Americans are cutting back, looking for money advice

SIOUX FALLS, S.D. (KELO) – A recent study released by Wells Fargo has found that 76% of Americans are cutting back on spending which is up from 67% in 2024. The study also found 57% of Midwesterners are delaying life plans this year like travel, buying a home, getting married or retiring.

KELOLAND News spoke to some shoppers at Sunshine Foods about the areas they are cutting back.

“Trying not to eat out as much just because, you know, even if things are expensive at the grocery store it’s still cheaper than eating out,” shopper Amanda Carlson said.

“Buying clothes – I can wear what I have. I might even have things that I bought and have never worn,” shopper Helen O’Neil said.

Wells Fargo found that 86% of Midwesterners want to be more intentional and thoughtful with their money.

Concern, intense rhetoric accompany HB 1239 in Pierre

“Interestingly, those in their 20s, 30s and 40s didn’t just indicate they’re cutting back on spending, however, they actually indicated they’re re-allocating their dollars to saving and investing,” Emily Irwin, Head of Advice Center for Wells Fargo Bank, said.

Irwin says some people are even seeking more financial advice right now, however, there are some things Americans are tired of hearing.

“So I think the big headline is we all want to stop hearing that we shouldn’t buy a cup of coffee,” Irwin said. “It seems demeaning, it doesn’t make us feel good and, to be quite frank, it might be part of our every day habit.”

Irwin says people don’t like feeling judged when seeking financial advice, so we asked what her advice for managing money is.

“Get really specific on what you want to achieve with your money,” Irwin said. “This is a way for us to determine– are we pulling the right levers, are we making sure that we’re either investing in a way that we’re not taking on too much risk or maybe not enough risk to achieve our goal, do we have enough emergency savings in place that if something catastrophic or really positive to happen we have a nest egg.”

When it comes to saving, Irwin says it’s important to identify what you’re saving for, the timeframe and the dollar amount.

“It really does become unsustainable if it’s just an altruistic or academic exercise. It’s much easier from a sustainability standpoint in order to achieve those goals if you say, ‘I’m saving for retirement at this age,’ ‘I’m saving (if you’re a teenager) for a laptop by this grade that I’m entering in to,’ ‘I’m saving for my first vehicle,'” Irwin said. “Whatever it is, identify it, name it.”

Irwin says you should also be receptive to the fact that we can’t control everything.

“The economy will be volatile. It will have uncertainty built into it,” Irwin said. “And that’s okay so long as we understand our plan that’s put into place and we understand what happens during those periods of volatility so we can become comfortable with whatever risk we’re assuming in our spending, our saving and our investment.”