Category Saving

In 2025, many people are changing the way they spend and save money because the economy is uncertain. High inflation, caused by things like supply chain problems and global tensions, is making everyday items more expensive. In the U.S., an ongoing government shutdown is adding to the financial stress, which has led people to look for smarter ways to manage their money. Some are turning to group buying or sharing subscriptions to cut costs. Others are using new technologies like AI-powered savings apps and digital wallets. These tools can track spending, suggest better financial choices, and help people save money automatically. Overall, people are focusing more on spending with purpose and planning for the future.

As the Federal Reserve begins cutting interest rates in 2025, it's causing some important changes in how people should manage their money. Lower interest rates usually mean that loans like mortgages and credit cards could become cheaper, but savings accounts may start offering lower returns. Right now, some high-yield savings accounts — like the one from Varo Money at 5.00% APY — are still offering strong interest, giving savers a rare chance to earn more before rates drop further. At the same time, the stock market has gotten a boost, especially in the tech sector, showing that investors are feeling more confident. This is a good time for people to rethink their strategies for saving, investing, and managing debt to make the most of this changing environment.

As the economy continues to face challenges like inflation and high interest rates, more couples in the U.S. are rethinking how much they spend on engagement rings. According to BriteCo’s 2025 Engagement Ring Cost Report, the average price of an engagement ring has dropped to $6,504, a noticeable decrease from past years. People are now focusing more on value and making practical choices during uncertain times. One of the biggest changes is the growing popularity of **lab-grown diamonds**, which now make up 76% of sales for traditional colorless diamonds. These diamonds look the same as natural ones but cost less and are viewed as a more affordable, ethical option.

In 2025, Gen Z is changing how young people think about money and spending. Faced with rising prices, high interest rates, and job uncertainty, many in this generation are cutting back on non-essential purchases like clothes, gadgets, and accessories. A study by PwC found that Gen Z reduced their spending by 13% in early 2025 and plans to cut back even more—by 23%—during the holiday season. With student loan payments restarting and the economy feeling shaky, this group is focusing on saving, being thoughtful with their money, and choosing value over trends. Instead of spending just for the sake of it, Gen Z is setting new standards for financial responsibility.

In October 2025, many savers are turning to certificates of deposit (CDs) as a way to earn steady interest while protecting their money. With inflation still a major concern and the Federal Reserve unsure about future interest rates, locking in a good CD rate now could be a smart move. CDs are low-risk and offer fixed returns, making them popular with people who want a safe place for their savings. At the same time, the stock and bond markets have been unpredictable this year, so investors are trying to find a balance between safety and growth. Overall, CDs are becoming an important part of personal finance strategies during this uncertain economic time.

In today’s tough economy—with rising prices, high rent, and an uncertain job market—Gen Z is showing that they know how to manage money wisely. Instead of spending carelessly, over 70% of Gen Z say they actively save, even if it’s just a small amount. They are combining old-school techniques, like the envelope method (now called "cash stuffing"), with modern tools such as budgeting apps, automatic savings transfers, and spending alerts. These strategies help them stay on track without having to make hard decisions every day. By making their financial habits more automatic and organized, Gen Z is proving that smart saving isn’t about how much you make, but how you manage it.