The economy is forcing the majority of Americans to postpone financial milestones

The majority of Americans are delaying financial milestones and even suspending certain events and activities due to the current economic situation.

According to a new Bankrate survey, 53% of Americans have had to postpone milestones such as home improvements and renovations and buying or leasing a car.

Meanwhile, 58% of Americans have had to give up certain activities, such as B. Postponing vacations and not having dinner with family or friends.

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Wedding guests hold sparklers

A defocused dance floor with a couple doing their first dance. (iStock / iStock)

The data showed that 15% of respondents had to wait before buying a home, while 10% had to postpone further education. have nine percent pushed into retirement, 7% postponed career advancement and 7% even postponed marriage. In addition, another 7% put off having children.

Stress around the economy has even caused people to procrastinate on small activities, from amusement parks, aquariums, movie theaters to live arts or professional sporting events.

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New car dealer

New cars are on a dealer’s lot. (iStock / iStock)

“Whether inflation, rising interest rates, fears of recession, market volatilityor something like that, concerns about the economy are high,” said Greg McBride, Bankrate’s chief financial analyst.

According to government data, consumer prices rose 7.7% yoy in October and 0.4% from September. Although September’s 8.2% year-on-year increase was the smallest since January, prices remain elevated as the Federal Reserve continues to fight inflation.

Mortgage rates also surpassed 7% for the second time in recent weeks – a high not seen in more than two decades. Mortgage buyer Freddie Mac reported last week that the average of the top 30-year rates rose to 7.08%. A year ago, the average rate was 2.98%.

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Consequently, Sale of new houses plummeted in September as high home prices and lending rates deterred potential homebuyers.

Fifty-seven percent of people say that the economy has had a negative impact on their quality of life in the past year. Only about one in eight people said the impact was positive, according to the survey.

Those who say their life has been negatively impacted are more likely to have postponed a financial milestone than those who say their life has been positively impacted or not impacted at all, according to Bankrate.

Of all generations, Millennials aged 26-41 are the most likely to have delayed at least one milestone.

Family hikes together in the forest

A family hiking through the forest. (iStock / iStock)

The data also showed that 58% of higher-income households earning an annual income of $100,000 or more were more likely to have postponed at least one financial milestone. This compares to 55% of households making between $50,000 and $99,999 that delayed at least one financial milestone and 54% of households making less than $50,000 per year.

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Even though Travel has increased With flights full and hotels sold out, McBride wondered if the surge could have been even greater if so many people hadn’t put off their plans.

“Over 1 in 3 (37%) Americans have given up a vacation in the past year because of the economy,” he said. “This is typically the first discretionary spending cut when households are uncertain about the economic path ahead.”

The Associated Press contributed to this report.

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