'Cutting Back' Felt Different 10 Years Ago — Here's Why
If you feel like you’re pinching pennies tighter now than in 2016, you’re not alone. A lot has changed in the past 10 years — and for many, that includes the strain on their wallet. Reducing expenses probably didn’t seem easy then, but it has a largely different meaning now.
In June 2026, prices were approximately 38% more than in June 2016, according to the Consumer Price Index. It’s worth noting that federal minimum wage has held steady at $7.25 per hour since 2009, according to the Department of Labor. Keep reading to explore what cutting back looking like a decade ago, compared with today.
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Reducing Discretionary Expenses vs. Getting the Value From Every Dollar
The vast majority (83%) of Americans identify as frugal, according to a 2026 BestMoney study. The top five categories wherein people categorize their spending as frugal include clothing (63.1%), entertainment and subscriptions (59.8%), groceries (59.6%), dining out or takeout (57.9%) and household supplies (53%).
While some of these areas have long-been considered non-essential — i.e., entertainment and subscriptions and dining out or takeout — categories like groceries and household supplies are basic necessities. Rising rates of people resorting to frugal spending in these categories represents a shift in the past decade.
“In 2016 people would mostly associate tightening belts with the loss of discretionary expenses and changes to their personal lives,” said Joe Braier, president and CEO of Lake Country Advisors.
These days, it can be harder to adjust to a reduced income, he said. Much of this is due to increased expectations and the need to prioritize obligations over time.
“The main factor that accounts for the different attitudes toward cutting [costs] is the increased awareness of the value of money, he said.
People want to be sure every purchase they make is justified and serves a particular purpose, he said. Consequently, this has created a greater emphasis on value and searching for ways to get the most from a dollar.
Cash vs. Credit
“I believe the biggest difference in cutting back today versus 10 years ago is the fact that cash has become almost non-existent in our society — especially among younger generations," said Patrick Yaghoobians, certified financial planner, founder and financial planner at Noor Financial Services.
As a result, it’s much easier to spend unconsciously, he said. Although credit cards were used heavily in 2016, today’s largely cash-free infrastructure has made consumerism easier than ever.
For example, millennials had average credit card balance of $3,809 in 2016, according to Experian. In 2026, this number nearly doubled to an average of $7,013, according to Experian.
To curb this costly habit, he recommended creating friction between yourself and your spending.
"This can involve deleting apps for stores you frequently shop at from your phone or removing your saved credit card information from an app,” he said. “This friction adds extra steps to making purchases, which might be enough to help someone cut back, without really feeling like they are cutting back.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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