Dagen McDowell has raised concerns that the recent cost-of-living adjustment could worsen the ongoing fiscal challenges faced by Social Security. She’s pointed out that retirees might be looking at a potential 22% reduction in benefits by 2032, attributed to a declining ratio of workers to retirees.
In the U.S., many households are grappling with inflation, which has stubbornly remained above the Federal Reserve’s target of 2% since the pandemic began. Grocery prices, in particular, have been a significant source of stress for consumers.
The latest data from the consumer price index (CPI), provided by the Bureau of Labor Statistics, revealed that food prices overall increased by 2.5% in the last year. Notably, the index for food at home rose by 1.8%, while dining out was even more affected, with an increase of 3.5%.
Kelli Smith, a financial planning expert at Edelman Financial Engines, suggested to FOX Business that consumers can reduce grocery expenses by planning ahead. Simple strategies like crafting an “old-fashioned grocery list” based on the week’s meal plan can help manage spending.
She also mentioned that flexibility can lead to savings. For instance, if chicken is cheaper than beef at the moment, opting for chicken or choosing store-brand items instead of national brands can lead to noticeable savings over time.
Buying essential items in bulk can make sense, too—just as long as those items have a realistic chance of being used before they go bad.
Smith highlighted that many grocery stores now offer digital coupons via mobile apps or loyalty programs, which can be a worthwhile investment of a few minutes to review before you go shopping.
However, she cautioned consumers against “chasing deals” that may lead to unnecessary purchases. Essentially, if you wouldn’t have bought something in the first place, a coupon doesn’t equate to savings.
She noted that while rewards programs can indeed be beneficial—especially when they align with your regular shopping habits—caution is warranted. Going out of your way to earn rewards, such as opening store credit cards purely for incentives, might end up costing more than what you could save.
Ted Jenkin, president of Exit Stage Left Advisors, suggested that a helpful first step is to check what’s already in your pantry, refrigerator, and freezer to avoid unnecessary purchases. He encouraged making a grocery run just once a week as opposed to frequent shorter trips or grabbing meals from hot food bars while shopping.
Another piece of advice he shared is to pay attention to unit prices. A bigger package isn’t automatically cheaper, and sometimes smaller packages can offer better deals if you check the price labels.
Additionally, how food is stored in the refrigerator can impact its longevity, especially for items like raw meat, milk, and produce, which all have unique storage requirements that need to be respected to prevent spoilage.
