In 2026 and beyond, inflation continues to fuel an affordability crisis for families, as high costs for essentials like housing, food, and childcare outpace take-home wages. Families now face a new normal of elevated prices, increasing debt-to-income ratios, and reduced discretionary spending. As a result, many people dip into savings or use credit to manage daily necessities.

Cost-Saving Tips

While soaring inflation is causing many people to rethink their spending decisions, an important decision consumers can make is to create and use a spending plan. A spending plan is simply a budget outlining how household funds will be spent. A spending plan also helps to control spending. Other cost-cutting tips to control spending on food, gas, housing, clothing, and entertainment are listed below.

Food

• Use coupons and coupon apps.
• Take advantage of special offers (e.g., two items for the price of one).
• Buy generic or store-brand items.
• Plan menus ahead of time.
• Buy cheaper cuts of meat.
• Buy in bulk, but make sure the unit price is lower than when sold individually.
• Avoid buying food items that require less labor (e.g., chopped onions, bagged salad, cubed fruit, or shredded cheese) because they cost more money.
• Limit eating out.
• Establish home gardens or visit community gardens for fresh produce and to reduce food costs.

Gas

• Use public transportation where available.
• Carpool to share a ride.
• Use apps to avoid traffic jams or rush hour traffic.
• Use gas apps to locate the least expensive gas in your area.
• Keep your vehicle well-maintained (tires properly inflated, regular oil changes, etc.)

Housing

• Move in with parents or friends, or get a housemate.
• Learn to do your own home repairs if a licensed person is not required.
• Identify ways to reduce energy and water usage to save on utility bills.

Clothing

• Shop end-of-season clearance sales and plan for children’s growth spurts.
• Host a clothing swap with parents who are looking to buy or sell used kids’ clothing.
• Take good care of clothing and learn to mend clothing as needed.
• Set a clothing budget.
• Buy used clothing.

Entertainment

• Look for free or low-cost local events on online calendars or at local libraries.
• Use discounts, coupons, and other promotional offers.
• Entertain at home with potluck dinners and engage in game or movie nights.
• Buy season passes to museums, theme parks, or other recreational facilities.
• Enjoy state or national parks with free hiking or birdwatching trails.

More Information

In closing, some individuals whose wages increase with inflation can possibly absorb the rising cost of necessities more easily. Unfortunately, many individuals and families (e.g., older adults and those living paycheck to paycheck) feel the pinch of increasing prices as inflation outpaces their paychecks. Nonetheless, use these money-saving tips to survive the high cost of living.

Visit www.aces.edu for more cost-saving tips to reduce monthly household expenses.