Yahoo Finance 7 Everyday Splurges the Middle Class Can No Longer Afford
Inflation has led to increased prices across many categories. Even though inflation hit its highest point in June of 2022, prices have steadily risen this year. Data from Statista shows that in March 2024, prices were 3.5% higher than prices from March 2023.
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Because of this, many consumers — particularly the middle class — are settling for the cheaper option of many necessary items. When it comes to common splurges, such as designer clothing or name-brand groceries, many Americans are setting stricter budgets or opting out of these indulgences entirely.
Here are the everyday splurges that the middle class can no longer afford.
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Concerts and Live Events
Ticket prices have skyrocketed in recent years. Nosebleed seats now cost hundreds of dollars, and decent seats can go into the thousands — and this is before the added fees. Because of these hefty prices, concerts and other live events have now become unaffordable for middle-class consumers.
“The rising costs of tickets, along with added fees and travel expenses, have made it difficult for the middle class to enjoy these experiences as frequently as before,” said Ned Priestly, CEO of My-Quick Loan. “Contributing factors include increased production costs, higher artist fees and inflation.”
If consumers still wish to enjoy live entertainment but not hurt their budget, cheaper alternatives are out there.
“Look for local or smaller-scale events, which tend to be more affordable,” Priestly said. “Many communities offer free or low-cost entertainment options, especially during the summer.”
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Coffee
In 2010, the average price for a cup of coffee from a coffee shop was $4. In 2023, it was around $6. It can be more, depending on preferred add-ins, size or non-dairy milk options that usually have an upcharge. The price of coffee continues to increase for several reasons, particularly climate change, extreme weather conditions in Brazil and inflation.
With the increasing price of coffee, this everyday luxury has now become too expensive for middle-class coffee drinkers. To save money on this indulgence, one may consider visiting their favorite coffee shop less often, ordering less expensive café items or making their coffee at home.
Name-Brand Food Items
Grocery items still see the effects of inflation, and shopping for name-brand food items has now become a luxury for the middle class.
“The costs of these products have risen due to supply chain disruptions, increased production costs and inflation,” Priestly said. “Many middle-class families are now opting for store brands or generic alternatives to manage their budgets more effectively.”
Switching to store-brand grocery items, buying in bulk or shopping at discount grocery stores can reduce your monthly grocery bill. Utilizing store sales and coupons can also help middle-class shoppers save on groceries.
“Aldi and Trader Joe’s have reputations for quality items at lower prices, especially fresh fruit and produce,” said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance. “If you’re an Amazon Prime member, Whole Foods often has a lot of sales for Prime members that you can take advantage of. Sam’s Club and Costco are also good options for bulk buying access.”
When it comes to store-brand items, a cheaper price doesn’t always mean cheaper quality.
“Anything that has an excellent generic swap is a good choice,” Rasure said. “This isn’t true for every product or grocery item, but it can often work. Store brands taste good or perform well frequently. If there are items upon which you won’t compromise, wait for a sale or coupon to buy the name-brand.”
Watching Movies
Whether it’s streaming movies at home or going to a movie theater, watching movies has now become a costly pastime. An adult movie ticket can cost anywhere from $9.10 to $15.83, depending on what state you live in, and since 2001, the average cost of a movie ticket has steadily increased. These prices have risen for several reasons, including inflation, the COVID-19 pandemic and the rise in popularity of movie streaming services.
Streaming services have also risen in price. For instance, Netflix cost $8 a month in 2011 and rose to $11.99 in 2023. It announced this year that it expects this cost to increase.
If the middle class wants to save money on streaming movies, many services offer discounted bundles or cheaper monthly subscriptions that come with ads.
Luxury Clothing
The price of designer clothing and accessories has also seen a significant increase. If middle-class shoppers want good-quality clothing that will last, this comes with a heavy price tag.
“Factors such as rising raw material costs, labor expenses and brand markups contribute to these higher prices,” Priestly said. “As a result, many are turning to discount retailers, second-hand shops or online resale platforms to find fashionable items at a fraction of the cost.”
Dining Out
Many middle-class families have found that going out to eat once a week is now a luxury they can no longer afford. The increased cost of dining at a restaurant — at least 5.1%, according to the January consumer price index data — has made this everyday activity an expensive indulgence.
Leisure and Travel
Whether it’s a yearly summer vacation or a weekend getaway, the cost of travel has become nearly out of reach for the middle class.
“Factors like increased fuel prices, higher accommodation rates and overall inflation have made it more challenging for middle-class families to afford spontaneous vacations or even regular leisure activities,” Priestly said.
Many middle-class people face pressure to live a certain lifestyle despite the rising costs. Thus, many in the middle class are resorting to personal loans and credit to pay for travel and leisure expenses that were once affordable to them.
“Consider staycations or day trips to nearby attractions instead of more expensive travel options,” Priestly said. “Taking advantage of local parks, museums and community events can provide enjoyable and low-cost leisure opportunities.”
Additionally, if you wish to take a vacation but want to limit your spending, staying with family or friends, splitting the cost among those you vacation with and taking advantage of off-season travel deals can help save money.
“Try not to feel obligated to spend a small fortune on classic summer vacation spots like Disney, especially with little ones who won’t remember the experience,” Rasure said. “Little ones are easy to please and often enjoy a mini-staycation at a local hotel with a good pool.”
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This article originally appeared on GOBankingRates.com: 7 Everyday Splurges the Middle Class Can No Longer Afford
