Save your money, be a 'DINK'

Recently, I went to pick up lunch from a local grocery store. I picked a sandwich and a Coke. The total of the meal would be about $5. But as I strolled to the self-checkout, a little sign caught my eye: "Meal deal". If I were to purchase a third item, regardless of my hunger level, the entire purchase would be only $6.50.

Consider me sold.

This kind of spending to save, also known as "spaving" is increasingly common in retailers across the U.S. Teensy incremental adjustments in spending are framed as deals, giving customers the feeling they've made a good choice.

But don't get it twisted: "spaving" is still spending. Even if I feel I got more for my money, it's not clear if I would have purchased the extra item in the first place if the store hadn't imagined that for me.

This perplexing feeling is one of the many interesting money trends hitting Americans' wallets this summer.

👋 Nicole Fallert here and welcome to Your Week, our newsletter exclusively for Paste BN subscribers (that's you!). This week, we talk with Daniel de Visé, author of Paste BN's Daily Money newsletter, about his reporting on Americans' money habits this summer.

But first, don't miss these stories made possible by your Paste BN subscription:

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◾ Here's the difference three years made for Sha'Carri Richardson.

'DINKS', 'Spaving' and bridesmaids

While "spaving" is a micro-trend, a broader current shaping American money habits is rethinking traditional household structures.

Enter the era of the DINKS: "Dual income, no kids". This increasingly growing population of Americans is marrying later, putting off having children (or opting not to have them at all) and opting to save their money. And no these aren't just childless cat ladies. These are adults who say not having kids has made it easier to afford the things they want, save for the future and have time for hobbies – and they care just about the future of the nation as people who choose to be parents.

A big rationale for delaying a first child is the struggle to buy a home, De Visé said.

"It's an endless frustration for people who want to buy a first house," De Visé said. "With home prices rising and interest rates so high, you have to be super rich to afford a house. Meanwhile, homeowners feel trapped in their homes because it's not the right time to sell. It's like we're under house arrest. This matters especially for people trying to retire – the retirees of today aren't able to pay off their homes."

The rise of "DINKS" is one of many money-related stories De Visé has featured in Paste BN's The Daily Money newsletter, a daily look at how Americans' everyday lives are shaped by financial decisions (you can sign up here!).

The money trends of summer 2024:

◾ Stocks have been up and down and all around: "It's been a nervous few months for stocks," De Vise said. "Especially for retirees who have their money in the market."

◾ Weddings are so back: Time to balk up the cash for love. Americans are shelling out thousands of dollars for nuptials (maybe time exercise the power of "no"?!).

◾ Back-to-school is already causing stress: More than 3 in 4 parents, or 70%, believe that schools ask them to buy too much for the back-to-school season.

◾ Cars are more tripped-out: "We are rejecting small sedans and opting for massive, luxury cars that end up costing more," De Vise said. "While the average car now lasts longer, so do those associated costs of a premium vehicle."

We're entering election season, which means even more focus on the economy. One thing Democrats and Republicans will likely agree on: Tax cuts should remain an area of focus. Republicans will opt for keeping taxes lower for all Americans, while Democrats believe this is too friendly to wealthier people. They believe those making over $400,000 per year should be subject to heavier taxes. Watch this space as the election ramps up, De Vise says, and lawmakers make their policy stances on tax cuts known.

"The billionaires of our country control more money than half of all Americans," he said.

So you might not become a billionaire this summer, but there are ways to get richer, De Visé said. Perhaps it's being more aware of when you're "spaving" (and actually still spending more) or stowing away part of your paycheck in consistent increments to build enough padding for a last-minute summer vacation. Perhaps you're buying store brand versions (think Whole Foods' 365 label) rather than premium name-brand products. For De Visé, he's been driving to pick up his take-out orders rather than paying the extra pennies for delivery apps. Whatever it is, think small and smart.

Thank you

I'm going to go check my bank account with all this new knowledge in mind. Thank you for supporting our journalism with your subscription. Our work wouldn't be possible without you. 

Best wishes, 

Nicole Fallert