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How Inflation is Impacting Everyday Americans: 6 Stories

Is life in the U.S. becoming too expensive? Certainly that’s the concern for many Americans.

Gallup’s annual Economy and Personal Finance poll found that, in 2024, respondents named inflation as the most important financial problem they face today.

And despite some optimism that the economy will soon improve, a 2025 Allianz Life study found that 60% of Americans believe inflation will get worse this year.

Learn how inflation has affected six individuals and their families from across the country, and how you can bounce back from higher prices.

1. Trouble Securing Housing

Lindsay Keeling, a Ph.D. candidate from Las Cruces, New Mexico, says skyrocketing housing costs are leaving her feeling unstable. A 2024 Joint Center for Housing Studies of Harvard University report found that roughly half of the state’s renters are cost-burdened, meaning more than a third of their paychecks go toward rent.

“Rent has gone up so much over here,” says Keeling, who also has a baby and a dog.

“I have friends who have a hard time finding places that fit what they need. Our house will be sold and we will be looking, but the places I can afford will be small, in a dangerous part of town. Some don’t have adequate heating and cooling. Landlords and property owners are being tighter with people, too, looking for higher credit scores and income,” she says.

Keeling says she is now weighing buying a home despite not feeling ready.

“We’re one emergency away from being in big trouble,” she says. “Just now we’re trying to start an emergency fund, but there’s not a lot of money left over.”

If you’re a renter and will be looking for a new home in 2025, prepare for higher prices now. Apartments.com warns that while rent prices stayed somewhat steady in the U.S. in 2024, this year they are expected to rise by as much as 3%. Take this time to secure your job and build your credit.

[U.S. News Editors Share How to Avoid Credit Score Drops in the New Year]

2. Struggling With Rising Eldercare Costs

Michael Dineen, author of “Suburban Gangsters” and former personal trainer for professional athletes lives in Long Island, New York. He says inflation has hurt his ability to properly care for his elderly father who had cancer.

“It caused us to spend dad’s savings caring for him for the last four years before he passed,” Dineen says. “Things got so expensive. It took a tremendous toll and can never be undone. Food alone was a huge bill. Clothes went up too. I went through hundreds of pairs of pants, hundreds of shirts, socks, shoes, mattresses and comforters.”

Cancer treatments wreaked havoc on his dad’s body, leaving him incontinent and needing to be changed often. Without a washer and dryer, Dineen took all salvageable clothes to the laundromat, which was another expense.

“Things got ugly,” Dineen says. “The oil for the house tripled for heating it and everything that could have gone wrong did. It was a perfect storm for destruction of the average American. I wasn’t able to work having to care for Dad because we couldn’t afford help. They wanted to take his home and more if we got a home aide.”

Unfortunately, Dineen’s experience is common.

A 2024 report by the online caregiving platform A Place For Mom indicated that 72% of caregivers experience financial strain as they care for aging loved ones. If you’re in the same position and need financial help, contact the Administration for Community Living, which provides an eldercare locator to find resources in your area.

3. Making Hard Choices About Extra Expenses

Jeff Le, a public policy professional based in Silver Spring, Maryland, says inflation has caused him and his family to make drastic reductions in extracurriculars.

Le and his wife have two children, ages two and four, but going out as a couple requires hiring a babysitter. Rates in his area have increased dramatically over time. Now, with a tip, it averages around $50 per hour.

“So we pulled back on all of it,” Le says. “We haven’t used babysitter services in over 18 months. Its $150 for a night out, not including the dinner.” Instead, he and his wife take turns going out, but he says its not ideal because they don’t get the same kind of recharge.

The couple also canceled their gym memberships and streaming services because the costs had been escalating, and took advantage of the BuyNothing platform to score free clothes for their growing children.

“We went through the Excel spreadsheets for our monthly expenses and did the math,” Le says. “We had to ask, ‘Where would we rather spend it?’ and concluded that we’d be better off putting the money in an emergency fund and paying for the kids enrichment, like gymnastics classes.”

[How Much Should You Save In an Emergency Fund?]

This “make it work” approach can be adopted by anyone, Le says. “It forces you to become more intentional. That clarity is very helpful especially when prices go up and you have to make hard choices.”

4. Struggling to Stay Healthy

As a professor of public health at New Mexico State University, Jagdish Khubchandani not only teaches about the problems associated with escalating medical costs, he sees first hand how it has impacted his students.

“It’s very sad,” Khubchandani says. “They forgo medical care when needed, and rationing of medicine becomes common. The cost of annual visits and supplements is higher, so people have to make some cuts somewhere.”

In fact, a 2024 GoodRx Research survey discovered that more than 60% of Americans say the cost of their prescription medications is a burden, and 34% rationed or skipped medication due to cost.

Khubchandani has also noticed an indirect impact of inflation: people neglecting their health. “They can only afford unhealthy food, compromise on expenses related to exercise, and above all, the stress of inflation may worsen peoples’ health.”

[How to Eat Healthy on a Budget]

Although it’s tempting to delay addressing medical concerns and hope they go away without having to go to the doctor, preemptive care is usually best, Khubchandani says. Prioritize your health and apply money-smart strategies to save on prescriptions.

5. Changing Grocery Store Habits

Many common grocery store items have become far more expensive than they’ve been in the recent past, straining budgets from coast to coast.

The average price of one dozen Grade A eggs was $4.14 in December, representing a 13.6% hike from the previous month, according to the Bureau of Labor Statistics’ Consumer Price Index data.

Odessa, Florida, resident Chrissy LeBlanc says higher prices at the supermarket have definitely changed how she shops for her family of four. First, she identified the store with the lowest prices and that is closest to her house so she can save on fuel.

“We have ended up shopping exclusively at Publix,” LeBlanc says.

“We have found that it is the most cost efficient for us. We don’t have a lot of time or energy to jump from store to store to find the best prices of what we are looking for. We did end up having to buy less fresh fruit and vegetables because it would put us over our food budget. Most foods that are on sale end up being pretty processed and not very healthy but we need to make sure our kids are getting fed,” she adds.

On the bright side, LeBlanc has become far more attuned to scoring deals and discounts at the grocery store, and now tries to buy food when the items are buy one, get one free or on sale. She uses the market’s app and figures out what she can make from what is on that list for the week.

6. Coping With Escalating Home Costs

Jane Brosseau, a Chantilly, Virginia, mom of 10 and social media content creator says her home’s energy costs and basic utilities have almost doubled over a four- to five-year span.

“Since 2020, our monthly expenses for electricity, gas, water and trash have increased significantly; between 15% and 40%,” Brosseau says. “We now spend around $600 a month on these essentials, whereas just a few years ago those bills only cost us about $360. It’s a big jump and definitely puts a strain on our budget.”

At this time, Brosseau says that there isn’t much she can do to lower the costs. The 3,000-square-foot-home is a rental, so they can’t install solar panels to save on energy bills.

“We’re kind of stuck,” she says. “We need heat and air conditioning. These are nonnegotiable. So, we close the doors, turn the lights out when we’re not in the room and take short showers. There’s more of an awareness for all of us, and that’s good. It’s positive because its become a team effort.”

You Can’t Control Inflation but You Can Control Your Spending

There’s nothing you can do to change the cost of goods and services. As a consumer, though, you can make the best choices for you and your family no matter where you live.

Lean into helpful resources if times get tough; that’s what they’re for. And during the good times, save as much as you can. Cash in the bank that you can tap when needed is always less expensive than borrowing your way out of an emergency.

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How Inflation is Impacting Everyday Americans: 6 Stories originally appeared on usnews.com

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