In recent years, the U.S. economy has split into two very different experiences for Americans, a trend often called "The Great Divergence." On one side are the wealthier households—mainly Gen X and Baby Boomers—who built up savings during the pandemic, have seen their investments grow, and work in high-paying jobs. These individuals are still spending freely on things like vacations and luxury items. On the other side, most Americans—especially Millennials and Gen Z—are struggling to keep up. Their wages have barely grown, while the prices of basics like food, rent, and gas have jumped by over 20% since 2020. As a result, many are cutting back, shopping at discount stores, and focusing only on essentials. This growing divide is changing how different groups of people live, spend, and plan for the future.

Inflation in the U.S. remains a big concern as prices for basic needs like food, housing, and energy continue to rise faster than expected. According to the latest Consumer Price Index (CPI) report, prices increased by 0.4% in August and are now 2.9% higher than they were a year ago. This is more than the Federal Reserve's target of 2% inflation. To slow inflation, the Fed has been raising interest rates, which makes borrowing more expensive for things like car loans, credit cards, and mortgages. At the same time, more people are filing for unemployment benefits, a sign that the job market might be weakening. These economic changes are making it harder for many families to afford everyday living expenses.