CNN Money's Where Americans Will (and Won't) Cut Back

Though consumer confidence has recently nosedived, inflation is on the rise, and the economy is struggling, consumers, though they are cutting back some on spending, refuse to give up certain expenditures. 

Nine out of 10 Americans said they cut back expenses or discretionary spending somewhat because of the current economy, according to a study performed by market research firm GfK Roper Consulting.

Only 11% of Americans believed it was a good time to buy things they want or need, a drop of only 5% a year earlier.

Inflationary concerns, U.S. dependence on oil and rising unemployment spanned all age brackets and income groups, according to vice president of GfK Roper Consulting, Jon Berry.

Some people, however, are harder hit than others. Because of heavy dependence on driving, less affluent consumers living in rural areas and parents with underage children living at home were among the most impacted by high gas prices.

Generation X (Americans between ages 28 and 43) are also struggling especially hard. They are particularly vulnerable because they are more likely to have young children, fall mostly within the middle class, and may have recently purchased a home or are currently in the market for one.

Though consumers are significantly cutting back, they are still finding ways to maintain their quality of life, Berry explained. Even in tougher economic times, Americans demonstrate a strong "reluctance to give up on everyday pleasures."

Many people, however, are forced to prioritize and scale back spending somewhere. "There are clear priorities with dining out, out-of-the-home entertainment, clothes, vacations and buying lunch are the first to be cut," said Berry.

This does not mean, however, there's no fun to be had. Many Americans are staying on the couch instead of driving. 50% of Americans plan to buy an HD or flat-panel TV in the next year, according to the study, with little difference between those who are hardest hit by the downturn and those who are not. Satellite and cable TV subscriptions are also far down on the list of cutbacks.

Despite the expense, consumers also refuse to completely give up vacationing and travel. 59% of Americans plan to travel more than 100 miles in the next six months - only slightly lower than the 61% average of recent years. Consumers have, however, slightly changed their travel plans. To cope with rising fuel costs, many people opt for trips closer to home.

To combat rising food prices, consumers in all income groups are using coupons to keep buying the items they want at a price they can still afford. They may also be eating out less, but they are investing more in growing their own greens and dining well at home. Gardening is having a banner year, according to Berry.

*GfK Roper Consulting's results were from multiple surveys conducted between Dec. 2007 and June 2008 and based on a total of 20,000 interviews with consumers aged 18 and older.