More Americans are adjusting their savings habits based on their feelings about the economy, CNBC reported. The trend is dubbed “vibe-based budgeting,” according to a new survey by Intuit Credit Karma. The poll found that 44% are altering financial decisions based on emotional cues, despite no actual change in their financial circumstances. Younger generations lead the shift, with 56% of Gen Z and 57% of millennials reporting emotional budgeting. Concerns over rising prices, market volatility, and fears of a recession are prompting many to shift from “revenge spending” to “revenge saving.” Experts caution that while saving is a smart move, emotion-driven habits can backfire. Financial advisors recommend taking intentional steps, such as reviewing income and expenses, adopting a reverse budgeting approach, and automating transfers to savings and investment accounts.
