A survey by financial services firm Primerica reveals consumers are turning to home cooking because of personal finance concerns and rising restaurant prices.
Two-thirds of middle-income families responding to Primercia’s Financial Security Monitor survey said they are falling behind the cost of living. According to Primerica, the perception may be influencing individual financial habits with 80% of households reporting they have been cooking more meals at home rather then dining out or ordering takeout over the past year. The top two reasons for the shift in behavior were budget concerns, for 72% of respondents, and unreasonably high restaurant prices, for 62% of respondents.
The FSM survey announcement coincided with the release of Primerica’s Household Budget Index, which indicates middle-income households experienced a slight increase in purchasing power, with the HBI rising for the first time in five months to 100.3% in May, up from 100.1% in April 2024. Although the reading represents a positive indicator as inflation slows down, middle-income households still are struggling to make up financial ground with purchasing power running only slightly above the index baseline of January 2019.
Other findings from Primerica’s U.S. Middle-Income Financial Security Monitor include:
- In the first quarter, 46% of families reported they were scaling back with 48% reporting the same during Q2.
- Cooking at home has increased with a 4:1 ratio of families who report cooking meals at home compared to eating at restaurants or ordering takeout.
- 31% of families indicated that they don’t contribute to a savings account, follow a budget, contribute to an investment account or set a financial budget each month, with anxiety, for 29%, and not having time, for 19%, cited as the biggest challenges people have tracking their financial information.
“Middle-income families are continuing to make adjustments in their budgets in an attempt to manage the ongoing high cost of living,” said Glenn Williams, CEO of Primerica. “Unfortunately, their difficult decisions include the increasing use of credit cards and scaling back saving for the future, which both could negatively impact their long-term financial condition.”
Amy Crews Cutts, economic consultant to Primerica, added, “It’s mildly encouraging that, after taking overall inflation into account, middle-income households saw an average real income gain of 1.3% over the past 12 months. Yet as gasoline prices fell, the costs of other necessity goods rose more quickly, and it will take time for people to feel that both the broader economic and their own financial standing are on the rise.”
