High earners are feeling the pain of wealth creep—and it’s leading to a new trade-off in their spending

A growing number of affluent consumers appear to be making a new kind of financial trade-off: skimping on everyday purchases while preserving room in their budgets for travel, concerts, restaurants, and other experiences. It’s selective spending: bargain-hunting for groceries or household goods and then really choosing to drop a pretty penny on a five-star hotel or a Michelin restaurant.

Erin O’Connor-Bell, director of financial planning and client experience at Aprio Wealth Management, said she sees that behavior as part of a broader shift in how consumers think about value. O’Connor-Bell, who specializes in shifting behavior and mindsets around finances, leads Aprio’s financial planning department and focuses on helping clients align their financial lives with their goals and values.

“Individuals with disposable income may look for lower prices amid rising costs, but are also more likely to spend money on experiences,” O’Connor-Bell told Fortune. “So they are okay with spending money on special trips or concerts or meals. And I think that suggests that this group may make financial trade-offs in certain areas, but value those experience-based expenditures.”

The high earner buying discount groceries may be the same person booking a five-star hotel, not because they’re financially confused, but because they’ve decided what they value in their spending.

For some consumers, a grocery store is just a grocery store. If the same pasta, cheese, paper towels, or pantry staples can be found at a lower price, the savings feel rational. (After all, it’s one banana, why should it cost $10?). But a birthday dinner, a long-awaited trip, or a concert with friends may offer something harder for these consumers to put a price tag on: social connection, pleasure, or a sense of well-being.

“Those experiences, those trade-offs, are still worth it to them,” O’Connor-Bell said. “So they’re still willing to go out for an expensive meal, if it’s fostering social connection and giving them that sense of well-being that maybe they don’t get from the grocery store that they choose.”

What do you value?

However, the ability to treat thrift as a strategy is not universal. Terrance Williams of TruStage, a mutual insurance company geared towards middle-market consumers (defined as households making between $55,000 to $160,000), said the insurer is seeing middle-market consumers make harder trade-offs as grocery, gas, housing, and other costs squeeze household budgets. Some customers, he said, are calling to lower premiums, restructure coverage, or cancel policies altogether.

“What we’re seeing is that consumers are now having to make tough decisions,” Williams told Fortune. “They’re tightening their budgets and having to make decisions about what do I keep and what do I continue to lean into?” For some households, he added, the choice can come down to essentials: “Do I pay for my cell phone because I have to have that? Or do I pay for my life insurance policy?”

For high earners, buying cheaper groceries may be less about financial stress and more about redirecting money toward the experiences or comforts they value most. A person may drive an aging car, comparison-shop for groceries, or brew coffee at home while still spending thousands on travel. But O’Connor-Bell said those decisions often reflect personal priorities rather than strict budgeting.

“You could still be spending money on that special trip and be driving a 20-year-old vehicle,” she said. “It kind of leads back to individual preferences and what they value.”

Rising prices have made even comfortable households more aware of costs. Inflation rose a staggering 1%, hitting grocery items the hardest: coffee, non-alcoholic beverages, and other food items were among the most affected. But some of these financial decisions, O’Connor-Bell said, are often shaped by one’s upbringing and emotions.

“This is about personal experiences and your history, your feelings towards money,” she said. “It’s definitely much deeper than just running the numbers.”

That can be especially true for people whose current income differs sharply from the household they grew up in. (As referenced above, Keke Palmer is a prime example: her parents were making $40,000 when she got her first big TV role). Some may find it hard to spend even when they can afford to. Others may need help understanding where their money is going and whether their spending lines up with their long-term goals.

O’Connor-Bell said her role is not to tell clients which purchases are worthy, but to help them understand the trade-offs.

“It is my job to help people understand what their choices impact long-term or short-term,” she said. “I have clients that are just like you who say, I’m going to save that money. I’m not going to buy coffee anymore. I can get my own beans and make my own coffee in the morning. And that is a trade-off that they’re consciously making. The next question is, what is that money then going towards?”