Category Basics

As of late 2025, inflation in the United States is still a concern despite claims from leaders that the worst is over. President Trump has said that inflation is under control, pointing to lower grocery and mortgage costs and the recent interest rate cut by the Federal Reserve. However, inflation remains above the Fed’s target, with consumer prices rising by 2.9% in August. Prices have gone up in three of the past four months, showing that rising costs are still affecting everyday life. New tariffs on imported goods, such as furniture, are making things more expensive, and high prices at the gas pump and grocery store remain a problem for many Americans. These economic issues are expected to play a big role in the upcoming 2026 elections.

In recent years, especially during times of economic uncertainty, many Americans have changed the way they think about and use money. Instead of spending to show off or buy the latest trends, people—especially Millennials and Gen Z—are making smarter and more thoughtful choices with their cash. Even though many feel worried about things like rising living costs and unstable jobs, they're not completely cutting back on spending. Instead, they're focusing on getting value for their money and making purchases that align with their goals and long-term financial security. This new trend, known as "conscious spending," shows that people are learning how to deal with tough financial times by being more careful and intentional with their money.

In October 2025, consumer confidence in the U.S. economy dropped to one of its lowest points since 1952. This decline reflects growing public concern over high inflation, slow wage growth, and fewer promising job opportunities. According to a survey by the University of Michigan, people are feeling more uncertain about their personal finances and the country’s economic future. Rising prices on everyday necessities, like food and gas, as well as on larger items like appliances or cars, are making it harder for many families to stay financially stable. A recent government shutdown has only made Americans more worried about what’s ahead, even though most people haven't yet changed their spending habits significantly.

In 2025, many Americans are cutting back on everyday purchases due to rising prices and worries about a possible recession. According to recent surveys, over 60% of people in the U.S. are concerned about their ability to afford basic needs. As a result, smart consumers are skipping items like pre-packaged foods, bottled drinks, and branded cleaning supplies. Instead, they’re getting creative—making things like bread, dressings, and even cleaners at home to save money. This change isn't just about spending less; it's also about feeling more in control during uncertain economic times. Global tensions, like those between the U.S. and China, are making people think more carefully about how and where they spend their money.

In October 2025, U.S. consumer sentiment stayed mostly steady, with only a tiny drop from September, according to the University of Michigan. The overall reading was 55.0, which was better than economists expected. This shows that while people feel a bit better about their current financial situation, they’re still very worried about the future. High inflation and concerns about job security are the top issues on most people’s minds. The mixed report—rising current conditions but falling expectations—reflects how Americans feel stuck: doing okay now, but unsure and anxious about what comes next.

As the U.S. government shutdown stretches into its tenth day, many Americans are starting to feel the effects on their personal finances. With lawmakers in Washington stuck in a standoff over budget issues, key government services are on hold. One major problem is the lack of official economic data, which makes it hard for people to make smart choices about saving, investing, or spending money. Even more worrying is the risk that programs like Social Security could be delayed if the shutdown continues. While these payments usually go out on time during past shutdowns, longer delays and funding problems could put vulnerable groups—like retirees and people with disabilities—at risk. The longer the gridlock lasts, the more uncertainty people face about their financial stability.