Are you spending less because of a possible recession?

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Survey results: Worries about a recession

• 1,072 respondents were surveyed from http://www.iwillteachyoutoberich.com about their reactions to news of a recession

• I Will Teach You To Be Rich is a blog on personal finance and entrepreneurship for college students, recent college grads and everyone else– Featured in the New York Times, Wall Street Journal and

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Analysis brought to you by:www.FindABetterBank.com



Snapshot

Who’s worried about a recession?• Women. Forty-one percent of women versus only

26% of men.• Baby boomers. Over 57% of people over 45

compared to only 24% of people under 30.

Who does the worrying hurt?• Restaurants. Eighty-five percent of people worried

about a recession have been eating out less.• Bars, movie theaters, etc. Three-quarters of the

worriers also indicated that they’ve cut back on recreational activities.



0 10 20 30 40 50

Male

Female

Has recent news of a recession made you reduce your spending? (Gender)

(n = 313)

(n = 759)

Percent responding “yes”

41%

26%

“We've pulled back discretionary spending to increase our savings rate. This may allow us to take advantage of value opportunities during the recession.”

“Slowed down on excess.”

“I've consciously looked at how I have been spending. Spending $1.69 for a bottle of water at Whole Foods is not worth it to me anymore!”

“I changed my hair color back to natural to save the expense of maintaining the color.”

“Been more hesitant to bring up my pending review with my boss. He keeps talking about cutting costs, so I’ll stay quiet until things look brighter.”

“Decided to stop buying big-ticket items and travel less for fun for a while”



60%57%

51%

44%

30%

24%24%

0%

10%

20%

30%

40%

50%

60%

70%

18 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 +

Has recent news of a recession made you reduce your spending? (Age)

(n = 293) (n = 392)

Percent responding “yes”

Age

“I'm focused on paying off bills and building up a financial cushion in case of unexpected job loss, etc.”

(n = 150) (n = 101) (n = 65) (n = 30) (n = 40)

“We have slowed down tremendously because the fall of the housing market. My husband has his own business and unless it picks up we are going to be in real financial trouble.”

“I have become more cognizant about moving money into stocks while good opportunities are undervalued. Being in for the long haul, I can afford to take the hit over the next several months until things turn around.”



If so, how much have you reduced your spending by?

$100 + 14%

$50 - $100 28%

Less than $50 58%

Spending per week

“I'm more frequently asking myself, "Do I really need this?" before I buy something or make an extra car trip.”

“I'm trying even harder to get an emergency fund together. Especially since I should be finishing with school soon.”

“I don't go out or buy clothes as much.”

“I've become more focused on paying my consumer debt off completely.”

“Just cutting back on the spontaneous going out; still keeping vacations and planned events.”

“Saving more money now so that once we're firmly in a recession I can put into the market.”

“Shopping for less expensive options for the goods and services I am use to getting: Health insurance, cell service, cable TV etc.”

Base: Respondents who have reduced their spending(n = 326)



What have you reduced your spending on?

27%

36%

76%

85%

0% 20% 40% 60% 80% 100%

Groceries

Driving / Gas

Recreation

Eating out

Base: Respondents who have reduced their spending(n = 326)



Analysis brought to you by FindABetterBank

www.FindABetterBank.com

Are you spending less because of a possible recession?

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