No Longer An Option: 12 Surprising Expenses Poor Americans Are Eliminating

Many families are having to make hard choices about their money as the cost of living keeps going up. Food, housing, and healthcare are all getting more expensive, which means there isn’t much room for spending on things that aren’t necessary. People and families are changing their budgets and cutting out costs that used to be manageable but are now too high to keep up with. Here are some of the most common things that low-income Americans are giving up to ease their financial stress.

Restaurant Dining and Takeout Becomes a Rare Treat

When money is tight, eating out is often one of the first things to go. Inflation and problems with the supply chain have made eating out, even fast food, a lot more expensive. Many families are now cooking at home more often because they can save money on food by planning meals ahead of time, buying in bulk, and shopping at discount grocery stores. Eating out isn’t a regular convenience anymore; it’s more of a treat now and then.

Cutting Back on Subscription Services and Paid Entertainment

Streaming services, gym memberships, and other monthly subscriptions may seem like small expenses individually, but together they can add up to a substantial portion of a household budget. Many low-income individuals are reevaluating whether these services provide enough value to justify the cost. Instead of juggling multiple streaming platforms, some are opting for free alternatives like ad-supported streaming or public library rentals.

Prioritizing Essentials Over Brand-Name Groceries

Grocery shopping has become an exercise in financial strategy. With food prices climbing, brand-name products are increasingly being replaced by store-brand or generic alternatives, which often offer the same quality at a lower price. Discount grocery chains and food pantries have also seen an increase in demand as more households seek ways to keep food on the table without overspending.

Finding Alternatives to Expensive Gym Memberships

While fitness is important, pricey gym memberships and boutique workout classes have become difficult to justify. Many individuals are canceling memberships and turning to alternative ways to stay active, such as home workouts, free fitness apps, outdoor exercise, or community-based recreational programs. Some have found that simply walking, jogging, or following online workout videos can be just as effective as a gym session without the added expense.

Thrift Shopping and Clothing Swaps Replace Retail Purchases

Clothing budgets have been significantly reduced, with many households opting to buy secondhand rather than shop at retail stores. Thrift shops, consignment stores, and clothing swaps have become go-to options for affordable apparel. Many people are also holding off on non-essential purchases altogether, choosing to mend and repurpose existing wardrobe pieces instead of buying new ones.

Scaling Back on Personal Vehicle Ownership

Owning a car comes with a host of expenses, including gas, insurance, maintenance, and registration fees. These costs have pushed some low-income individuals to rethink whether owning a vehicle is feasible. Many are opting for public transportation, carpooling, or biking instead of driving, especially in urban areas where alternatives are more accessible.

Travel and Vacations Become Less Frequent

Travel, once considered a well-deserved break, has now become a luxury that many can no longer afford. Rising airfare, hotel costs, and fuel prices have led families to put vacations on hold, opting for local day trips, staycations, or free community events instead. Many are prioritizing financial stability over leisure travel, focusing on saving rather than spending on getaways.

Delaying Healthcare Visits and Medication Purchases

Healthcare costs remain a significant burden, leading some individuals to delay doctor visits, skip dental checkups, or stretch prescription medications longer than recommended. Without adequate insurance or affordable medical options, many are turning to community clinics, discount prescription programs, and telehealth services as lower-cost alternatives to traditional healthcare.

Seeking Low-Cost Alternatives for Childcare

The rising cost of childcare has forced many families to find alternative solutions. Some parents are adjusting their work schedules to avoid daycare fees, while others rely on relatives, informal babysitting arrangements, or local childcare assistance programs. Shared childcare cooperatives, where parents take turns watching each other’s children, are also becoming more common as a way to cut costs.

Downsizing Housing or Moving in With Family

Housing remains the largest expense for most households, and as rents and mortgage rates climb, some are making significant changes to reduce their living costs. This includes downsizing to smaller homes, moving to lower-cost areas, or sharing housing with family members to split expenses. In more extreme cases, some individuals have had to move into extended-stay motels, shared rentals, or other temporary housing solutions.

Choosing DIY Over Professional Beauty and Grooming Services

Many people now think that going to the salon, getting a manicure, and other personal care services are not worth the money. Instead, people are learning how to do their own hair, nails, and other beauty tasks at home using cheap products. Beauty and self-care are still around, but people are more aware of how much they cost.

Holding Onto Technology Instead of Upgrading

People who are having trouble with money no longer see getting the newest phone, laptop, or gaming console as a top priority. Many people are keeping their devices as long as possible, buying used electronics, or using public computers to get online. The idea of upgrading for convenience has become less important due to financial constraints.

Conclusion

As money gets tighter, families all over the country are having to make tough decisions to stay within their means. Many people are getting used to a new financial reality by cutting out unnecessary costs and coming up with creative ways to save. These cuts may help in the short term, but they also show how hard it is for people with low incomes to make ends meet. The rising cost of living means that many people have to make financial sacrifices every day.

Frequently Asked Questions

Why are low-income families cutting back on everyday expenses?

Rising costs for essentials like food, housing, and healthcare have left many families with less money for discretionary spending. To stay within their means, they’re eliminating or reducing non-essential expenses.

What are some of the first expenses families tend to cut?

Common early cutbacks include:

• Restaurant dining and takeout

• Streaming services and subscription plans

• Gym memberships and fitness classes

• Travel and vacations

How are families adjusting their food spending?

Families are:

• Cooking at home more often

• Buying store-brand or generic groceries instead of brand-name items

• Shopping at discount grocery stores or using food pantries

• Planning meals and buying in bulk to save money

Are people still spending money on entertainment?

Yes, but differently. Many have:

• Canceled or paused paid streaming subscriptions

• Turned to free or ad-supported content

• Rented movies and books from public libraries

• Participated in local, no-cost events for entertainment

What alternatives are people using for fitness and exercise?

Instead of paying for a gym, many are:

• Using free fitness apps or YouTube workouts

• Walking, jogging, or biking in local parks

• Joining community recreation programs

How are people handling clothing costs?

They’re:

• Shopping at thrift stores or consignment shops

• Participating in clothing swaps

• Repairing or repurposing old clothes

• Delaying non-essential clothing purchases

Are people giving up personal vehicles?

In some cases, yes. Due to rising fuel and maintenance costs, some families are switching to:

• Public transit

• Carpooling

• Biking or walking

How are rising costs impacting travel and vacations?

Many households are canceling or postponing travel plans due to:

• Higher airfare and hotel rates

• Increased gas prices

• Budget limitations

Instead, they opt for:

• Staycations

• Day trips

• Free local attractions

How are families managing healthcare costs?

To save money, some are:

• Delaying doctor or dental visits

• Using telehealth services

• Seeking out community clinics or discount prescription programs

• Stretching medications longer than prescribed (though this is risky)

What are families doing about expensive childcare?

Many are:

• Changing work schedules to avoid daycare fees

• Relying on relatives or informal babysitters

• Participating in shared childcare co-ops

• Applying for local childcare assistance programs

Are families changing their living situations?

Yes. To reduce housing costs, families may:

• Downsize to smaller homes

• Move to more affordable neighborhoods

• Live with extended family to share rent or mortgage costs

• Turn to temporary housing like extended-stay motels if necessary

How are people saving on personal care and grooming?

To cut costs, many are:

• Doing their own hair, nails, and grooming at home

• Using inexpensive DIY kits or tutorials

• Reducing the frequency of professional salon visits

Are people still upgrading their technology?

Most are delaying upgrades. Instead, they:

• Keep phones, laptops, and tablets for as long as possible

• Buy refurbished or used devices

• Use public computers or internet access when needed

What does this say about the broader economic picture?

It reflects the growing pressure that inflation and cost-of-living increases are placing on everyday households. These budget changes show how many families are struggling to cover basic needs and must prioritize financial survival over comfort or convenience.

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Reviewed and edited by Albert Fang.

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Article Title: No Longer An Option: 12 Surprising Expenses Poor Americans Are Eliminating

https://fangwallet.com/2025/06/05/rising-living-costs/

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