If 2024 was the year of splurging, it looks like 2025 is shaping up to be the year of scaling back. Subscriptions, beauty products, and “little luxuries” are all under review and Americans are rethinking where their money goes. Here a nine things people are cutting back on this year.
7. Streaming Subscriptions
That monthly bill for entertainment is getting a second look. With so many services, subscription fatigue is real. In September 2025, Disney+ saw its cancellation rate double to 8% amid a controversy, as per an article from Variety. Also, a YouGov poll found that nearly half of Americans changed their streaming subscriptions in the past six months, with 66% citing cost as the primary reason.
6. Clothing & Fashion
In the first quarter of 2025, spending on clothing and footwear decreased by over 20% compared to the previous quarter, according to data from Empower. That’s an average monthly spend of $573, down from $732, signaling that consumers are actively reducing their spending on clothes, shoes, and accessories. It seems a wardrobe refresh is taking a backseat to more pressing financial priorities.
5. Luxury Goods
High-end splurges are losing their luster, too. The market for personal luxury goods is projected to decline by up to 5% in 2025, according to Bain & Company. With economic uncertainty in the air, even affluent consumers are thinking twice before paying for premium products and designer brands.
4. Beauty & Personal Care Products
Even the daily essentials are getting a trim, with over 60% of American consumers anticipating spending less on beauty products, according to an L.E.K. Consulting survey from October 2025. It appears now that the desire for a simplified routine and a healthier bank account is stronger than the allure of a fully stocked cosmetics drawer.
3. Travel
After a period of “revenge travel,” wanderlust is being tempered by a financial reality check. In February 2025, spending on air travel dropped 10% year-over-year, while hotel spending decreased by 6%. This trend continued through March, with Bank of America data showing a 6% year-over-year decline in air travel spending. The U.S. Travel Association also predicts a 6.3% decrease in inbound international visits for 2025.
2. Dining Out & Restaurants
In the first quarter of 2025, Americans ate a staggering one billion fewer meals at restaurants compared to the same period last year, according to Circana data. This resulted in the weakest six-month sales growth for restaurants in a decade. This also leads us to the realization that the convenience of a meal out is increasingly being outweighed by the cost.
1. Groceries (Premium Items)
Another cutback is happening in the grocery aisle. With record-high beef prices and coffee costing a dollar more per pound since May, shoppers are making changes. A Wall Street Journal report highlights that consumers are cutting back on some foods and stockpiling others to manage costs. The trimming of grocery lists is a clear sign that economic pressure is hitting home for everyone.