Introduction to the Trend
Increasing grocery prices have some consumers, particularly older ones, reconsidering what they buy and how they pay for their items, according to the American Association of Retired Persons (AARP).
Food prices have outpaced inflation and increased by 28% since 2019. In addition, added tariffs on goods from China, Canada, and Mexico have prices rising even more. Consumers in the Inland Empire shared what they’re doing to save funds amid rising costs for groceries.
Consumer Strategies for Saving
“I commute to work and I take the train,” said Norco resident Valerie Steinbeck. “No gas.”
“We don’t eat out as much,” Benie Antoine said. “We may eat out once a month.”
“I make a lot of casseroles, so they last us,” Deborah Pace of Jurupa Valley said.
For many residents, however, cutting corners in those areas simply is not enough. A new study by the AARP showed that more Americans are charging basic necessities on credit cards.
The Impact of Credit Card Use
“This stacks up over other debt consumers are carrying, like mortgage, auto and student loans,” Indira Venkat, Senior Vice President of Research at AARP, said.
If the 25% tariffs that Trump issued against Mexico and Canada are passed onto consumers, families may be forced to evaluate what they can afford.
New data from the organization shows about half of older Americans are charging everyday purchases like gas, food, healthcare expenses, and even utilities on their credit cards. The average balance for these consumers is $5,000.
Concerns for Older Americans
“This is a group that is feeling the pain of paying off a credit card more acutely than those over the age of 65 because it’s concerning since they have in their line of site retirement,” Venkat said.
AARP has several tips for shoppers being mindful of their spending. It recommends purchasing generic brands, clipping coupons, and buying items in bulk among other suggestions. For a look at the organization’s tips, click here.
Conclusion
The trend of using credit cards for groceries and other essentials is a concerning one, especially for older Americans who are nearing retirement. It’s crucial for consumers to be mindful of their spending habits and explore alternative ways to manage their finances. By adopting strategies such as buying generic brands, clipping coupons, and buying in bulk, consumers can reduce their reliance on credit cards and mitigate the impact of rising grocery prices.
FAQs
Q: Why are consumers using credit cards to pay for groceries?
A: Consumers, especially older ones, are using credit cards to pay for groceries due to increasing prices and the need to manage their finances.
Q: What are some tips for reducing credit card use for everyday purchases?
A: Tips include purchasing generic brands, clipping coupons, buying items in bulk, and being mindful of spending habits.
Q: How much debt are consumers carrying on their credit cards for basic necessities?
A: The average balance for these consumers is $5,000.
Q: What is the concern for older Americans using credit cards for everyday purchases?
A: The concern is that they are feeling the pain of paying off credit cards more acutely as they approach retirement.
