More Signs of a Slumping Economy
A new study out this week is showing that the post-Christmas rush to spend gift cards is apparently non-existent. It’s a sign that everyone is dealing with a continually weakening economy. Our nation’s biggest retailer, Wal-Mart, has been closely watching the way people have been spending their holiday gift cards this month. It turns out people are either holding on to them and saving them for harder times or they’re spending them on basic necessities.
Wal-Mart has indicated that most gift card purchases in their store are going toward food staples like pasta, cereal and canned goods. Even other major retailers are seeing similar trends. Upscale clothing retailers are seeing more people spending their gift cards on socks and underwear then on that new $100 pair of jeans. People are walking right past those plasma screen TV’s, video games, CD’s and other superficial items and picking up the necessities.
This sign doesn’t make me worried. I feel like we’re in a good position to weather a recession should our country really slump into one. We are always stocked up on the basic food items and are continuously looking ahead. What do we need and what do we really need to not spend the money on? One thing we could do better is save. It’s hard right now at this point in our life to really shunt money away into another account. Our retirement savings has been underway for the last 5 years now and we do have about $2,000 in a savings account that never moves. But, I still don’t think that’s enough and would like to have a bigger pad.
In the meantime, I think this latest economic trend shows consumers finally realizing what’s important and what isn’t. You need the basics to live. All the rest are just accessories of our lives that for some wild reason, we feel like we need to drag around with us. I’m glad we’re getting a bit of a reality check. I don’t think our nation has really had to scrimp or save for awhile. While I’d like to think it will get people into the habit of planning financially and making hard decision on what they need and what they don’t, I know it will just return to the same old consumer economy a few years down the road.