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.

Your Money Briefing
WSJ's personal-finance podcast features the news that affects your money and what you do with it, breaking down complicated money questions from spending and saving to investing and taxes.

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[minzhu]

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

[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.

[jg]

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.

[AHR]

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

[phoreal]

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.

[Nb-llkp]

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

[philolane]

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. ♥️

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

[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.

[pettiug]

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.

[joe]

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.

[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.

[chrissharkey]

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

[GlobalPenguin]

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

[douglaswood]

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

[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.

[MylesShank]

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

[Carlos]

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

[bobbybannerjee]

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

[PS-ejxn]

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