Survey: 60% of Americans plan to spend less on 4th of July in 2024: How inflation impacted the budget decision

The Fourth of July is right around the corner, and Americans rarely keep their hands tied behind their backs when it comes to splurging their hearts, empowered by firework-packed patriotic fervour. As one of the most prominent US holidays dotted by family gatherings nationwide, American Independence Day is bound to bang up a hefty bill, all thanks to inflation.

FILE PHOTO: Fireworks explode over the National Mall during Fourth of July celebrations, in Washington, U.S., July 4, 2023. REUTERS/Kevin Wurm/File Photo(REUTERS)

Despite the traditional holiday mood in the air, 60% of Americans are determined to keep their pockets tight and spend less money this coming Thursday than last year’s Fourth of July, according to a survey by the personal-finance website WalletHub. In the wake of the current political scenario, the survey also details Americans’ opinions on freedom and patriotism.

Americans’ responses vis a vis the 2024 Fourth of July revealed

WalletHub’s national online survey, which took over 200 respondents’ responses into account, showed that 60% of Americans plan to spend less money than last year. Similarly, 3 in 5 (60%) admitted inflation affected their Fourth of July plans. In addition, 2 in 3 Americans (66%) said the country’s Founding Fathers would be turning in their graves and dissatisfied with the current economy.

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Cassandra Happe, a key analyst for the website, revealed, “Inflated prices for food, travel, and other holiday staples are making people rethink their plans.”

Other than keeping their budget in check, 7 in 10 people (70%) believe access to credit should be a basic American right. Making access to credit a basic American right was a popular topic of discussion. Happe divulged that people who affirmatively argued for it to be made a basic right as they believe “everyone can help people escape poverty.” Meanwhile, those against it argued that “it can lead to bigger financial problems like excessive debt.”

“Around 84% of US adults already have at least one credit card, so it seems like easier access to more affordable credit is really what people are after. People who have trouble getting approved for traditional credit cards or loans should consider options like secured credit cards and secured loans, which require collateral but are attainable for most people as a result. Secured credit cards and loans can help build the credit necessary to borrow more in the future,” the finance expert noted.

61% of Americans felt financially independent for this year’s Independence Day, while 52% ascertained their financial situation had improved since last year’s Fourth of July.

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Although the former revelation paints a relatively optimistic picture that outweighs the number of Americans who don’t deem themselves financially independent, Happe foregrounded that the number of people who positively responded to that question had actually gone down from the 63% who felt financially independent in 2023, according to the website’s Independence Day survey.

“While the economy has remained relatively healthy and managed to avoid a recession, persistent inflation and other difficulties have prevented a significant portion of the population from achieving financial freedom. The best way to improve your financial independence is to avoid spending beyond your means, dedicate as much money as possible to paying off debt and try to save at least a small amount of money each month in an emergency fund,” the analyst added.

However, they also iterated they hadn’t quite achieved the holy grail.

When asked what the respondents would most like to declare their independence from, Americans announced social media (27%), credit card debt (27%) and overeating (23%) as their top three vices. 8% also listed alcohol or tobacco as their ultimate nemesis, while 7% chose student loan debt and another 7% TV as what they sought freedom from.

The finance website’s expert declared credit card debt a “worthy cause when the average household owes over $10,000 to credit card companies.”