Category Saving

As the Federal Reserve keeps interest rates high and the cost of living remains elevated, many Americans are changing how they spend money. Instead of buying things out of habit or convenience, more people are becoming purposeful with their spending. High-yield savings accounts—offering over 4% APY—are encouraging people to save rather than shop. One popular trend gaining traction is the “No-Buy Challenge.” It’s a 31-day commitment where people avoid all nonessential spending to reset their money habits. This approach helps people become more aware of their financial choices, build savings, and reduce unnecessary expenses during uncertain economic times.

In 2025, mortgage rates in the U.S. have slightly dropped to an average of 6.58% for a 30-year fixed loan. While this is lower than the recent peak, it’s still much higher than the record-low rates during the pandemic. Because of this, many homeowners are choosing to stay in their current homes instead of selling and taking on a new, more expensive mortgage—this situation is often called the “golden handcuffs.” As a result, people are focusing more on saving money, investing wisely, and paying down other debts. Buyers are also feeling the pressure of high housing costs and are encouraged to shop around with different lenders. Doing so can save them $600 to $1,200 a year, which helps ease the burden of rising prices in other areas.

Gen Z, the generation born roughly between the mid-1990s and early 2010s, is changing what it means to be financially smart. Facing high living costs, slow wage growth, and an uncertain economy, many young adults are choosing to live simply and save money on purpose—not just out of necessity. For them, being frugal isn’t about being cheap; it’s about spending with intention. Instead of showing off with flashy purchases, they value minimalism, sustainability, and financial security. Gen Z is more likely to skip luxury items and expensive outings in favor of saving for long-term goals, like owning a home or building a safety net. For this generation, living within their means is not a sacrifice but a statement of values.

The 2025 Social Security Trustees Report warns that the program’s main trust fund could run out of money by 2033, unless Congress takes action. If nothing is done, retirees will only receive about 77% of their expected Social Security benefits. This means someone receiving $2,000 a month could see their check drop to around $1,540. The cut would hit millions of seniors hard, especially those who rely heavily on Social Security as their main income. With inflation, rising healthcare costs, and an uncertain economy, future retirees may need to plan now by saving more, delaying retirement, or looking into other income sources to stay financially secure.

As of August 2025, high-yield savings accounts are offering interest rates as high as 5.00% APY, making them a smart choice for people looking to grow their money safely. These accounts are especially appealing during times of economic uncertainty, like now, when inflation is still a concern and the Federal Reserve has paused changing interest rates. Since most regular savings accounts pay much less interest, switching to a high-yield option—often available through online banks or credit unions—can help people earn more without taking on extra risk. With the economy in a fragile state, this is a good time for savers to take advantage of these high rates to strengthen their financial future.

During times of economic uncertainty—like high inflation, unstable stock markets, and fears of recession—it can be hard to stick to your financial goals. Many people feel unprepared to deal with rising prices and unpredictable changes in the economy. Experts say the best way to stay on track is to stay flexible. Instead of setting strict goals, like retiring at a certain age, it’s smarter to create flexible savings targets that you check on regularly, such as every few months. That way, you can make adjustments when needed and keep moving forward, even when the economy shifts.