Tom BurtonCo-Founder, COO and CTO of LeadSmart Technologies

Why Consumers Spend More on Experiences Than Ever Before #economics

Name: Why Consumers Spend More on Experiences Than Ever Before #economics
Uploaded: 2024-05-27T14:38:01+00:00
Duration: 57 s
Channel: Tom Burton
Description: Tom Burton (video creator and speaker) observes that despite low savings and high credit-card debt, consumers are currently spending more on experiences…

27 May 2024 · 1 min

Watch on YouTube

0:57

Tom Burton (video creator and speaker) observes that despite low savings and high credit-card debt, consumers are currently spending more on experiences (dining, travel) rather than large durable purchases. He attributes this pattern to post-COVID pent-up demand and a perceived sense of wealth from home equity and 401(k) balances, which encourages continued spending even if funds are not liquid.

Chapters

Savings are at the lowest level that they've been in many, many years. Credit card debt is at the highest level that it's been at many, many years. Yet as consumers, what we're spending most of our money on right now is not these big purchases like they have here, but experiences and whether that's eating out, travel, whatever, which aligns with what I saw in Vegas a couple we bet weeks back of just people spending money like crazy on experience. Now the reason that people, they say that so much money is still being spent on experiences is that people are still kind of, you know, coming out of the COVID lockdown phase and they're going to go do everything and anything they couldn't do. And the reason that they're continuing to spend is that they have equity in their home. They have the wealth factor of their home equity. They have the wealth factor of their 401k. Even though that money may not be immediately accessible, there's still that feeling that, hey, I've got this wealth.