Category Saving

As inflation and high living costs continue to impact everyday life, Gen Z is changing how people think about money. Instead of spending to show off wealth, many in this generation are choosing to save, budget carefully, and live within their means. Growing up during economic uncertainty, they've learned the importance of financial literacy and are using social media to talk openly about saving, investing, and avoiding debt. Saving money has become more than just a smart habit—it's now a part of their identity and lifestyle. For Gen Z, being financially responsible is seen as cool, practical, and even a way to support their values, like sustainability and minimalism.

In 2025, many Americans are changing jobs more than ever, which has led to a growing problem with forgotten retirement savings. When workers leave behind small 401(k) balances—usually under $7,000—their former employers often move the money into something called a Safe Harbor IRA. These accounts are supposed to be a temporary place to hold the funds, but they often come with high fees and earn very little interest. As a result, the money doesn't grow like it should and can even shrink over time. Experts are now calling these accounts "Junk IRAs" because they’re hurting more than helping. According to recent research, over $28 billion is sitting in these low-performing accounts, putting many people’s futures at financial risk without them even realizing it.

In today’s fast-paced world, families often struggle to manage their money while balancing busy schedules and rising costs. To help with this, financial experts recommend a simple approach called the 20:30:50 rule. This rule breaks down your income into three parts: 20% goes into savings and investments like SIPs (Systematic Investment Plans), PPF (Public Provident Fund), and NPS (National Pension System); 30% is saved for big future goals like buying a home or paying for your child’s education; and 50% is used for everyday expenses like groceries, rent, and bills. Many families also set up automatic payments from their paycheck so they save first before spending. This strategy helps build wealth over time, even with small monthly savings, and takes the stress out of money management.

In 2025, the Federal Reserve has started lowering interest rates to help support the economy as inflation slows down. After leaving rates steady for months, the Fed cut rates in September and may lower them again in the coming months. This matters for savers because when the Fed lowers rates, banks usually follow by offering lower returns on savings products like certificates of deposit (CDs). Right now, CD rates are still relatively high—some offer up to 4.35% annual percentage yield (APY). That means if you’re looking to grow your savings safely, this could be a smart time to lock in a good CD rate before they drop further.

Frugality is becoming popular again, especially among younger people who want to make smarter choices with their money. Instead of spending just to keep up with trends, many are turning to thrift stores, estate sales, and DIY lifestyles that focus on saving and reusing. Social media is also playing a big role, with influencers sharing tips on how to live well without overspending. Experts say this new frugal mindset isn't about being cheap—it's about being thoughtful with money, choosing quality over quantity, and focusing on long-term goals. This shift shows a growing desire for financial stability and a simpler, more meaningful way of living.

In a recent statement, personal finance expert Suze Orman warned that $2 million may no longer be enough for a comfortable retirement in 2025. She argues that due to rising inflation, increased healthcare costs, and people living longer, retirees need more savings than ever before. While a 2024 study by Northwestern Mutual found most Americans think $1.46 million is enough, Orman believes that number falls short of what’s truly needed. Her message comes at a time when many are already struggling with higher prices and uncertain economic conditions. Orman’s advice challenges people to rethink how much they need to save for the future.