The newest expenses Americans are cutting back on to save money: Travel, clothes, car insurance, and DIY projects

This shift is yet another example of how Americans have changed their consumption habits in recent years, in part to combat various economic challenges.

In 2022, US consumers spent a larger share of their disposable income on food than they had in over 30 years, and in response, many people looked for creative ways to spend less at the grocery store.

While price growth for food and other expenses have slowed considerably over the past two years, dwindling COVID-era savings, smaller pay bumps at work, and the still-high costs of homeownership, childcare, and retirement have continued to motivate consumers to save money.

“People are going to spend, but they’re only going to spend when they feel like there’s really value there,” Ted Rossman, a senior industry analyst at Bankrate, previously told Business Insider.

But where consumers choose to spend their money — and not spend it — is ever-changing.

In 2022, despite rising prices across the economy, many Americans decided that shelling out on experiences and trips was worth it as pandemic restrictions eased. However, in recent months, several travel industry companies have pointed to “softness” in Americans’ travel demand, particularly among lower-income consumers.

To be sure, Americans — particularly high-income individuals — are still spending at strong levels overall. Additionally, there are some expenses, like groceries, where shoppers continue to look for ways to get around elevated prices.

However, travel, clothes, home improvement, and car insurance are among the areas many Americans have cut back more over the past year to give their finances a boost.

Here’s how this spending shift is playing out.