Inflation has made household budgeting less about finding one big solution and more about assembling several small defenses. Recent PYMNTS Intelligence research shows consumers cutting selected wants without abandoning every discretionary purchase, switching to store brands, checking prices from the aisle and steering more spending toward merchants associated with value. Some are also adding income, negotiating bills and using payment tools to smooth cash flow.
The clearest dividing line is behavioral. Consumers who use a broader budgeting toolkit report better results than those relying mainly on spending cuts. None of these tactics neutralizes higher prices. Together, however, they show how households are preserving control, protecting essential spending and creating more room inside constrained budgets.
Household Budgeting Takes Multiple Forms
Nonessentials Get Trimmed
53%
Among paycheck-to-paycheck consumers struggling to pay bills, 53% spent less on nonessentials such as dining out, entertainment and travel during the past year. Just 23% increased that spending. Consumers are selectively cutting this segment of their household budgets to protect essential obligations.
Private Labels Prevail
49%
Nearly half of Labor Economy consumers bought store-brand or private-label products in the past year. Store brands ranked ahead of coupons and promotional codes at 49%, price comparisons at 41% and cashback or rewards apps at 31%.
Phones Find Savings
36%
Among consumers who used mobile assistance while shopping in-store, 36% did so to find a product’s location, while 35% searched for coupons and discounts. The smartphone is serving as an in-aisle affordability tool to support household budgeting.
Value Retailers Win
56%
Among online grocery shoppers experiencing high financial stress, 56% made their most recent purchase from Walmart, compared with 50% of those with low financial stress. In-store, the difference widened to 37% for those with high financial stress versus 26% for those with low financial stress. Consumers under pressure are actively directing spending toward retailers associated with predictable value.
Proactive Moves Outperform
35%
Thirty-five percent of proactive consumers rated their coping strategies as very or extremely effective, compared with 19% of reactive consumers and 27% of balanced consumers. Proactive consumers combine tactics such as adding income, negotiating bills and managing payment timing. The finding suggests that a broader household budgeting toolkit delivers better results than retrenchment alone, although relief remains limited.
Methodology
This Data Book is based on several reports from PYMNTS Intelligence, including the PYMNTS Consumer Expectations Index, the Wage to Wallet™ Index, the Global Digital Shopping Index, How People Shop and Pay and the Generational Pulse Report.