenient for them, and will cost them a lot, becaude the future will come. Its another form of stupidity, and self brainwash so they can be impulsive without remorse. Then theyll come crying saying the economy did them dirty.

[@rileyrfitzpatrick]

"It's not that people are being reckless, it's that they are intentionally prioritizing things that make them happy" These aren't mutually exclusive... And yes, people are being reckless. The average consumer does NOT understand the opportunity cost of their spending, or at least the extent of it. As others have pointed out, people have lost hope for achieving the longer term goals that used to serve as the motive to save/invest. Unfortunately, the intention behind your spending doesn't change the math, and many Americans are setting themselves up for a bleak and challenging future.

[@johnathin0061892]

It is absolutely reckless. Being able to achieve long term goals is irrelevant to be financially responsible because, for most people, their near term basic survival is now on the line. Home ownership is nice but not what people will care about if (more like when) the price of food and gas quadruples.

[@GlobalPenguin2012]

Americans have a culture of spend now, think and worry later. This is the complete opposite of the Japanese culture.

[@AustinMathias]

We are not guaranteed tomorrow and people are realizing that with all the chaos that is going on in the world. Enjoy every single day with your loved ones because life is extremely short.

[@yashpatel261]

That is dumb. Life is extremely long.

[@MichaelAnthonyRuns]

Absolute terrible mindset to have. Good luck working when you’re 70,80,90

[@chrissharkey9644]

This is why many Americans don’t have retirement savings!

[@douglaswood3083]

The chickens always come home to roost! Let's see if this new spending mentality is not later regretted...

[@Carlos12387]

Hit 200k today. I'm really grateful for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in June 2022

[@pamalapaul9545]

Congratulations 🎉. You're really doing well for yourself, my financial life is in a mess. Any great tips would really go a long way in shaping my life. I want to buy my own house, that's really a big flex..

[@Melodyjackson1]

I would really love to know how much work you did put in to get to this stage

[@Carlos12387]

After I came across investment platform of Mrs Brisa Richardson my financial life has totally changed. I'm not bothered about the market fluctuations.

[@kanesmith4085]

Wow😊l know her and I have also been trading with her, she's such an amazing woman with good skills keeps me happy all week knowing I earn 15thousand extra income trading with her.

[@mariohugo6219]

I stumbled upon one of her clients testimonies and decided to try her out....I'm expecting my third cashout in 2days

[@MylesShank]

I take it many of these people don’t fully understand compound interest.

[@antilogism]

They ditch class those days to party! (oops---I resemble that remark)

[@bobbybannerjee5156]

Humans have never prioritised long term needs. I fail to see what's new.

[@mrjuvy49]

To end up in the top 20%, they know how to do it- DISCIPLINE.

[@pabloc.5186]

Whats new is that it is worsening, quickly

[@alexroberto6353]

I went to Lahaina in 2018. Crazy how a whole town can be wiped away.

[@thecapone45]

Politicians and everyday people: Americans are suffering! We can’t afford to buy anything! Also Americans: *splurge on fast food, restaurants, Starbucks, shopping, etc.*

[@Blueline69311]

Yeah the YOLO stuff is great, just don’t come to the government asking for a bailout five years from now.

[@pabloc.5186]

Thats whats gonna happen and you know it. Theyll cry that the economy screwed them. It sucks for the people that are actually making sacrifices for a better future.

[@PS-ej2xn]

Could you please use better AI for the female voice. Much appreciated.

[@nicobryant-aguilar7905]

It sounds like a lot of people are not thinking about the power of compounding.

[@Avsfan23]

Cuz they're impatient, and can't handle the thought of delayed gratification.

[@JOESUBA122]

I don’t splurge anymore I am 53 and I have a lot of ground to make up for

[@igglybiggly6951]

" It's the end of the world as we know it and I feel fine"... REM

[@nacarreira777]

Perfect sentiment to help explain why few of us are planning for the future, or having children....there may not be a future you want to be around for.

[@igglybiggly6951]

@@nacarreira777 I'm a GenXr with a couple early 20s kids and I worry what world they have

[@Pants3]

Everyone is competing for your money

[@mrjuvy49]

So you pay yourself first, then pay the rest, see ya in Jamaica or Mexico on the beach.

[@keegannunley5444]

For the love of god! A journalist for major media actually did their job and actually asked real people on the street why. Others just carry on and plant motives like people don't want to work or save anymore, or Yolo and FOMO like the idiot host said because he obviously wasn't listening and just waiting to make the next talking point. Owning a home and having at least a modest but nice used car without a lease or note and time for a vacation were all major pillars of work motivation just behind no 1 supporting family. It's important to still save, and have a financial direction for the future, but you can't ignore this fact, as the economy takes these things out of the hands of average people you can't blame them for questioning what exactly they will get for long-term savings in recent years.

[@heysaras]

Your argument would be stronger if you didn’t name-call the host an idiot.

[@itsrelativ3967]

If American pop culture and product advertising wasn't on every billboard and social media we'd never feel the pressure to splurge.

[@jamesfreeman7954]

They'll waste all their money and then ask daddy government for help. If daddy goverment won't move these same people who have no impulse control wil begin stealing from those who do.

[@atomparish]

I really hope they have interns type out the text for these videos and have AI read it in these voices. That is literally what it sounds like.

[@antilogism]

It's real people but very agressive post-processing and data compression gives it the robotic edge.

[@brooklynusa670]

😂interest on our savings are taxed no incentive to save

[@joe-nt9qg]

How old is, 18,20 lot of life experience

[@joe-nt9qg]

While living with mommy.

[@teebone2157]

Take away credit cards and watch the economy crash

[@SorminaESar]

Many peoples arround the world will avoid to save the money in the bank, cause it'll make moment for stealing with money tech, especially m-Banking. But I don't think there're space of saving just spending😊

[@SorminaESar]

Good morning🙏

[@acamiln8354]

You did not succese, poeple spent very small amnount during ....how to say during these days...:)

[@MammieBarry]

N😅😊

[@gipsydanger5020]

Who TF is splurging, despite the super rich? Clowns