An economic downturn can get pretty rough on middle-class families. Policies like the Affordable Care Act and the Inflation Reduction Act aim to alleviate some of these pressures by expanding access to affordable healthcare and lowering everyday costs. That means families must tighten their belts and eliminate some items from their budget, so families are forced to look at their housing costs, ways to reduce energy bills, and other ways to save within the means of their household incomes. Here are 14 costs middle-class families are eliminating to save money.
1. Cable TV
The trend to cut the cord has been going on for a while, but bad economic times have accelerated it. Streaming services offer a cheaper alternative to shows and movies people want to watch. Cable not only costs more but has dozens of channels that most people aren't interested in watching.
2. Entertainment
Concert tickets have increased in costs, and middle-class families are skipping this form of entertainment. Instead, fans are opting to watch local shows and streaming shows. This means working families are able to put those saved costs towards other needed items such as utility bills or prescription drug costs.
3. Gym Memberships
Even though healthy lifestyles are becoming popular, having a gym membership that is seldom used is a luxury that many middle-class families are cutting. Some families have taken to biking or just walking around the neighborhood.
4. Movie Theaters
Movie tickets are expensive, but many people still want to go to them. Instead, they've given up that tup of popcorn. High-priced movie popcorn is just out of reach. Many families don't even bother going to the movies but would rather have movie night at home with their own popcorn.
5. Organic Groceries
Although many health-conscious consumers have purchased organic food in the past, many are questioning the health benefits versus the cost. Consumers find that non-organic produce and other products are just as nutritious and much less expensive.
6. Subscription Meal Boxes
Although having your dinner show up already prepped with your favorite food is convenient, these subscription boxes are a luxury many can’t afford. Instead, middle-class families are back to choosing their favorite foods from the grocery store.
7. Specialty Coffee
When times are good, people don't think twice about buying a five-dollar cup of coffee at a coffee shop. But five dollars a day adds up to the price of a dinner and just needs to be skipped. Instead, making coffee at home and using a go cup is far more economical.
8. New Phone Releases
The latest and greatest just isn’t in the budget. People are making do with the phone they have until the battery dies or the screen is cracked beyond repair. A $1,000 just can’t go into a phone anymore.
9. College Textbooks
Renting textbooks has become the newest rage. Owning a textbook that you can only use for one class isn't feasible for many families already paying exorbitant tuition.
10. Dining Out
Even the price of fast food for kids has become too high. And the price of a sit-down dinner is out of this world. Besides just paying for dinner, there's also the needed tip. Most middle-class families are opting for home-cooked meals.
11. Lavish Weddings
The average wedding costs tens of thousands of dollars. Most families or couples are now choosing a simple wedding or elopement. They don't want to start married life in debt and families with multiple children just can't afford it.
12. Large Homes
Gone are the "playrooms" for children. And not every child gets their own bedroom or bath all the time. Middle-class parents are opting for more reasonably priced smaller homes. Some are forgoing the American dream altogether and renting which helps in lowering costs and provides more affordable housing for families considered middle class.
13. Latest Fashion Trends
Wearing the latest fashion isn't feasible for middle-class families. And those who do, are choosing to buy from cheap online stores like Temu and Shein. Families can no longer spend money on expensive designer items.
14. Health Insurance
Middle-class families are looking for alternatives to health insurance plans due to the soaring costs of health care and health care costs. They are also seeking ways to lower health insurance premiums to make coverage more affordable. Some younger families are opting for high-deductible plans that cost less. Others are buying into health-sharing plans or direct primary care memberships.
Conclusion
Many middle-class households are strapped for cash, facing economic challenges as middle class incomes grow slowly compared to other groups. Economic policies, such as the middle class initiative, aim to support middle income families in managing these challenges.
With prices going up and incomes flat, items that used to be on the shopping list have disappeared. According to a 2018 report from the Pew Research Center, the income ranges defining the middle class have shifted significantly over a generation. Cutting corners is the name of the game.
