How Household Budgets Have Changed Since 9/11
September 09, 2015
September 11th is quickly approaching and we will never forget what happened on this day 14 years ago. Much in our country has changed and household spending and budgets has as well. There are three key areas where our household budgets have experienced financial change since 9/11.
The Office of Travel and Tourism Industries reported that there was a decline after 9/11 in the number of Americans who traveled internationally. International tourism to America also fell for three years after 2001. Then in 2004, it began to increase again, surpassing pre-2001 numbers in 2007. Also you may have thought that air travel has become more expensive, however it is just the opposite. According to data from the Bureau of Transportation Statistics, the price has actually gone down. The average domestic fare was at $420 in 2001 and as of 2014 the average cost was $379.
Charities and Scholarships
After the attacks, roughly $1.4 billion was donated to charities dedicated to 9/11 victims and families. SchoolSoup, a college scholarships website, reported in 2014 that more than $40 billion in college scholarships are available for victims of 9/11.
The Post-9/11 G.I. Bill, which provides educational funding to soldiers, was passed, as well as the James Zadroga 9/11 Health and Compensation Act of 2010, allowing $4.2 billion for the healthcare of people who worked at Ground Zero during and after the attacks.
In 2008, as the financial crisis gained force, American households cut back on their spending by the largest amount since the 2001 terrorist attacks according the Commerce Department. Consumer spending accounts for 70 percent of U.S. economic activity. Even today, consumer confidence and spending patterns still remain low.
For help establishing your budget, please call our office at 763-231-9510 to schedule a time to meet with one of our Wealth Advisors.