Many Americans are spending a lot of money eating at restaurants, even as they worry about saving enough for retirement. With prices rising due to inflation, some people are paying over $40 per person each time they eat out. This adds up quickly and can take money away from savings that could be used later in life. While going out to eat is often convenient and enjoyable, it can also become a costly habit. In today’s uncertain economy—with high grocery prices and concerns about Social Security’s future—cutting back on restaurant spending could help people better prepare for retirement.

A recent survey by Schwab shows that many American workers are feeling less confident about their retirement plans because of ongoing inflation. With prices staying high and interest rates not dropping, people are worried about how much money they’ll need in the future. Even though confidence is down, most workers are not cutting back on contributions to their 401(k) retirement plans. Instead, they're choosing to spend less on everyday things in order to save more for the long term. This shows that people are taking inflation seriously and making smart financial choices to protect their future.

Despite rising prices for basic needs like housing, healthcare, and food, many middle-class Americans are finding ways to save for retirement. A new study from Principal Financial Group shows that 80% of middle-income earners are saving money for their future, even while inflation and high interest rates impact day-to-day living. On average, they’re saving around 8% of their income. This positive trend is happening because more people are learning how to manage money better, cutting back on unnecessary spending, and focusing on long-term goals. Many of these habits were strengthened during the COVID-19 pandemic, when people became more aware of the importance of financial security.