At a Glance
- Newlyweds with $100k+ income still feel stretched.
- They’ve shifted to Aldi and cut eating out to save.
- Rising food, housing, and energy costs are squeezing many families.
- Why it matters: It shows how inflation forces even higher-earning couples to re-evaluate spending.
Couples earning over $100k are feeling the pinch, as rising prices for food, housing, and energy push families to cut back on dining out and shift to discount grocers like Aldi.
Cost-Cutting Strategies
Zwier and Martinez now shop exclusively at Aldi, citing lower prices than other stores. They also stopped buying beef after record-high costs this year.
- Switch to Aldi for groceries
- Cut back on eating out
- Eliminate high-priced items like beef
Frank Martinez stated:
> “Maybe once every three months now, we’ll go out. Used to be at least date night here and there. But that’s something we’re now sacrificing because everything is just too expensive.”
Brittany Zwier added:
> “We’re using less, and it costs more.”
The K-Shaped Economy
Economists describe a K-shaped recovery where wealthier households thrive while many others struggle. Heather Long, chief economist at Navy Federal Credit Union, explains that the top of the K sees rising incomes and spending.
Heather Long stated:
> “The K-shape economy means that some Americans, usually the wealthiest Americans, are doing just fine. They’re in the top of the K. Their incomes are rising. Their spending is rising.”
Energy and Housing Pressures
Electricity bills have jumped 6.9% last year, and winter heating costs could average $995, up $84 from 2024. Mark Wolfe, executive director of NEADA, notes the impact on struggling families.
Mark Wolfe stated:
> “These increases may not sound dramatic to higher-income households. But for families already struggling, they are devastating.”
| Metric | 2022 | 2023 |
|---|---|---|
| Electricity cost increase | 3.5% | 6.9% |
| Average winter heating spend | $911 | $995 |
Aldi’s Growth and Consumer Shift
Aldi has expanded from 1,230 stores in 2012 to about 2,400 in 2023, and plans 800 new stores by 2028. An Aldi spokesperson said in a statement to News Of Los Angeles that shoppers across income levels are turning to Aldi for lower prices.
- 1,230 stores (2012)
- ~2,400 stores (2023)
- 800 new stores planned (by 2028)
Market Implications
High-income households now drive 49.2% of consumer spending. Companies like Ford and GM are seeing higher sales of premium SUVs, while airlines launch luxury upgrades.
| Top 10% spend share | 2024 |
|---|---|
| Consumer spending share | 49.2% |
Key Takeaways
- Even well-paid couples are reshaping budgets due to inflation.
- The K-shaped economy leaves many behind.
- Discount grocers like Aldi are benefiting from shifting consumer habits.
The inflation-driven shift in spending shows that even higher-earning families are tightening belts, underscoring a broader change in American consumer behavior.
