Living and saving with high inflation

Our COUNTRY Financial® survey1 revealed about 9 out of 10 (88%) Americans are concerned about inflation, and rightly so. In October, annual inflation hit a 30-year high which could tempt consumers to stop focusing on long-term goals.

Feeling good about money

More than 6 in 10 Americans are feeling good or excellent about their financial security and are able to set aside money for savings and investments.  

COVID-19 having little impact on financial security 

Just 2 in 10 Americans say COVID-19 has negatively impacted their financial security in the past year. 

How high inflation impacts consumers

According to the survey, Americans plan to alter their spending habits and lifestyle choices and even postpone costly plans that they’ve been making.

Where Americans are feeling the impact

  • Gasoline or travel (86%)

  • Groceries (80%)

  • Eating out at restaurants or take out (67%)

  • Utilities (51%)

Ways Americans are cutting back

  • Less dining out (48%)

  • Fewer technology upgrades (30%)

  • Tighter food budgets (29%)

  • Less driving (13%)

What is inflation?

Inflation is an economic term describing a situation when the prices of goods and services increase over time, decreasing the value of your money. In 2021, inflation was above three percent which is higher than what we have experienced in recent years.

Consider options before pausing savings

When budgets get tight, you may be tempted to pause or reduce savings.  Before you do, consider these options:

1. Tighten the budget

No one wants to reign in their spending, but a close look at the budget now may pay off in the long run. Use this budget calculator to help.

2. Boost your income

Ask for a raise. With labor shortages hitting many employers hard, asking for a raise may be easier than ever.

Sell your stuff. With supply chain issues causing delays and shortages, you can get top dollar selling used items that are in high demand, like cars, RVs and boats.

3. Commit to three financial principles

Live on less than you earn, commit to saving and maintain your emergency fund. 

Don’t go it alone

When the going gets tough, the tough find a professional. Navigating financial goals can feel overwhelming in the best of circumstances.  We have a team of experts2 available to provide complimentary planning services and can meet over the phone, on a video call or in person. We’re here to help.

More resources

  • Emergency Funds and You

    Know your numbers, set your goals, choose a winning mindset, identify where you can save, be realistic and reward yourself, and recognize the role of insurance.

The COUNTRY Financial Security Index survey has measured Americans' feelings about their personal financial security since 2007. Surveys are conducted using Ipsos' KnowledgePanel®— a national, probability-based panel, designed to be representative of the general population and includes responses from approximately 1,330 U.S. adults for national surveys. The margin of sampling error for a survey based on this many interviews is approximately +/- 3.2 percentage points at the 95% confidence level.  See the full results.

1The COUNTRY Financial Security Index® survey of 1,031 U.S. adults, fielded by market researcher Ipsos.

2Financial planning professionals with COUNTRY® Trust Bank (CTB) and its Investment Solutions Representatives, who provide marketing, solicitation, and client assistance on CTB’s behalf; sales of products by Registered Representatives of COUNTRY® Capital Management Company. The specific team(s) involved will vary by need.