Revenge of the Spending

Call it a hot vaxx summer, or simply just making up for lost time—Americans across the country are breaking out of their pandemic ruts by shelling out for experiences they’ve been missing over the past 15 months. In our latest Culture Briefing on Post Pandemic Firsts, s&h strategists discussed the excitement around many of these seemingly watershed events - from office parties to family get togethers to bachelorette trips.

But a seemingly concerning financial phenomenon around this rush back to normalcy is “revenge spending.” Despite the fact that many Americans are still out of work, stimulus checks and unemployment benefits have encouraged heightened spending in recent months. 

That’s not to say the revenge spending isn’t warranted. In line with our Element of Culture Unapologetic, Americans are honing in on whatever experiences and purchases bring them happiness after a dumpster-fire of a year. A little spending on new experiences can improve mental health and overall well-being. But hopefully consumers don’t have selective memory. In addition to a little “revenge spending,” the post-pandemic economic boom can be an opportunity to build up savings and retirement funds for future potential crises—especially since in January it was reported only 39 percent of Americans could comfortably cover an unexpected expense of $1,000.

Watch the Full Culture Briefing below:

Watch live Culture Briefings every Tuesday, Wednesday, and Thursday at 12 pm ET on the sparks & honey LinkedIn page.