Americans reveal spending cutbacks

06.24.09
By Sarah Beldo

As retailers, restaurants and others businesses across the country can attest, Americans have changed their spending patterns.

Whether they are cutting back in order to pay off credit card debt, boost their long-term savings, improve their credit score or create an emergency fund, the average consumer has given up some of their previous habits.

According to a Huntington National Bank survey of more than 1,000 people, approximately two-thirds (77 percent) said they are no longer eating out as frequently as they used to in an effort to control spending.

Some respondents said that when they do go out, they split an entrée between two people to save cash. Many others reported they are grocery shopping and cooking at home instead of going to restaurants.

The survey also indicates that 72 percent of respondents have limited their clothing purchases to save money and nearly half (49 percent) have stopped going out to the movies.

But there are some areas in which Americans just can't imagine cutting back. For many, this area was food, while 13 percent said they would not curb spending on medical needs and 10 percent will definitely continue to pay for home entertainment.

Mary Navarro, retail and business banking director at Huntington, said the poll reveals the various methods consumers are using to increase their savings during a financially tumultuous period.

"Everyone should establish a rainy-day fund worth six months of salary," she explained. "Unfortunately, during the recession many families have learned the importance of having such a fund."

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Consumers are saving more during the recession.