2024 American Spending Habits: Nearly 75% Have an Overspending Problem

Spending Regrets | Reckless Overspending Habits | Spending and Relationships | Shame and Spending Habits | Mismatched Views of Spending | Essential Spending and Debt | Deserving of Spending | Lifestyle Changes for More Cash | Generational Spending Differences | Men vs. Women Spending Habits | Buying Happiness | Impulse Spending Breakdown | Paying for Convenience | Home Spending Regrets | Room for Improvement 

Despite frequent and ominous predictions of a recession from economists and pundits, the U.S. economy shocked many with another year of relatively strong growth in 2023. It’s a pleasant surprise that the Commerce Department credits to plenty of spending by everyday people.

Consumer spending, as measured by the federal government’s personal consumption expenditures metric, continued to grow in late 2023 and early 2024, even as inflation began to moderate. Retail sales, not including spending on automobiles and gas, rose 4.9% in 2023.

Although Americans' spending props up the economy, most describe a life of impulse buying, missed bills, and busted budgets. Around three-quarters of Americans (74%) surveyed by Clever Real Estate have an overspending problem, while more than half (55%) admit to spending recklessly. 

Significant numbers of people feel fear, embarrassment, shame, and other negative emotions when they think or talk about their finances, while almost half (45%) reveal they’ve cried over their spending habits.  

Americans, however, don’t blame their personal spending habits for any financial distress. A majority of respondents say their spending habits wouldn’t be a problem if the economy were better (56%) or prices weren’t so high (61%). 

Nevertheless, they’d consider a wide variety of options for more cash, from moving to a cheaper area to changing careers or posting content on OnlyFans. 

To find out more, Clever Real Estate surveyed 1,099 American adults about how and why people spend their money, as well as how they feel about their financial habits.

Nearly Three-Quarters of Americans Have Regrets About Their Spending

When it comes to regrets, Americans certainly have a few, but by no means too few, to mention. An overwhelming 71% express regrets about their spending habits. The most common are spending money they should be saving (32%), spending too much (22%), and making too many impulse purchases (18%).

Other top spending regrets include:

• Failing to track their spending (18%)
• Putting too much on their credit card (17%)
• Spend more than they earn (15%)
• Struggling to prioritize their spending (15%)
• Having no money saved because of their spending habits (14%)
• Making purchases without comparing prices (14%)
• Going into debt because of their purchases (12%)
• Spending as a coping mechanism (11%)

More Than Half of Americans Are Reckless Spenders

A majority of Americans (55%) admit they spend recklessly, while nearly 3  in 4 Americans (74%) own up to an overspending problem — especially on groceries (52%), online shopping (42%), and clothing (39%). Respondents also overspend on all sorts of other everyday and specialty categories:

• Dining out (37%)
• Their children (35%)
• Entertainment, such as music streaming, movie streaming, and sports (29%)
• Beauty products (27%)
• Home upkeep and decorating (26%)
• Their pets (26%)

A majority of respondents in every age group agreed they have an overspending problem, but younger generations struggle to control their spending the most. Only 56% of boomers identified an overspending problem in at least one category, compared to 86% of millennials and 87% of Gen Zers.

Overspending isn’t just an occasional problem, either. Nearly 2 in 5 Americans (39%) exceed their budget every month, while around 1 in 6 (15%) do it on a weekly basis. In addition, 78% of Americans make purchases they immediately regret.

As a result, roughly a quarter of respondents (24%) rack up more than $5,000 per month in spending, while about 1 in 7 (14%) spend more than $10,000 monthly. And that’s just the spending they know about. Almost 1 in 5 (18%) don’t track their spending at all.

Nearly 8 in 10 Americans Spend Money on Things They Don’t Use

Although some might justify their freewheeling spending habits by arguing they need everything they buy, that’s not the case for most. About 79% of Americans confess to purchasing an item they never end up using. A quarter (25%) report doing so at least monthly. 

There’s a stark generational split on this highly wasteful habit. While 19% of Gen Zers and 15% of millennials report purchasing an item they’ll never use at least once a week, none of the boomer respondents reported doing the same.

Meanwhile, the growing popularity of subscription services has made it easier than ever to enjoy popular TV shows, get food delivered, and refresh your wardrobe. But they also make it easier to spend significant amounts of money without even realizing it. 

About 40% of Americans have a subscription to a service they rarely use, including 60% of millennials (60%) and 51% of Gen Zers. About 1 in 5 boomers (19%) also fall into this spending trap. This finding comes as nearly 1 in 3 Americans (29%) identify entertainment as an area where they overspend. 

Even as they overspend on unnecessary items, many convince themselves they’re making the right decision with value in mind. Nearly half of Americans (47%) will buy things simply because they’re on sale, regardless of whether they need them. 

1 in 3 Americans Say Their Lifestyle Costs More Than They Earn

Americans enjoy their big-spending lifestyles, but a significant number know they can’t continue down this path forever. More than half of Gen Zers (53%) and more than 2 in 5 millennials (43%) say their lifestyle costs more than they earn, compared to just 13% of boomers. Overall, a full third of Americans (33%) feel this way.

And this awareness isn’t all hindsight. One in 3 Americans (33%) admit they’ve made a purchase in the past year that they knew they couldn’t afford when they bought it. These deliberate budget busters are more common among younger Americans, with 1 in 5 Gen Zers (21%) and 1 in 6 millennials (16%) revealing they do this once a week or more. Years of financial experience may keep boomers from making similar mistakes, with more than half (58%) saying they've never knowingly made a purchase they couldn't afford. 

Even if they can technically afford them, nearly 4 in 10 respondents (38%) say they’re often aware their purchases are reckless before they swipe their card or hand over their cash. 

This all plays out against the backdrop of relatively high debt, with 70% of Americans reporting at least some non-mortgage debt. Almost 1 in 3 (32%) have at least $10,000 worth of debt. In addition, nearly half of Americans (46%) admit they've missed paying a bill at some point because of nonessential spending.

Spending Is a Sore Subject for Nearly a Third of Americans' Relationships

As critical as financial agreement is for a healthy relationship, almost a third of Americans (32%) avoid discussing finances with those closest to them because of the tension it causes. Even worse, 1 in 6 Americans (16%) never have financial discussions with their partner or family. Boomers are 3.4x more likely than millennials to fall into this group (27% vs. 8%).

Overall, 1 in 5 Americans (21%) would be embarrassed to disclose their financial habits to a partner, with Gen Zers (27%) and millennials (25%) 2x more likely than boomers (12%) to be among this group. 

Americans who are embarrassed about their finances may be more inclined to withhold information. More than 1 in 4 respondents (28%) admit to keeping financial secrets from their partners. The same percentage (28%) say they've hidden a purchase from a spouse or partner, while about 1 in 7 (14%) have opened a secret bank account or credit card. 

It’s not just their own spending that causes problems for Americans in relationships. Many aren’t thrilled about their partners’ spending habits either. One in 12 (8%) say they regret letting their partner talk them into purchases they don’t like. Another 15% say they’re afraid to bring up the way their partner spends money.

Then again, money may be the reason some of these relationships exist in the first place. More than a quarter of Americans (26%) have considered or would consider marrying someone for their money. This includes more than a third of the typically marriage-aged Gen Zers (36%) and millennials (36%).

Fears, Tears, and Shame: Alarmingly Common Emotions in Americans’ Spending

Americans don’t need a partner to feel bad about their money habits. They can do that pretty well on their own, too. Overall, nearly a third (31%) say they’re ashamed of their financial state, with an even higher percentage (36%) admitting they feel guilty about their spending. 

Nearly half (48%) of Americans avoid thinking about their finances because of the stress it causes — a counterproductive habit that’s particularly widespread among millennials (62%) and Gen Z (52%). In addition, more than a quarter of respondents (28%) say they’re afraid to check their finances because they’ll realize how much they’re spending.

For those with the courage to look at their accounts, the results are often grim. Almost half of Americans (45%) have cried over their spending habits, including more than 1 in 8 (13%) who cry every week. Meanwhile, a troubling 1 in 6 (16%) say their spending has ruined their lives. 

Time doesn’t heal all financial wounds. Nearly one-third (31%) say they have a specific reckless purchase that still haunts them. That number rises to 43% for millennials (43%) and 37% for Gen Z.

Few Americans Consider Their Spending Reckless

In spite of all of this, people don’t typically blame themselves for their spending or financial problems. More than half of Americans (56%) say their spending habits wouldn’t be a problem if the economy were better, while more than 61% say the same would be true if prices weren’t so high (61%). Millennials (40%) and Gen Z (36%) are almost 2x more likely than boomers (21%) to believe their financial struggles aren’t their fault.

Just over 1 in 4 Americans (27%) would concede they live beyond their means, and only 35% would call themselves overspenders. 

Only about a quarter of respondents (27%) view their spending habits as problematic. Meanwhile, 42% of  Americans describe their spending habits as careful (42%) or responsible (41%.) Almost one-third (30%) use terms such as controlled or balanced. 

On the opposite end of the spectrum, just 23% describe their spending as impulsive, and fewer than 1 in 5 (19%) call it unpredictable. Only 13% label their spending excessive, and just 8% say it’s frivolous.

There’s also a strong sense of superiority among many American spenders — whether or not it’s earned. Even as 92% claim they’re trying to improve their spending habits, just 15% believe they’re worse about spending than the typical person. 

Still, the gap between what Americans say and do is a profound one. About 89% wish they saved more money, but 40% admit that if they lucked into an unexpected $10,000 windfall, they wouldn’t put any in savings. 

More than Two-Thirds of Americans’ Income Goes Toward Essentials or Debt Payments

Americans have little room for reckless spending after years of high inflation and rising housing costs. On average, respondents spend 52% of their income on essential spending, such as housing, food, and bills. This rises to a full two-thirds of income (66%) when non-mortgage debt payments are included. 

This is somewhat out of step with the split suggested by many personal finance experts, who often recommend spending 50% of income on “needs,” 30% on “wants,” and dedicating the remaining 20% to savings and investments. 

However, Clever research finds the typical American ends up with just over a third of their total income available for all saving, investing, and "fun" nonessential spending combined. Based on the median personal income of $40,480, that’s barely $270 per week before taxes to split between enjoying the present and preparing for the future.

More than 8 in 10 Americans Think They Deserve Unnecessary Treats

With surprisingly positive views of their own financial discipline, many Americans think they’ve earned a little irresponsibility. About 84% say they justify unnecessary purchases with phrases such as “I deserve it” or “I’ll treat myself.” More than 1 in 6 (17%) seem to feel particularly deserving and justify spending in this way at least once per week. These “weekly treaters” are almost exclusively Gen Zers (34%) and millennials (28%), with practically no boomers (2%). 

Beyond this common excuse, the ways Americans justify their unnecessary spending are wide-ranging:

• Almost half of Americans (44%) confess to buying things to cope with stress or reward themselves. Nearly a third (29%) go so far as to call it “doom spending.”
• About 47% justify unnecessary spending by saying they got a good deal. 
• Although affordable generic items can often be very similar, almost half (47%) still prefer the usually pricier name-brand versions of products.

Nearly a third of Americans (32%) say they spend more on experiences than necessities, leaving them with little more than memories and an empty bank account in the years ahead. 

It’s not all selfish spending, though. More than a third (35%) say their overspending problem is related to their children, while more than a quarter (26%) overspend on their pets.

Some optimists justify their spending by looking to the future. More than a quarter (27%) say they overspend in the hopes that their finances will eventually improve and it won’t matter.

Keeping Up With The Joneses Costs Big 

Overspending isn’t always something people enjoy. About 37% feel pressured to spend money they don’t have, including almost half of millennials (46%) and Gen Zers (42%.) These younger generations are also more likely to spend a lot of money to keep up with their peers, with a third of millennials (33%) and nearly a quarter of Gen Zers (24%) saying so. 

Overall, just under a third of respondents (31%) say they buy something at least once a month because a friend has it or recommends it.

In response, more than 1 in 8 Americans (13%) say they’ve tried to improve their financial habits by reducing the time they spend with people who enable their reckless spending. 

Social Media Spending Sprees

There’s no escaping the temptation to spend on the internet, where consumers are bombarded with a near-constant stream of advertisements. 

Over half of Americans (55%) make purchases based on social media ads, including more than 1 in 8 (13%) who do so at least once a week. As might be expected from more tech-friendly young people, 75% of Gen Z and millennials buy from social media ads — 3x more than boomers (25%). 

The desire to stand out on social media is also a serious threat to American spending discipline. One in 5 respondents (20%) admit they’ve made purchases or taken vacations for no reason other than posting about it on social media. 

Still, few have done much about it. Only about 1 in 10 respondents say they’ve tried quitting or reducing their web browsing (11%) or social media use (9%) to cut back their spending.

Nearly Two-Thirds of Americans Would Consider Moving Somewhere Cheaper, Changing Careers For More Spending Money

The cost of living can significantly impact where Americans call home. Nearly two-thirds (61%) have or would consider moving to a lower-cost area, while 37% have or would consider getting a roommate or renting part of their home. 

With home prices rising 5.5% nationwide from the end of 2022 through the end of 2023, 25% of homeowners have or would consider selling their house to support their financial lifestyle. 

Homeowners aren’t the only ones who’d make big changes to save money on housing. Nearly a third of respondents (32%) have considered moving back in with their parents to free up more spending cash, including almost 2 in 3 Gen Zers (64%) and nearly half of millennials (48%).

Others attempt to earn more rather than spend less to keep up with their lifestyle. About 72% say they’ve considered getting a second job or side hustle. However, a majority of Americans (52%) admit that if they got a higher-paying job, they’d also spend more. 

For some, there’s not much they won’t do for extra cash. More than a third (34%) have or would post content on OnlyFans for more spending money, including a majority of millennials (53%) and Gen Zers (51%).

Up to Half of Young Americans Let Their Spending Habits Hold Back Life Goals

Making money, spending, and saving aren’t always intuitive to young people, with potentially serious consequences. Half of millennials (50%) and 40% of Gen Zers let their spending habits get in the way of other life goals. Only 1 in 6 boomers (16%) feel the same. 

Overall, millennials and Gen Zers have some of the most negative views of their finances of any generation. They’re about 4x more likely than boomers to view their spending habits as problematic. What's more, 41% of Gen Zers and 31% of millennials admit they live beyond their means, compared to just 15% of boomers. 

A closer look at the day-to-day spending habits of young people makes it easy to see why this is the case:

• Millennials are 67% more likely than boomers to eat out or order delivery every week
• Millennials are nearly three times more likely than boomers to buy a cup of coffee every week, while Gen Zers are 70% more likely to do so.
• Millennials are 77% more likely and Gen Zers are 40% more likely than boomers to throw out food or leftovers every week
• Millennials are 60% more likely to shop online every week compared to boomers.

This freewheeling spending adds up. More than half of millennials (52%) spend over $500 monthly on nonessentials, as do 39% of Gen Z members, compared to just 16% of boomers. The results can be serious. Around 2x as many millennials (25%) and Gen Zers (21%) don’t pay all their bills on time compared to boomers (11%).  

Consequently, respondents of all ages, perhaps rightfully, view young people as less responsible financially. Americans believe Gen Z has the worst impulse control (39%), closely followed by millennials (36%). Even Gen Zers think they have an impulse control problem, with 56% listing their own generation as the worst. On the other hand, nearly half of respondents (48%) think boomers have the best impulse control.

Men Are More Reckless Spenders Than Women

Gender is at the heart of many stereotypes about Americans’ spending habits, and these disparities are on full display. More than half of men (51%) report spending $500 or more a month on nonessential purchases, while only 1 in 5 women (20%) report spending that much. 

Men are also more likely to be big impulse buyers, with 1 in 12 (8%) confessing to an impulse purchase that cost $10,000 or more. Barely any women (2%) have done the same. The differences persist even on lower-price splurges. Almost half of men (49%) have spent $500 or more, while only 1 in 5 women (21%) have done so.

Other irresponsible financial habits tend to split along gender lines:

• Men (15%) are over 2x more likely than women (7%) to knowingly make a purchase they can’t afford at least once a week.
• Nearly a third of men (29%) miss a bill every month due to nonessential spending. That’s nearly 2x more common among men than it is among women (16%).  
• Men (36%) are almost 2x more likely than women (20%) to overspend in the hopes that their finances will improve and their reckless spending won’t matter. 

There are many reasons behind the male/female spending split, but the difference seems to come down to their feelings about their financial situation. Almost 3 in 4 men (74%) are satisfied with their current financial situation, while barely half of women (52%) feel the same. Women (39%) are almost 2x more likely than men (21%) to be ashamed of the state of their finances. 

Although plenty of personal influences are at play, America’s stubbornly wide gender pay gap likely plays a role. Women make, on average, just 82% of what men do — a divide that would explain lower nonessential spending and lower overall happiness when it comes to their money. 

A Third of Americans Say Money Buys Happiness

There’s an old saying that money can’t buy happiness. But about a third of Americans (32%) disagree, including 50% of Gen Z and 43% of millennials. 

The financial perspectives of many “happiness buyers” can be somewhat grim. Nearly half (43%) feel pressured to spend money they don’t have, while almost a third (29%) say they spend a lot to keep up with their friends and peers. 

Meanwhile, nearly half of those who believe money buys happiness (45%) have a lifestyle that costs more than they earn, compared to a quarter (27%) of those who don’t feel this way. 

People who believe money buys happiness go to financial extremes to put that belief into practice. They’re nearly 2x more likely to have spent $5,000 or more on an impulse purchase than those who do not believe money buys happiness.

Those who seek contentment from cold, hard cash are far more likely to engage in reckless spending behaviors than those who don’t think money buys happiness. Happiness buyers are:

• 88% more likely to make a purchase they know they can’t afford at least once a week
• 79% more likely to justify unnecessary spending by saying “I deserve it” or “I’ll treat myself” every week 
• 55% more likely to buy things they don’t need at least once a week 
• 50% more likely to make an impulse purchase multiple times a week
• 46% more likely to exceed their budget when making a purchase at least once a week

Ironically, many happiness buyers often find their beliefs contradict their reality. Those who believe money buys happiness are 48% more likely to feel stressed over money multiple times per week than those who don’t. 

It’s a cautionary tale for high rollers that doesn’t usually have a happy ending. People who believe money buys happiness are 50% more likely to say their spending has ruined their lives than people who don’t.

Food and Clothing Top the List of Impulse Purchases

Impulse purchases are some of the most obvious instances of reckless spending, but few people can judge. About every respondent (96%) confessed to impulse buying at some point.  

The most common culprit is food at the grocery store (65%), while over half of Americans (54%) say they’ve spent impulsively on clothing and apparel, including more than a third (34%) who specifically mention shoes. 

Americans have also impulse-bought a variety of bigger ticket items, such as:

• A pet (20%)
• Event tickets (18%)
• Furniture (14%)
• A car (12%)
• Exercise equipment (10%)

38% of Americans Often Shop Online Out of Boredom

Thanks to smartphones and fast, often-free shipping, every American has access to the world’s largest retailers 24/7. Unsurprisingly, it’s made an impact on their spending. 

Half of Americans (50%) confess to spending more money than they otherwise would because of online shopping sites such as Amazon. Specifically, 42% identified online shopping as an area where they overspend. 

As convenient as online shopping has become, it’s still not speedy enough for some. Nearly 1 in 4 respondents (28%) admit to paying extra for faster shipping at least once a month.

Although some Americans argue they’re just shifting in-person buying to the web, more than 1 in 3 (38%) admit they often do it simply because they’re bored.

Old stereotypes may label women as bigger shoppers, but Clever’s survey found men (24%) are almost 2x more likely than women (13%) to shop online multiple times per week.

For Many, Convenience and Comfort Are More Important Than Cutting Costs

Americans are willing to fork over chunks of cash each month to make their lives a little easier — even if that means imperiling their future. Over a third of respondents (35%) admit to prioritizing short-term gratification over long-term financial stability. About half of Gen Z (50%) and millennials (47%) say their focus is on the short term, compared to just 17% of boomers. 

This feeling manifests in a number of behaviors. About 39% of Americans say they dine out or order food weekly, although it costs far more than cooking at home. Nearly a quarter of Americans (24%) also say they buy a cup of coffee multiple times a week.

Meanwhile, 84% of Americans admit they’ve made a significant purchase without taking time to compare prices or shop around.

More Than Half of Homeowners Regret a Home Project or Purchase

Homeownership is often sold as the ticket to financial security, but many find their house quickly becomes a pit of unplanned expenses and a source of regrets. Among homeowners surveyed, a majority (51%) have regrets about a home project or an item they’ve bought for their house. 

Homeowners regret:

• Spending too much (19%)
• Not spending more money for higher quality (15%)
• The contractor they hired (12%)
• Upgrades that require too much upkeep (11%)
• Not getting multiple quotes and shopping around (10%)

Seeing gleaming new kitchens and sophisticated decorating schemes on HGTV or social media has a notable impact on homeowners' spending. Almost a third of respondents (30%) admit social media or HGTV has influenced their home improvement projects. Among them, 1 in 3 (33%) later regret allowing those sources to affect their decisions. 

Homes can also enable reckless spending. About 1 in 8 homeowners (12%) have taken out a home equity line of credit to pay for a vacation or other frivolous purchases — frittering away hard-earned wealth and potentially jeopardizing their financial future. 

Meanwhile, 46% haven’t put in the time and effort to create an emergency fund for housing-related expenses.

3 in 5 Americans Think They Can Improve Their Spending

Despite less-than-ideal spending habits, there’s plenty of optimism among Americans. Although 82% of respondents think they could be smarter with their money, 59% believe their spending habits can be easily changed. 

It’s not just an idle belief, either. Almost all of them (92%) have tried at least one strategy to reduce their spending. Nearly half opt for simple methods, such as using a shopping list (47%), going out less (43%), and monitoring their spending (44%). 

Some other frequently used options for improving their spending habits include:

• Using cash or debit cards instead of credit cards (32%)
• Avoiding name brands and buying store brands instead (26%)
• Spending less time with people who enable their reckless spending habits (13%)

Clipping coupons, or collecting the digital equivalent, is another time-tested strategy for saving money that 78% of respondents use. 

Still, there may be some missed opportunities for American overspenders. About 43% of respondents have never used budgeting apps or tools to track their spending. These convenient and often free services can reduce the hassle of budget tracking by automating critical parts of the process.

Methodology

Clever Real Estate conducted a survey of 1,099 American adults, asking them about their spending habits.  The survey was conducted on February 14-15, 2024.

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $160 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more. 

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