Dagen McDowell warned that the new cost-of-living adjustment would accelerate Social Security’s fiscal crisis. He detailed how retirees face a 22% cut in benefits by 2032 due to a collapsing worker-to-retiree ratio.
American households are feeling the pressure of inflation that has remained stubbornly above the Federal Reserve’s 2% target since the pandemic, and grocery prices have been a sore point in recent years.
The latest consumer price index (CPI) data from the Bureau of Labor Statistics shows that overall food prices rose 2.5% last year. BLS data shows that the food at home index rose 1.8% from a year ago, while the increase in the food away from home index was almost twice as large at 3.5%.
Kelli Smith, executive director of financial planning at Edelman Financial Engines, told FOX Business that consumers can lower their grocery spending by planning ahead and doing something as simple as creating an “old grocery list” that includes meal plans for the week ahead.
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“Consumers can also save flexibly. If chicken is sold instead of beef, or store brand products are cheaper than national brands, making substitutions can add up to meaningful savings over time,” added Smith.
“Buying staples in bulk is also understandable, but only if the product will be used in your home before it expires.”
Higher food prices cause household budgets and energy costs to rise. (Justin Sullivan/Getty Images)
Smith notes that many grocery chains offer digital coupons through mobile apps or loyalty programs, which can take a few minutes to check out available deals before heading to the store.
However, he cautioned that consumers should “avoid chasing deals that lead to unnecessary spending. Coupons don’t create savings if they’re for things you’re not going to buy in the first place.”
In addition, Smith said rewards programs are important when they align with normal spending habits, including using certain grocery stores or gas stations where fuel rewards, loyalty points or cashback programs are offered.
But he stressed that “consumers need to be careful not to let rewards dictate their spending decisions” because not being able to do something like open store credit cards for rewards “could end up costing you more than you save.”
Smith says that while loyalty rewards programs and coupons can be helpful, consumers don’t have to deviate from their normal spending to use them. (Spencer Platt/Getty Images)
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Ted Jenkin, president of Exit Stage Left Advisors, told FOX Business that consumers should “first and foremost, shop your pantry … check your fridge, your freezer and your pantry, and that will give you a list to say, ‘I don’t need to buy more, or I need to buy more.'”
Jenkin added that consumers should try to only go to the store once a week to stock up, rather than picking up a few items on a trip or stopping by for lunch from a hot food bar.
Jenkin said households should check what they have at home before going to the store to avoid buying too many items. (Li Rui/Xinhua via Getty Images)
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Another tip Jenkin offers is to “check the unit price. Don’t assume that a larger package is necessarily a cheaper package. Sometimes a smaller box of items can be cheaper if you actually check the price on the label.”
Jenkin added that consumers should also be mindful of how to store food in the fridge to avoid going to waste, especially with items like raw meat, dairy and produce, as each has unique storage needs that can lead to faster spoilage if not followed.
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