The Apple Fifth Avenue store in New York, United States, on Monday, February 24, 2025.
Michael Nagle | Bloomberg | Getty images
Even as break on reciprocal prices has been put into force, consumers are already planning higher prices pressures.
A majority of Americans – 85% – have concerns about prices, according to a new Nerdwallet survey of more than 2,000 people carried out this month.
Among the main concerns of consumers, new policies will have an impact on their ability to afford necessities and that the American economy will fall into recession.
Meanwhile, the cracks in consumer confidence are manifested elsewhere.
The consumer survey of the University of Michigan shows The feeling fell More than 30% since December among the persistent concerns of a trade war. The last reading for April dropped by 11% compared to the previous month, which was Worse than planned.
The concerns are not unfounded, say the experts. The prices could cost the average household $ 3,800 per year, the LAB budget at Yale University estimates.
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“Most Americans are concerned about prices, and this has an impact on their spending plans,” said Kimberly Palmer, an expert in personal finance at Nerdwallet.
Over the next 12 months, a large part of those questioned by Nerdwallet plans to make changes to their spending habits, with a significant development towards savings.
More specifically, 45% plan to spend less on non-securitycessions, 33% intend to spend less for necessities and 30% plan to save more money in an emergency fund. However, a smaller percentage, 14%, plans to pay less on their debts.
The prices came while consumers already had trouble paying the grocery store and other essential elements in the middle of higher prices, according to Palmer.
“These prices add to this financial stress and essentially force people to make difficult decisions,” said Palmer. This includes reducing travel and purchases of large tickets planned as a car.
Emergency savings are the most important priority `'': expert
New economic pressures may encourage income to be consumed by increasing competing prices and interests, according to Stephen Kates, certified financial planner and financial analyst at Bankrate.
Consumers may have to make difficult choices between saving, investing and repaying debts.
“If you have nothing (saved), start with the emergency fund,” said Kates.
Individuals should endeavor to have at least a month of essential expenses reserved for the minimum, said Kates. Ideally, it would be more like three to six months of subsistence spending, he said.
In this way, if a job or another loss of income occurs, consumers can protect themselves from debt, said Kates.
For people who have already accumulated debt sales, the priority of emergency savings is always logical, said Kates. And if you choose between emergency savings or retirement savings, emergency savings should always be the highest priority, he said.
Admittedly, this does not necessarily mean that individuals should ignore their other objectives.
Kates discussed the use of what is called the “Debt Avalanche” strategy.
The emphasis is placed on the reimbursement of the debt with the highest interest rate first – while paying minimums on the others – then go to the account with the following highest rate, etc. This can provide immediate return and help release money in household budgets, said Kates.
Regarding retirement savings, it is important to ensure that individuals contribute enough to take advantage of a match, if their employer offers one, he said.
