Americans cut back on food, dining, spending as costs climb and refunds become essential

By Stacy M. Brown

Contributing Writer

(The Washington Informer) – Americans across income levels are changing how they eat, spend, and plan their finances as rising costs for food, housing, and basic necessities continue to tighten household budgets, according to a series of new LendingTree analyses and local data from the District of Columbia.

“Food costs are hitting every income level, and it’s changing how people spend,” said Matt Schulz, chief consumer finance analyst at LendingTree. “Nearly half of Americans are struggling to afford food, and even higher earners are feeling the pressure. That shows up in everyday choices, from groceries to dining out, and it’s a clear sign that budgets are stretched thin.”

A LendingTree survey found that 49 percent of Americans say it is difficult to afford food right now, while more than half report spending more on groceries and dining than they did a year ago.       The financial strain is especially pronounced among younger generations and families, with 19 percent of Gen Z respondents, 18 percent of millennials, 17 percent of parents with young children, and 22 percent of low-income households saying affording food has become very difficult.

Concern extends beyond those reporting hardship. Even among higher-income households, 57 percent said they worried about paying for groceries in the past month.

As a result, Americans are adjusting their daily routines. Nearly 90 percent say they have changed how they shop for groceries. About 30% are watching prices more closely, 24 percent are cutting back on splurge items, and 23 percent are reducing food waste and relying on leftovers or switching to store brands.

For many low-income households, those adjustments are no longer enough. The report found that 22 percent are buying fewer groceries and 18 percent are shopping less often, indicating that some families are reducing food purchases after exhausting other cost-cutting options.

Spending at restaurants is also declining. LendingTree found that 84 percent of Americans have cut back on dining out, with 39 percent eating out less frequently, 25 percent paying closer attention to menu prices, and 22 percent choosing cheaper restaurants or fast food. A quarter of Americans say they are tipping less, while 19 percent of millennials and 16 percent of Gen Z respondents have stopped ordering delivery to save money.

“Margins get even tighter when inflation runs rampant,” one social media user wrote in response to a video of a restaurant worker getting into an altercation with a customer for not tipping.  “Restaurant owners are hurt from raising prices to make a profit and customers eating out less, because they have less spending money.

The Benefits of Tax Season

At the same time, tax season has become a financial lifeline for many households. A separate survey found that 46 percent of filers are relying on their tax refund this year, an increase from 42 percent in 2025, 40 percent in 2024, and 36 percent in 2023.

Most filers plan to use those refunds for necessities rather than discretionary spending. About 34 percent say the money will go toward everyday expenses such as groceries, rent, and bills, while another 34 percent plan to pay down debt and 32  percent intend to build savings or an emergency fund.

The need is immediate for many households. More than half of filers say they expect to spend their refund within a month, while two-thirds say the refund is important to their financial situation.

“We have people in this country trying to hold out on critical time-sensitive health care until they get their tax refund,” social media user Warren wrote on X, formerly known as Twitter.

Tax season itself remains a source of strain, with half of filers reporting that it is very or somewhat stressful.

“I have horrible anxiety over April 15 and tax day,” advocate and politician Martha Bueno wrote on X. “As in I suffer all year long just thinking about having to fill out forms or pay someone to do it, and if it’s wrong then agents will come to my house to  audit me and maybe even to arrest me. Government doesn’t just rob Americans of their earnings, they also give us raging anxiety.”

The Stress of Housing Costs   

Housing costs are adding to the pressure. LendingTree’s analysis of more than 89,000 mortgage purchase inquiries found that first-time homebuyers now spend an average of 23.2 percent of their income on monthly mortgage payments, compared with 17.4 percent for repeat buyers.

First-time buyers are also putting down significantly less cash. On average, they plan to put down $55,471, compared with $119,270 among repeat buyers, a gap of more than $63,000. Even with smaller loans, those buyers face a heavier burden relative to their income.

“California’s dominance here isn’t surprising,” researchers noted. “It’s one of the toughest places in the country to buy a home, which means many older homeowners simply aren’t moving.”

Seven of the top metropolitan areas with the highest share of first-time buyers are in California, led by San Jose, Fresno, Los Angeles, San Francisco, and Riverside. At the other end of the list, Oklahoma City and Jacksonville have the smallest shares, followed by Raleigh, Tampa  and a tie between St. Louis and Indianapolis.

“When fewer move-up buyers are active, first-time buyers can make up a bigger share of the market,” the researchers concluded. The reality, though, is that these buyers are often stretching more than repeat buyers. They’re younger, earn less, and are putting down far less cash, so even a slightly smaller mortgage can take up a much bigger slice of their income.”

This article originally published in the March 30, 2026 print edition of The Louisiana Weekly newspaper.