Half of all consumers and 64% of Millennials report that price increases due to inflation are affecting their financial decisions as well as their mental health.

This information comes from

a survey of 1,000 U.S. adults

conducted by marketing solutions company Vericast, which also found that 70% of respondents expressed decreased confidence in their ability to pay their bills on time and afford essential purchases like groceries.

Here’s a further breakdown of the research from

Jerry

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Inflation is causing strategic changes in spending habits

In general, consumers are spending their money more carefully in order to alleviate stress brought on by increased prices due to inflation. Those surveyed reported reducing or eliminating spending across categories and more intentionally seeking out discounts.

Companies are similarly affected by inflation, as reflected in increased operating costs, hiring challenges, and prolonged supply chain issues. Grim as it may sound, these challenges also represent an opportunity for brands to engage with consumers in new ways.

“As the dollar shrinks, consumers are getting smarter with money. Brands can build credibility and stand out among competitors by offering value in the form of discounts and deals, which can help consumers feel more in control of their mental, physical, and financial health given the fatigue of the past two years,” said Dave Cesaro, executive director of client strategy at Vericast.

MORE:

Thanks to inflation, more than half of Americans can’t afford monthly expenses without a credit card

Consumers are cutting non-essential spending and choosing store brands

The survey paints a picture of consumers spending less money more carefully.

Respondents said they’d limit spending on clothing and accessories above all, followed by groceries.

Over 7 out of 10 admitted to buying more products from store brands or private label brands to save money—77% of millennials and 76% of Gen Xers surveyed said they’re employing this strategy.

Despite this, many remain loyal to their stores of choice. Around 64% said they haven’t changed grocery stores in the last six months. (I love Target too, man.)

Buying less clothing and switching to store brands might not seem significant, but inflation is guiding decisions regarding health care, too. Nearly 3 in 10 respondents said inflation is impacting their decision to seek out dental health care.

Restaurants are especially at risk

The hospitality industry faces significant risk when consumers find ways to limit spending, as product costs lead to higher menu prices and dining out is seen as a luxury. Over 6 in 10 respondents said they’ve eaten at restaurants or ordered takeout less frequently in the last six months, while 27% said their dining habits remain unchanged.

MORE:

11 car insurance hacks to save you money

Shoppers are particularly motivated by discounts

This research suggests brands should consider strategically targeted discounts—88% of respondents said a coupon could motivate them to try a new brand or store.

In fact, two of the top three ways respondents said they’re saving money involve discounts:

31% said they’re limiting non-essential spending

13% said they’re looking for more coupons or discounts

12% said they're shopping in the sale section

Though car owners have no choice but to pay for

car insurance

, another great way to reduce everyday expenses is to shop for a better-priced policy with an app like

Jerry.

Signing up takes about 45 seconds, then Jerry compares plans from over 50 top providers to find users the best price for the coverage they need. Jerry saves users an average of over $800 a year.

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