As another presidential election season winds to a close, voters are keeping a close eye on their wallets.
One in 10 Americans have made financial decisions because of the 2024 presidential election, or in anticipation of the outcome, according to a survey by Edelman Financial Engines. The investment advisory firm polled 3,008 people age 30 and older.
Here are five money moves folks are making ahead of — and because of — November’s election.
1. Cut spending/became more frugal
Share of respondents who’ve made election-influenced money moves who made this specific move in 2024: 40%
Inflation has surged through the economy over the past few years, pushing more people to find ways to save so they can simply make ends meet. It appears that the uncertainty surrounding the election has caused voters to become even more careful about how much they spend.
Of course, it’s possible to take cost-cutting too far. So, watch out for the “8 Signs You’ve Gone From Frugal to Cheap.”
2. Postponed a major purchase
Share of respondents who’ve made election-influenced money moves who made this specific move in 2024: 37%
When you are worried about the future, it can feel foolhardy to plunk down a pile of cash on a big purchase. More than one-third of Americans who are changing habits because of the election are taking a wait-and-see approach before making a major purchase.
That is not necessarily a bad thing, because it gives them the time to think through whether the purchase really makes sense. It might even help them avoid one of the “17 Purchases That People Almost Always Regret.”
3. Increased savings
Share of respondents who’ve made election-influenced money moves who made this specific move in 2024: 32%
Many Americans say they are boosting their efforts to save because of the election. Most of them would do well to continue the practice into 2025 and beyond, regardless of who wins.
If you are struggling to hang on to your cash, check out some of the “12 Ways to Save More Money, Starting Now.”
4. Put money in an investment that might benefit
Share of respondents who’ve made election-influenced money moves who made this specific move in 2024: 24%
Buying stocks based on who might win the election is not the best investing strategy. History shows there is often a big gap between what people expect might happen under a given set of circumstances and what actually occurs.
Instead, educate yourself about the basics of investing so you can make smarter decisions that are more likely to pay off independent of whatever happens at the voting booth.
To get started, check out Money Talks News founder Stacy Johnson’s thoughts in the podcast “The Top 4 Investing Blunders and How to Avoid Them.”
5. Pulled money out of an investment that might suffer
Share of respondents who’ve made election-influenced money moves who made this specific move in 2024: 23%
Pulling money out of an investment because of who might win an election is also likely a big mistake.
Retired financial advisor Paul Merriman likes to tell the story about a client who came in after a presidential election and bellowed, “Sell everything!”
The client was worried that the new president would ruin the country and send the stock market into a tailspin.
The year was 1992, and the new president — Bill Clinton — eventually ended up presiding over a booming economy and one of the greatest bull markets in history.
Incidentally, the story has a happy ending: Merriman succeeded in convincing his client to hang tight, and the client benefitted from the boom.
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