What Recession? Americans on a Spending Spree - Other News


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » What Recession? Americans on a Spending Spree

What Recession? Americans on a Spending Spree

The content is accurate at the time of publication and is subject to change.

According to the Chase Freedom Lifestyle Index, Americans are amping up spending in many leisure and luxury categories, such as vacations, gifts, theme park vacations, and movies. The index studies Chase card holders and how they spend their money and since a high percentage of Americans are Chase cardholders, we can look at their spending habits as representative of a large slice of the population.

Perhaps weary of being cautious and penny-pinching throughout the recent financial crisis, spending was higher in almost all recreational categories during the first quarter of 2012, compared with the same time period in 2011. Spending on gift items like jewelry was higher, and also on flowers – probably due to holidays like Valentine`s Day and Mother`s Day – and Chase card holders also spent more on electronics from during May, with the category jumping in spending by 21 percent between April and May.

Burning a Hole in Their Pockets

Let`s see what Chase cardholders spent money on during the first quarter of 2012, compared to what they spent in 2011:

  • Twenty-one percent increase in spending at theme parks
  • Twenty-four percent increase in spending at movie theaters
  • Seven percent increase in spending at ski resorts, golf courses and campgrounds

Gift-giving can be measured by the jump in spending between April and May 2011, the season of graduations and Mother`s Day, when flower-buying doubled, jewelry spending leapt up by 28 percent, and electronic expenditures were up by 21 percent.

Spending Fueled by Rewards Programs

While people have their pocketbooks out, they can use credit cards to maximize their money, getting extra bang from a buck by utilizing rewards programs like those offered by the Chase Freedom card, which gives cash back in rotating categories, similar to the rewards programs offered by Discover Card.

The rewards offered by the Chase Freedom card this spring and summer are in the following categories:

  • Movies and groceries – cardholders can get five percent cash back on all purchases made at grocery stores and movie theaters through June 30, up to a maximum of $75 back when they spend $1500 in these categories.
  • Floral merchants – selected flower sellers from the Chase Ultimate Rewards program will give extra reward points to customers purchasing flowers using their Chase Freedom credit cards. Partners include ProFlowers, KaBloom, and 1-800-Flowers.com. Eligible purchases will get up to 15 bonus points per dollar spent.
  • Electronics – When buying electronics on Sundays, Chase card holders can get the best bargains. Card holders should look at the Chase Ultimate Rewards site for more details.
  • Gas Stations and Restaurants – From July through September, peak road-trip season, the cash back reward for Chase Freedom card holders will be five percent for up to $1,500 in spending.
  • Hotels and Airlines – Also June through September, Chase offers extra cash back on purchases from airlines and hotels, so customers can get the most back from their vacation plans.
  • Best Buy and Kohl`s – Looking past the summer to the back-to-school season, Chase Freedom members can get five percent cash back at Best Buy and Kohl`s, where they`ll find everything from school supplies to first-day-of-school outfits.

The attitude of consumers seems to be that if you`ve got it, you may as well spend it. While you`ve spending it, you may as well use a credit card to get cash back or other rewards. The good news will be if this upward trend in spending continues through the rest of the year. The best news will be if this upward trend in spending continues through the rest of the year.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Gas Prices Down, Dining and Shopping Are Up
Gas Prices Down, Dining and Shopping Are Up

Posted: July 25, 2016

With gas prices down Americas are saving money at the pump, which not only translates into people driving more, but it also means that they are spending more to eat out and shop, according to a new study by the JPMorgan Chase Institute. Continue reading

LivingSocial Users Can Chase Rewards With New Visa Card

Posted: May 03, 2012

LivingSocial and Chase are preparing to debut the LivingSocial Rewards Visa Card, which will give LivingSocial users the opportunity to earn rewards and get access to special perks and exclusive offers. Continue reading

AARP and Chase Introduce New Rewards Credit Card
AARP and Chase Introduce New Rewards Credit Card

Posted: May 10, 2013

A new credit offering from Chase gives AARP members 3% cash back at gas stations and restaurants and 1% cash back on all other purchases. The card has no annual fee and cardholders can earn unlimited cash back. Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Introducing the New Citi Rewards+ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap
For Excellent, Good Credit
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days
For Good/Excellent Credit
See Rates & Fees
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!