The economy’s throwing some bad vibes, prompting people to start prepping their finances in anticipation of a recession.
That’s according to a survey released Wednesday by personal-finance site Bankrate, which commissioned YouGov to poll 2,390 adults between July 27 and 29. The survey found that 7 in 10 adults are worried about the possibility of a recession by the end of next year. Nearly 29% are “very worried” about a recession.
A majority say they’re not ready for a downturn: 41% of Americans say they feel unprepared for a recession if it does happen by the end of next year, with 17% adding that they’re not prepared at all.
Still, Americans say they are doing their best to take steps in anticipation of a downturn.
This includes scaling back spending on discretionary items, saving for more emergencies, paying off their credit-card debt, adding to their retirement stash, as well either adding an additional income stream, or finding more stable sources of income.
Some respondents already believe that the recession is here, according to Mark Hamrick, senior economic analyst at Bankrate.
“With about half of consumers saying they’re cutting back on discretionary purchases, that alone weighs on economic activity, making a contraction more likely,” Hamrick said in a statement.
And yet 26% are “doing nothing” to prepare.
Additionally, 7 in 10 respondents also believed that inflation will not have gotten any better next year. Some 51% said they believe the cost of living will actually rise, and 20% said they believe it will be about the same as now.
Who’s the least prepared for a recession?
According to Bankrate, some groups are reporting that they feel unprepared for a recession.
These include women, minorities, those who don’t have a four-year college degree, lower earners, and those aged between 18 and 25 (that is, Generation Z) are more likely to feel unprepared for a recession.
Lower earners refers to those who make less than $50,000 a year.
However, many more are taking action. “Fortunately, we’re seeing some constructive developments including saving more for retirement and for emergencies and paying down credit-card debt,” Hamrick added.
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