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Top Trends of 2011: Downsized American Dreams

electionAmericans’ are increasingly willing to accept limitations in life, including changing their spending and savings habits as well as distinguishing needs from wants. The downside: many are also reducing their financial donations.

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A consistent theme from Barna Group’s research this year is Americans’ growing acceptance of limitations. Compared to the experience of economic surplus of recent decades, residents are living within a redefined American dream. For many, this includes lowered expectations, rethinking spending habits, and relearning savings.

One reason for their modest outlook on life is that three-quarters of adults claim to have been personally affected by the economic downturn. Another reason: Americans have come to accept that the economy is not recovering anytime soon. They are settling in for the long haul. Seven out of 10 Americans believe it will be two or more years and nearly half say it will take three years or longer. One out of 17 Americans now believes the economy will never fully recover, up from one in 50 two years ago.

One of the unfortunate consequences of these changes is a reduction in charitable giving. Three out of 10 adults have reduced their giving to churches and four out of 10 have downgraded their giving to non-profits. One of the measures of generosity is tithing, or giving 10% or more of one’s income. The tithing indicator, too, has dropped from 7% to 4% of all Americans. The patterns of giving and generosity suggest a tough year ahead for non-profit and church leaders.

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Barna Group
Barna Group
Barna Group