Category Saving

Inflation is causing people, even those in the upper-middle class, to change how they spend money. As prices rise, many are looking for cheaper options to save where they can. For example, instead of going to expensive restaurants, more people are choosing budget-friendly meals like happy hour deals. At the grocery store, shoppers are buying store brands instead of more expensive name brands. These spending habits show that people are being more careful with their money during tough economic times. Even for big purchases, like plane tickets or cars, people are choosing less expensive options or holding off on buying new things altogether. This shows a shift in priorities as people focus more on value and savings.

Almost half of Americans say they don’t feel ready for retirement, according to a new survey by Allianz Life. Many are worried about either spending too much too soon or not spending enough to truly enjoy their retirement years. Even though the stock market is doing fairly well, concerns remain about a possible recession, inflation, high interest rates, and political issues like budget debates and threats of a government shutdown. Financial experts say it’s more important than ever to make smart money choices—like diversifying your investments and planning different sources of income—so you can retire comfortably and avoid financial stress later on.

With the Federal Reserve cutting interest rates throughout 2024 and 2025, savings account and CD (certificate of deposit) rates have started to fall from the high levels seen last year. While CD rates once offered some of the best returns in over a decade, they are now sliding lower as more rate cuts are expected. However, some banks are still offering CDs with annual percentage yields (APYs) around 4.35%. For savers, this may be one of the last chances to lock in a strong return on their cash before those rates drop even further. If you’re holding onto extra money and want a safe, steady return, now might be a smart time to consider a high-yield CD.

In 2025, many Americans are struggling to build and maintain emergency savings. Although people say they would rather use cash in a crisis, most are relying on credit cards when unexpected expenses arise. This shift is largely due to ongoing economic trouble, including inflation, job insecurity, and changing government policies. A recent survey found that two-thirds of Americans have six months or less saved for emergencies, which puts them at risk during tough financial times. Young adults from Gen Z are especially affected—they're comfortable with digital money and payment apps, but many haven’t built strong savings habits yet, making them more financially vulnerable.

Many baby boomers are being forced to delay retirement because of rising costs and financial pressure. Right now, nearly 30% of boomers are choosing to work longer due to inflation, higher healthcare bills, and expensive housing. These growing costs are making it harder to stretch retirement savings. In some cases, boomers are also helping pay for adult children or aging parents, which adds to the burden. Experts say retirees should take smart steps like paying off high-interest credit cards, reviewing their budgets every year, and putting more money into safe investments and emergency funds. These moves can help protect their savings and ease retirement stress.

A recent report by Goldman Sachs shows that 40% of Americans are living paycheck to paycheck, with little or no money left to save for emergencies or retirement. This means that after paying for basic needs like rent, food, and bills, many people are left with less than $100 each month. Rising costs and wages that aren’t keeping up with inflation are making it harder for people to get ahead. As prices go up but pay stays the same, it becomes more difficult to build savings or plan for the future, putting long-term financial security at risk for millions of Americans.