- 77% of Americans say they’ve felt the most significant cost increase in groceries, followed by utility bills (39%) and gasoline (37%).
- One in five (20%) say they are buying more unhealthy food as a cheaper option, while 25% admit to occasionally skipping meals, a figure that climbs to 32% among Gen Z.
- Half of Americans (50%) earn too much money to qualify for government assistance (i.e., food stamps), but not enough money to afford necessities (i.e., rent, groceries, bills).
Weekly grocery hauls cost a lot more than they used to, and it’s dramatically impacting Americans, from resorting to unhealthy options and skipped meals to general financial strain. Whether it’s feeding a family of six or dinner for one, the rising cost of essentials is not only changing the way consumers shop and budget, but how they feel and live their daily lives.
According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, 82% of Americans are concerned about inflation’s impact on daily necessities. In fact, 77% of people say they have felt the most significant increase in grocery costs, followed by utility bills (39%) and gasoline (37%).
Essential items are also eating up a large portion of people’s budgets, and fast, with 30% reporting they spend more than 60% of their monthly income on bills, groceries, and housing, rising to 40% of those with household incomes (HHI) of less than $50K. To cope with persistent inflation, 58% of Americans have had to cut back on non-essential spending like dining out or shopping, and many have taken more drastic measures, like accumulating debt (26%), depleting their savings (24%), and neglecting medical care (17%).
Sadly, as many as 30% are unable to replenish their depleted savings, noting they are unable to put any of their monthly income toward savings.
Grocery costs take a physical and emotional toll on consumers
The rising cost of groceries has forced many Americans to make difficult, and potentially harmful, financial and lifestyle adjustments. One in five (20%) say they are buying more unhealthy food for themselves and their families because it’s the cheaper option, 25% admit to occasionally skipping meals, a habit even more common among Gen Z (32%), and 21% have had to sacrifice other necessities to afford their groceries.
To soften the blow, many people are getting thrifty, they’re buying generic or store-brand products (56%), shopping at discount stores like Dollar Tree or Dollar General (35%), or prioritizing shopping at retailers that offer promotions (22%).
This financial strain has even led to emotional distress for some, with 19% of people admitting they feel ashamed about their inability to afford groceries.
Yearning for yesteryear
Three-quarters of Americans (76%) say that their money doesn’t go as far as it did three years ago, and nearly a third (31%) say they’d need an additional $1,500 to $2,000+ per month to afford the same standard of living from three years ago. This feeling of needing more to survive is especially pronounced among Gen Z and millennials, 23% and 24% of whom respectively say they’d need $2,000 or more each month to maintain the same standard of living they once had.
Government and community lifelines help some, but not all
Many Americans find themselves in a financial pickle amid today’s cost of living, with half (50%) claiming they earn too much money to qualify for government assistance but not enough to comfortably afford necessities like groceries. That’s not to say people aren’t turning to government and community resources for help. About one in six (17%) Americans have applied, or considered applying for food stamps, while others are relying on food banks (16%).
Americans brace for a new normal; Gen Z remains resistant
Despite the financial burden many are facing today, there are signs that Americans are starting to adjust to the new normal. As many as 64% say they’ve accepted that higher prices for essential items are likely here to stay. However, Gen Z is not as willing to make the necessary adjustments to their budget. While a healthy 48% of Gen Zers are limiting or halting non-essential spending, it doesn’t compare to the same willingness among millennials (55%), Gen X (73%) and boomers (77%).
“The rising cost of essentials, particularly groceries, is putting immense financial pressure on American households across various income levels, forcing people to make difficult tradeoffs that may be suboptimal for their health,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Everyone should feel empowered to tap into all resources available to them, and if you’re looking for ways to save on groceries, I recommend shopping with a list to avoid impulse purchases, choosing in-season produce for better prices, and meal planning around your local store’s sales and promotions.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025, to March 11, 2025, among 2,074 adults ages 18 and older.