During a down economy, people try to cut costs as much as possible. The middle class is no exception. The Inflation Reduction Act plays a significant role in lowering costs for middle-class families by reducing health care and energy expenses, providing tax credits for electric vehicles, and capping prescription drug costs. They are eliminating luxuries and sometimes necessities. We’ve found 14 costs middle-class families are eliminating to save money.
1. Cable TV
The average cable bill in America is $80, and some go as high as $250, depending on the tiers you have. A middle-class family just can't afford this anymore when you can stream Netflix for $15.99 per month. If you don't mind ads, you can get Netflix for $6.99 per month. The other streaming services are similar in price. You can still have entertainment and save money.
2. Movie Theatre Popcorn
If a middle-class family can afford to take in a matinee, they probably aren't buying popcorn. The average markup for popcorn in the theatre is 80 percent, and sometimes it's sold for a mind-blowing markup of 1,275 percent. Most middle-class families are just watching TV and popping their own corn.
3. Gym Memberships
Unused gym memberships are going by the wayside. You mean to use it, but there's never enough time, so why pay for it? A gym membership in the U.S. averages $58 a month. Even if yours is lower, it's still money that can go toward gas and food.
4. Coffee Shop Coffee
Spending $25 a week on a daily coffee just isn’t feasible for middle-class families. Instead, many people are opting for a go cup from home.
5. Dining Out
Dining out, whether it be fast food or a nice restaurant, is gone from most middle-class families’ budgets. A family of four could blow up to $60 just on fast food and forget about going to a sit-down restaurant, even if it’s not fine dining. By the time you pay the bill and the tip, you could shoot hit $100 or more. Shopping at the grocery store and making dinner has become the new norm.
6. Fancy Weddings
It doesn't matter if she's daddy's little angel; big, expensive, and fancy weddings are disappearing. A quiet little ceremony with a cocktail party afterward is now the norm as middle-class families can't afford or go into debt for a big celebration.
7. Big Houses
Most middle-class families are downsizing. Affordable housing is crucial as it helps support millions of first-time homebuyers and guarantees housing for low-income individuals. Reducing housing costs is a priority for many middle-class families, including initiatives to increase affordable housing supply and provide affordable rent through programs like the Housing Choice Voucher (HCV) Program. The 3,000-square-foot home is gone and replaced by a 1,700-square-foot house or less. That not only eliminates high mortgages but also shaves off high maintenance costs.
8. Junk Food
Grabbing a bag of chips or cookies used to be the norm. But with the high cost of junk food, many middle-class families are skipping the chip and cookie aisles. If they really have a sweet tooth, a lower-cost cake or cookie mix substitutes well.
9. Take Out
The cost of takeout has become outrageous. Besides the food, there are the fees and the tip, which add up quickly. Instead, home-cooked meals are on the agenda.
10. Newest Gadgets and Tech
Many middle-class families that used to buy the latest smartphone or Bluetooth speaker are making do with what they have. If the phone isn't broken, it's not feasible to chase the latest and greatest.
11. Organic Produce
Even though they're more health conscious, many middle-class families are passing on organic. Many have discovered there's no difference in taste and little nutritional value. So why spend the extra dollars ?The organic fad is waning.
12. Concert Tickets
The average concert ticket in 2019 was $125 ,but now it's shot up to $252. Middle-class families need to put food on the table and pay the mortgage., so they don't have the disposable income to go to concerts.
13. Cars
With more people working remotely, having two cars in a family isn’t necessary. Many middle-class families are choosing to sell one of their cars. It cuts down on maintenance and lowers insurance premiums. Retirees, especially, are following this trend.
14. Old Stuff
Many middle-class families are selling their excess belongings. Be it baby clothes or old exercise equipment, people are selling their belongings on eBay or other websites. Some have held garage sales to make it easier and sell more stuff.
Conclusion
Middle-class families are feeling the pinch and are cutting out any excess spending. They’re getting used to not having cable or not going to concerts. Making popcorn at home is less expensive and probably more enjoyable in the long run.
The Affordable Care Act helps reduce health care costs and prescription drug costs for middle-class families. Reducing energy bills and addressing student debt are also crucial for middle-class families.
