US Consumer Confidence Declines in November 6.8% to 88.7% (The Penny-Wise Alternatives)

How confident are you feeling these days? According to the Conference Board, consumer confidence has been declining. That naturally raises some concerns heading into the holidays, since lower confidence can translate into lower spending. Of course, we never really know the impact until the sales numbers come in, but the possibility is there. Consumer confidence is often described as a mid-term economic indicator—at least from what I’ve read.

Jared saved up $4
in pennies that he has been
stuffing into a pine tree. He decided
to spend $2 on wood, propane and food,
$1 on fishing and hunting supplies for
his guide business and $1 on
eating out (Try dowtown
Escanaba or Gladstone)
and high end flannel fashion
 (Today is Black Friday Sales! )
Jared is going to see what happens
during Black Friday as
an economic indicator
just to see if his guide business
will pick up this year.
He eans a living from consumers
and their sentiment.

A mid-term influence might occur because it takes time for confidence to erode or recover, and only then does it begin to affect people’s choices, which eventually influences broader economic growth. If my understanding is correct, roughly 70% to 75% of the U.S. economy is tied to consumer spending (You can look up the exact number). In many ways, we’re a society built on consumption.

Naturally, many other factors affect whether consumer confidence rises or falls, but the index is essentially a measure of sentiment. Most of us feel the pressure of tight budgets and limited financial flexibility, so it makes sense that confidence is tied to a person’s ability to maintain their lifestyle.

These are just some simple thoughts—people’s financial lives are always more complex in practice. Still, here are a few ideas that may help during times of uncertainty:

1. Create a budget: It’s difficult to understand your spending and income without tracking them. You don’t have to record every detail, but I personally find it helpful, especially for hobbies or business-related expenses.

2. Find alternatives and streamline: The holidays can be a good time to reflect on what truly matters. Previous generations lived full lives without many of the things we now consider essential. Focusing on what brings genuine joy—and cutting what doesn’t—can reveal meaningful savings.

3. Start a small business: You might consider starting a home-based side business. Many people turn their hobbies into profitable ventures. Think about what you’re good at, what interests you, what it will cost to start, and whether people will want to buy it (Don't expect to be rich as a writer or artist unless your the rare exception!).

4. Invest: Building financial stability often involves learning to invest. Some people inherit wealth, but most financially strong individuals develop investment knowledge over time. Online platforms now make it easy to start with small amounts, even $100 at a time. I’d like to continue doing that myself, and I’m also thinking about purchasing land in the future.

Conference Board US Consumer Confidence Declines in November

Consider a study on the relationship between confidence and the economy.

Confidence and the Impact on Economy