I recently wrote about why I’m not shopping, and support from The Purse community highlighted that I’m far from the only who’s been cutting back in recent weeks. Commenters discussed relying more heavily on their local libraries, baking and cooking more, and doubling down on free or low-cost hobbies this year.
The economy feels a little unsettled right now, and the best thing to do when you’re worried about job loss or a potential stock market bubble is to save cash.
Fidelity’s newly released 2025 Women and Money study shows it’s a widespread trend. Some 42% of women say they cut spending on nonessential activities over the past year, with more than 75% of them attributing their pullback to economic uncertainties including inflation, tariffs, and changing interest rates. Fidelity puts it this way: “Women are embracing financial frugality.”
Frugality is, in my mind, one way economic caution is manifesting in our day-to-day lives. And we’re all doing it in different ways. Younger women are focused on budgeting more effectively, whereas older women are focused on trimming costs, according to Fidelity’s study.
Another manifestation of that caution stood out to me: Just 15% of women are looking for a new job in the coming year, while almost half say they don’t think they can leave their jobs right now, the Fidelity study found. You’ve likely seen the term “job hugging” floating around, and this is a prime example of that. In a so-called “low hire, low fire” economy (though the “low fire” part might be changing), more people are clinging onto jobs they might not like because they’re worried they won’t be able to find a new one.
As the New York Times writes about the job-hugging trend, it reflects our broader uncertainties about the economy. “Tariffs are hobbling companies. Immigration raids are decimating the work forces of some industries and igniting fear in communities. Artificial intelligence is spooking everyone…Quits reflect workers’ confidence—and at the moment, they do not seem particularly confident.”
There’s been a lot of jokey content on social media in recent months about “recession indicators,” or things people are doing that hint an economic downturn is coming. I’ve seen it related to everything from Lily Allen having a buzzy new album (her biggest album to date came out in 2008) to people increasingly opting for lower maintenance hairstyles that don’t require as many visits to the salon.
One of the classic indicators is the lipstick index, which posits that sales of affordable luxuries—or little treats, in today’s parlance—like lipstick tend to increase during times of economic uncertainty, as consumers substitute big, expensive purchases for small indulgences. The job market might seem unstable, but a new shade of lipstick can brighten your day, even if it’s fleeting.
Now, arguably, even once-affordable luxuries are out of reach. Tariffs have sent coffee prices sky-rocketing, making the price of the much-maligned latte an actual impediment to building wealth. (I kid…kind of.) Some lipsticks at Sephora cost $50 a tube or more. At those price points, they’re just luxuries, full stop.
The U.S. isn’t in a recession, at least not yet. (Although the federal government data blackout makes it kind of impossible to track.) But with everyday Americans being squeezed from every angle—health care, student loans, grocery prices, Lego sets—it’s no wonder so many of us are pulling back spending where we can. It feels a lot wiser to set $50 aside right now than to spend it on a tube of temporary happiness.
It’s worth noting that while this seems like another pessimistic take on the economy, Fidelity’s outlook—and that of Alex Roca, host of Women Talk Money at Fidelity, who I spoke to about the survey results—isn’t necessarily negative. There’s nothing wrong with being frugal, and, in fact, it can be a tonic for the over-consumption that’s typical in the U.S. There’s also nothing wrong with being more conscious of your spending habits and making sure your finances reflect your values.
A couple weeks ago, I saw an Instagram post from Erin Lee Carr, a director whose work I follow. (She also wrote a moving memoir that touched on her relationship with her father, the journalist David Carr.) Though her content isn’t typically money-focused, she captioned the post with reflections on how she’s worked on getting her personal finances together in recent years. One of the most effective things she did was invest a small amount of money every month, and watched in amazement as it compounded over time.
Erin admits in her post that it sounds “dorky,” but it stuck with me because, while it’s something that’s advised on every personal finance site, hearing about it from a real person who’s found success hit different. Alex emphasized the power of saving during our talk, too. Every little bit socked away helps you feel a little bit more secure. Though I’ve written that advice myself countless times, reading Erin’s post really sparked something for me, and made me want to redouble my frugality efforts to focus on providing that security for my family.
I’ve written about personally wanting to budget better for years; now, I almost feel like I’m on deadline with it. And as someone who almost always works better under pressure, that’s making it much easier for me to think through what my actual goals are and where I can cut back. I have a little more bandwidth now to review my spending habits, consider what I have to show for it, and decide what I want out of my money going forward. That feels really good, actually.
-Alicia
Consumerism in the News
- A new economic buzzword just dropped from the economist who brought us the term “K-shaped” economy: Bloomberg reports the economy is like a “top-heavy Jenga tower,” in which the rich are driving ever more of consumer spending, and the bottom 80% of earners are pulling back on everything. As you likely know, top-heavy Jenga towers aren’t exactly stable.
- Another hint that less well off people aren’t faring well: CEOs are saying it in earnings calls. Chipotle chief Scott Boatwright said lower traffic to its fast-casual restaurants is because 25- to 35-year-olds are eating out less, as are those earning under $100,000.
- Middle-income earners typically pull back spending when there are widespread job losses, which isn’t the case currently. Yet those same earners are shopping less, due to poor economic sentiment, according to Michael Skordeles, head of U.S. economics at Truist Advisory Services Inc.
- Inflation isn’t as bad as it was a few years ago, but prices are up 27% since the start of the pandemic. Are we all making 27% more than we did five years ago?
- I thought this article from Lisa Sibbett of the Auntie Bulletin offered some great insight on resisting consumerism.
- I’ve been thinking a lot about how to handle the holiday season this year. How are we all doing it? Let us know in the comments?
What Else We’re Talking About
- Love this profile on Kindred Lubeck, the woman who designed Taylor Swift’s engagement ring. She talks about wanting to see her name “in lights,” and, well, she accomplished it. Maybe I should try manifesting? - Alicia
- Two of my favorite Substack mom friends (hi Rachel and Jen) are featured in this fun working moms round table from the newsletter Double Dutch. - Lindsey
- The CSA has been heavy on carrots, onion, kale, and other leafy greens the past few weeks; no complaints here. I’ve been making a lot of soups, but a recent standout recipe was this delightful (though not exactly healthy) kale salad. - Alicia
- I am very intrigued that Lina Khan is co-chairing New York City Mayor-elect Zohran Mamdani’s transition team. - Alicia
On Our Radar
- I love the series “What LinkedIn Doesn’t Say,” and so I jumped at the chance when Amy asked me to participate. Going through my career trajectory, I was struck by how often past connections popped back into my life at just the right moment. -Lindsey
- ICYMI: We’re having a big sale on annual subscriptions right now for my birthday month! Until November 30, you can get an annual subscription for $45.60 (usually it’s $80), and we’ll be donating $5 from every new annual subscription to a food bank. -Lindsey
Best Money We Spent This Week
- I’m in Washington, D.C. for The Gathering, a really cool women’s conference hosted by Amy Nelson of The Riveter. Before I left NYC, I was scrambling to buy some new tights to wear this week, so I popped into the Wolford in Columbus Circle on the way to pick up my son from my mom’s (yet another day off school). The tights are expensive, but I have one pair I’ve been wearing since 2019. And they just feel so nice! Plus, the pair I bought this week were on sale! $43. -Lindsey
- I bought a couple of rounds of drinks to celebrate my friend Jen after she ran the NYC marathon (she killed it). The city was electric on Sunday, and it was so fun being around so many people celebrating their loved ones. $60 -Alicia
