How Americans Are Rethinking Budgets in 2026
In 2025, consumer priorities shifted from buying goods to making lasting memories, as household budgets favored immersive experiences and global travel over physical possessions. However, budget mindsets are shifting again in 2026.
Data from the latest MoneyLion survey shows that 39% of Americans didn’t save enough for emergencies, while 44% spent too much on nonessentials. According to recent economic data, the splurge-at-all-costs mindset has been replaced by a disciplined, strategic emphasis on saving.
Key Findings
Based on the data, the 2026 economic landscape is defined by a shift from spending to an emphasis on saving. While most American consumers are tightening their belts to address 2025 financial regrets, a small "splurge" segment is pivoting away from material goods toward health and wellness.
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What Is Driving Consumers To Rethink Their Budgets in 2026?
Consumers are no longer relying on optimism to help them pull through economic cycles. Instead, they are reforming their pandemic mindset, where funds tended to go toward what was more convenient rather than what may have seemed more affordable.
Part of the shift in budgeting is also a result of the overall economic instability with taxes, tariffs and job insecurity. Americans believe that higher prices are here to stay and so they cannot treat the current economic climate as temporary, but permanent.
Instead of being reactive, people are addressing their anxiety by taking proactive actions now — a sign that Americans are bracing for a less-than-ideal economic impact.
The Great Spending Reset of 2026
Over half of U.S. adults are starting the new year with plans to reduce costs. After years of heavier spending, many are looking to trim non-essential expenses.
These are some of the main categories where Americans are planning to spend less in 2026:
Dining out: 67% admit wanting to cut spending on eating out.
Online shopping: 51% would like to decrease their impulse to buy online.
Subscription services: 34% want to reduce subscriptions.
Entertainment: 32% would like to cut spending on movies, concerts and events.
Alcohol: 27% are moving toward sobriety-focused budgeting.
American consumers are looking to cut passive spending related to leisure and make more value-driven choices. Consumers are pivoting their perspective to look long-term instead of prioritizing short-term happiness. People are cutting small, recurring expenses in favor of spending more on meaningful choices with long-lasting benefits.
The 2025 Regret Realization
Financial anxiety in 2026 is caused by the increase in spending in the previous year. For example, one-third of the population carries financial regret from 2025, with Gen Z (46%) nearly twice as likely as baby boomers (24%) to report regret. Here are the main drivers of financial regret:
Nonessential spending: 44% admitted to overspending on wants.
Safety net gaps: 39% failed to prioritize emergency savings.
Debt and delinquency: 33% fell behind on bills, while 27% took on excessive credit card debt.
Lack of control: 30% cited impulse purchases as a major drain on their net worth.
Where People Will Continue To Spend: Strategic Wellness
While the majority are cutting back, 17% of Americans plan to increase spending. However, their focus has shifted from spending on nonessential purposes to allocating money for self-care expenditures. This group is redefining luxury as an investment in longevity and mental well-being. Here are the priority categories for 2026 splurges:
Travel: About 50% are prioritizing international bucket list trips or family reunions.
Health and nutrition: About 43% want to dedicate funds to biohacking, clean eating and preventive care.
Entertainment: 39% want higher-quality immersive experiences.
Where Americans Are Cutting Back
American consumers are eager to dial down spending in key categories involving expenses that can be seen as splurges.
Restaurant Expenses
Close to 70% want to curtail restaurant dining. Many are opting to make meals at home and foregoing the markup costs for meals at restaurants.
Digital Shopping
Over half of the people surveyed want to prevent impulse buying online. People are choosing to delete apps that encourage shopping or unsubscribe to marketing emails that entice people to buy services or products.
Subscription Services
Nearly a third of survey respondents want to decrease online subscription services. This includes online entertainment like Netflix and Apple TV and specialty subscriptions like “Book-of-the-Month.”
Entertainment
Over 30% want to reduce unnecessary “fun” expenses like concerts, movies and other events.
Alcohol
Almost a third are steering away from drinking and are moving instead toward sobriety. This trend could be due to the rising cost of alcohol, but also a tilt toward wellness.
How Budgeting Plans Differ Across Generations
Gen Z, millennials, Gen X and baby boomers look at budgeting differently. Here’s how...
Gen Z: Active Budgeters
Gen Z (ages 18 to 28) are the most behaviorally flexible, and 58% of them are likely to spend less, while 23% want to spend more.
High flexibility
More agreeable to adjusting budgets
Look at budgeting as experimentation
Millennials: Structured Optimizers
Millennials (ages 29 to 44) are more likely to optimize their budgets. Over 45% want to spend less, while 24% want to spend more.
Most active in financial tracking and budgeting
Sensitive to recurring expenses
Balancing cuts and increases in spending
Gen X: Definitive Planners
Gen Xers (ages 45 to 60) have more of a cost-control mindset, with 56% spending less and 13% wanting to spend more. About 24% would not make a single change.
Fixed-income mindset
Less granular tracking
View budgeting as risk control
Baby Boomers: Budget for Stability
Over half (54%) of baby boomers (ages 61 to 79) are likely to spend less, while 5% want to spend more, and 34% are not likely to change their budgets.
Least likely to track spending or change
Fixed-income mindset
Budgeting embedded in a fixed-income mindset
Who’s Still Spending More in 2026
About 17% of people are planning to increase their spending but are choosing to be more intentional about where their dollars go. Despite the overall shift of some wanting to spend less, this group is dedicated to spending more on higher priority areas like wellness, travel and entertainment.
For example, instead of booking a vacation at a resort that features bars and nightclubs, they may look for splurging on a wellness retreat that emphasizes exercise and meditation. This demographic is looking to spend in areas that will make a difference in their everyday life.
What These Spending Shifts Mean for Budgets in 2026
As a chief financial expert, I saw 2025 trends prioritize spending on experiences, often pushing savings to the background. People seemed to be more inclined toward creating memories rather than building assets. Nearly half of Gen Z is facing a financial identity crisis, and now their experimental spending is shifting toward focusing on economic stability.
Here are some of the trends...
Reducing Overspending Behaviors
Small, frequent treats like $7 lattes or the $25 spent through apps like Instagram began adding up. In 2026, people are realizing that discretionary spending interferes with building savings.
Close to 44% admitted to spending on wants and making monthly or yearly trips. This approach cuts into prioritizing savings.
Increases in Debt
Almost a quarter of people took on more credit card debt, and paying interest on this debt chipped away at paychecks.
Bill delinquency caused fixed expenses to go up, and that’s why many want to cut subscriptions and reduce dining out expenses.
Generational Behaviors and What They Show
Generation Z may be the most stressed about their budgets, but they are also the most proactive. They are likely to cut subscriptions, limit dining out and delete apps to enforce a more disciplined approach to budgeting.
Millennials will likely be more discerning regarding their budgets. They will cut eating out but may be willing to splurge on improvements for wellness and self-care.
Gen X and baby boomers are not surprisingly concerned with wealth preservation. They are using budgets to combat inflation and market volatility.
How To Manage Budgets in 2026
If you’re in the category of the 39% who didn’t build enough savings in 2025, here are some proactive measures you can take:
Cut leisure subscriptions: This is the easiest way to help build savings. Cancel all entertainment or leisure subscriptions and then add back one or two subscriptions that you missed. Earmark the money you’re saving and place those funds in your account.
Automate your savings: Review where you can make savings automatic — this means looking at all your personal financial accounts. Can you get a better high-yield savings rate? Are you taking advantage of your employer’s 401(k)? Are you automating withdrawals from your paycheck into your savings?
Engage in mindful spending: If you’re in the 17% who are spending more, make sure your splurges focus on wellness longevity. Get a gym membership instead of shoes so that you’re spending on a service that has long-term value.
Final Take
In 2026, folks are trading in experiences for savings. This mindset shift indicates that many are rethinking their budgets because they didn’t save enough money in 2025.
To tackle your budget, start small. Eliminate unnecessary subscriptions, reduce restaurant expenses and cut frivolous spending. Make sure you earmark these funds so that you can dedicate that money to building your savings. Automate as much as possible to make gains in your savings.
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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