Stashing cash: 71% of Americans are setting more money aside amid recession fears, new report finds

Consumer spending is cooling down, BofA Institute report finds

Renewed fears of a possible recession have spurred more households to adjust their spending habits — finally.

Broadly, Americans are cutting back, particularly on discretionary purchases, and saving more, according to recent reports on the state of the consumer by the Bank of America Institute and Deloitte.

Now, 71% of Americans are likely to keep cash on hand, according to a new Country Financial security index.

To save more, about half of all adults are dining out less frequently and 42% have changed the way they shop for food, according to the Country Financial report, which was provided exclusively to CNBC before its general release Wednesday. Other consumers are driving less to save on gas or canceling some streaming services.

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“With elevated inflation, Americans are doing what they can to make ends meet,” said Chelsie Moore, a certified financial planner and director of wealth management solutions at Bloomington, Illinois-based Country Financial.

“A market of high interest rates is favoring savers versus spenders,” she said. “This means those who are saving are getting paid more to do it.”

Even as Americans are more likely to keep cash on hand, most said they don’t know the best ways to save to reach their short- or long-term savings goals, according to Country Financial.

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