Wells Fargo: Americans Are Cutting Back on This Expense the Most Amid Inflation
Written by
Nicole Symon
Edited by
Molly Sullivan
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Inflation has been putting a lot of pressure on Americans’ wallets lately. While the inflation rate fell to about 2.8% as of February 2025, that’s still stubbornly above the Federal Reserve’s target rate of 2%. Prices are high, and people need to adjust their budgets accordingly.
A recent Wells Fargo study explored the areas where Americans are cutting back their spending to deal with higher costs. Traveling tops the list. Here are the top three categories in which Americans are delaying purchases due to financial pressures, plus some money-saving tips.
Traveling
The Wells Fargo 2025 Money Study revealed that 74% of respondents are delaying travel plans to cut back on spending amid inflation. Between transportation, lodging, activities and other costs, traveling can be very expensive. Because it’s also generally nonessential, it’s no surprise so many people are pushing their travel plans while prices are high.
If you’re feeling pressure from inflation but still want to travel, try adjusting your plans to more budget-friendly options. For example, there might be interesting attractions in your area you could visit as part of a day trip to avoid lodging costs. Or, cash in credit card points and other travel rewards to save money.
No matter what your plans are, make sure you compare different travel and lodging options to find the best deal. Being willing to search around can often lead to significant savings.
Home Renovations
After traveling, the next thing people mentioned putting off to save money was home renovations, with 39% of respondents saying they were delaying their plans. Like traveling, home renovations are often a “want” rather than a “need.” Americans may be hoping to push renovations to a later date when their budgets are a bit less tight.
After all, the average home renovation in the U.S. is over $50,000. Prices vary significantly based on where you live and what kinds of renovations you’re doing, but renovations are never cheap. Many people just don’t have that kind of money available in their budgets today as inflation drives the cost of necessities higher.
If you are pursuing home renovations now, pick the most important projects. For example, you might want to renovate your entire first floor, but focus on the bathroom first because it needs the most work. Also, try to DIY the parts of your renovation within your skillset — which might be painting and tiling, for example — to save money.
Buying a Home
Purchasing a home is a major milestone in many people’s lives, but the Wells Fargo study shows that 30% of respondents have put off buying a home due to pressure from inflation.
And it’s understandable. The median sales price of a home in the U.S. is now over $400,000. Plus, mortgage rates are still high at 6.62% for a 30-year fixed-rate mortgage on average. Together, those factors make buying a home too expensive for many Americans at the moment.
If you still want to buy a home soon, explore assistance programs. For example, you may be eligible for first-time homebuyer programs that can help with your down payment and closing costs. Check local, state and national programs so you don’t miss any.
Also, shop around with different mortgage providers to get the best rates. Don’t be afraid to negotiate with them. Compare the rates and terms that providers offer you, then select the offer that will work best with your budget.
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