Middle-Class Families Are Planning To Cut These 5 Expenses First in 2027
KEY TAKEAWAYS
Price increases are becoming a minor or major concern for most people
Big-ticket expenses like long vacations or home improvements may be cut by many families
Families are also likely to cut down on food costs -- both groceries and eating out
Middle-class U.S. families cutting costs in 2027 will likely start with food delivery, unused subscriptions, brand-name groceries, vacations and optional home improvements.
Just over 9 in 10 adults said price increases were a minor or major concern in the Federal Reserve’s latest household well-being survey.
Find Out: The Income Threshold Where Families Finally Start Building Real Wealth
Take the First Step: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Unlike housing, childcare or transportation, these five expenses can be changed without upending a family’s daily life.
1. Food Delivery and Restaurant Meals
Several $20 or $30 restaurant orders per week can add up to hundreds of dollars by the end of the month. Food away from home cost 3.4% more in August 2026 than one year earlier, according to the Bureau of Labor Statistics.
Ashley Morgan, debt and bankruptcy attorney and owner of Ashley F. Morgan Law, PC, expects families to order delivery less frequently, pick up meals themselves and pack more lunches.
“When someone’s housing, insurance, utilities, groceries and car expenses have all increased, eating out is one of the few meaningful expenses that can be reduced relatively quickly,” Morgan said.
Families can keep the meals that matter and cut orders placed mainly for convenience.
2. Forgotten Subscriptions
Streaming services and unused apps add up, especially when the charges renew automatically.
Nathan Astle, certified financial therapist (CFT) at Beyond Finance, said some of the first expenses families cut are “the extra ‘subscriptions’ that families don't recognize are still active.
“This might be a streaming subscription to a platform they rarely use or a printer ink subscription they failed to cancel previously,” Astle added.
A bank or credit card app may already list recurring charges in one place. For instance, apps such as Rocket Money can find subscriptions across linked accounts. Families can also scan a few months of statements for gym memberships, software and streaming services they no longer use.
Cutting $75 in monthly subscriptions would free up $900 over a year.
3. Brand-Name Groceries
Joel Goldstein, president of Mr. Checkout Distributors, expects more shoppers to replace name-brand packaged snacks and drinks with store brands, smaller packages or fewer purchases. Goldstein works with independent grocery, pharmacy and convenience stores.
He said families generally trade down before eliminating treats completely. They may also make one planned grocery trip rather than several expensive stops at convenience stores.
The smallest package is not always the least expensive choice. A larger size may cost less per unit, provided the household will use it.
4. Big Vacations
Middle-class families may still travel in 2027, but take fewer or shorter trips, drive instead of fly or stay closer to home.
Only 45% of Americans had made summer travel plans in 2026, the lowest share in six years, according to a Deloitte survey. Among people earning $100,000 to $199,000, the share fell to 37% from 45% a year earlier.
Families can also set fare alerts through Google Flights or compare vacation packages through Costco Travel and Travelzoo. Before booking a package, compare its total price with the cost of buying transportation and lodging separately.
5. Optional Home Improvements
A dated kitchen can wait. A leaking roof cannot.
Year-over-year growth in home improvement and repair spending is projected to slow to 0.5% by the second quarter of 2027, according to the Harvard Joint Center for Housing Studies.
Families may postpone cosmetic remodels, update one room instead of several or repair fixtures rather than replace them. But delaying plumbing, electrical or structural repairs can lead to a larger bill later.
Bonus Tip: Don’t Skimp on Insurance
Insurance may look like another monthly expense to reduce, but cutting coverage can shift more financial risk to the household.
Morgan said comparing policies makes sense but cautioned against choosing coverage or a deductible the family could not afford after an accident. Saving $50 per month will not help much if a $2,000 deductible prevents the family from repairing the car it relies on for work.
The best cuts lower spending without exposing the family to a much larger bill later.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: