As the holiday shopping season gets into full gear, California consumers are intensively searching for deals.<\/p>\n
I mean, they\u2019re literally aggressively searching \u2013 online.<\/p>\n
My trusted spreadsheet analyzed Californians\u2019 online search habits over the past eight years through October, using Google Trends to identify the kinds of budget-conscious information they sought.<\/p>\n
I developed the Stretched Wallet Index by analyzing search volumes for 12 phrases related to financial struggles. This index shows the combined fluctuations in searches for those budget-related terms.<\/p>\n
California\u2019s interest in thriftiness increased by 12% over the past year, according to the index.\u00a0Now, online searches aren\u2019t perfect indicators of consumer psyche, but this jump seems consistent with various reports of rising financial worries.<\/p>\n
The recent uptick in these searches followed inflation reaching a four-decade high in 2020-21. The index averaged 4% annual growth from 2021 through 2024 as rising prices smacked household budgets.<\/p>\n
This upswing runs counter to a drop in thriftiness searches when pandemic-linked shortages made availability, not price, a major consumer need. The Stretched Wallet Index averaged a 2% annual decline in 2018-21.<\/p>\n
And it\u2019s not just the Golden State. The national version of this index is up 11% over the past year, after a 5% average increase over the previous three years and a 3%-a-year dip in 2018-21.<\/p>\n
Not all 12 search terms comprising the index moved in the same direction. Note their past year\u2019s swings, ranked from the largest increases to the biggest dips, and what the moves might mean about Californians trying to make ends meet.<\/p>\n
What\u2019s hot<\/p>\n
The Stretched Wallet Index\u2019s surge was driven by jumps in searches for these eight items, which are part of this thriftiness measurement \u2026<\/p>\n
\u201cPrice cut\u201d \u2013\u00a0Searches for this topic rose 30% in the past year vs. 28% nationally. It\u2019s the main target for any bargain hunter.<\/p>\n
\u201cFamily budget\u201d \u2013\u00a0Searches rose 26% in a year vs. 21% nationally. When bills pile up, keeping track of family finances becomes a necessity.<\/p>\n
\u201cStore brands\u201d \u2013\u00a0Searches rose 25% in a year, same as U.S. gain. One way to save on groceries is to buy the merchant\u2019s own branded products.<\/p>\n
\u201cMeals at home\u201d \u2013\u00a0Searches rose 24% in a year vs. 10% nationally. Restaurants\u2019 soaring menu prices are prompting people to rethink where they dine.<\/p>\n
\u201cCredit card rates\u201d \u2013\u00a0Searches rose 11% in a year vs. 16% nationally. This parallels the continuing growth in balances on these typically expensive borrowings.<\/p>\n
\u201cOn sale\u201d \u2013\u00a0Searches rose 10% in a year, same as the national increase. The need for discounts is growing.<\/p>\n
\u201cFood bank\u201d \u2013\u00a0Searches rose 5% in a year but off 1% nationally. A sign that more folks are in dire straits.<\/p>\n
\u201cBOGO\u201d \u2013\u00a0That\u2019s buy-one-get-one. Searches rose 4% over the past year vs. 9% nationally. Merchants have oversued \u2013 if not abused \u2013 this discount phrase with \u201cdeals\u201d that don\u2019t make the \u201cget one\u201d free.<\/p>\n
What\u2019s not<\/p>\n
The online deal hunt evolves, as shown by four terms in the index whose California searches are on the decline \u2026<\/p>\n
\u201cThrift store\u201d \u2013 Searches down 6% in a year vs. up 1% nationally. Since second-hand shops are so ubiquitous, folks may not have to search for them. That itself would be a worrisome trend.<\/p>\n
\u201cCoupons\u201d \u2013\u00a0Searches down 11% in a year vs. 9% dip nationally. That\u2019s how your grandparents saved money.<\/p>\n
\u201cFree stuff\u201d \u2013\u00a0Searches down 11% in a year vs. 8% dip nationally. Folks may have a bad impression of \u201cfree\u201d and prefer discounted goods they\u2019d pay for.<\/p>\n
\u201cDollar store\u201d \u2013\u00a0Searches down 13% in a year vs. flat across the U.S. A mainstay in much of the nation, the novelty in the Golden State may have dimmed. But not the need.<\/p>\n