In 2025, rising food prices are pushing Americans to rethink how they spend money on meals. On average, households are now spending about $1,546 per month on food, including groceries and eating out. A key reason for this increase is inflation, which continues to raise the cost of living. As a result, many people are adjusting their spending habits. Younger generations, like millennials and Gen Z, are leading the way by choosing cheaper options such as meal prepping at home and shopping at discount grocery stores. These changes show how economic pressures are shaping not just what people eat, but also how they think about money and everyday choices.

As the U.S. economy shows signs of slowing down and job growth remains weak, many Americans are changing how they live and spend money. With the Federal Reserve expected to cut interest rates, mortgage rates have already dropped to 6.42%. This has sparked new interest in buying homes and refinancing. Some families are choosing to move to more affordable cities with stronger job markets to save money and find better opportunities. At the same time, people are becoming more careful with spending, focusing on essentials and looking for better value in everyday purchases. These changes reflect how people are trying to stay financially secure during uncertain economic times.

As of September 2025, rising inflation and delays in lowering interest rates are creating financial stress for many Americans. Experts now expect the consumer price index (CPI) to rise to 2.9% year-over-year, driven by higher energy prices and tariffs on common goods like clothing and home items. Core inflation, which the Federal Reserve closely watches when making rate decisions, remains above 3%, making it harder for the Fed to justify cutting interest rates soon. This means that borrowing—for things like homes, cars, or credit cards—could stay expensive for longer, and everyday living costs may continue to rise, squeezing household budgets.