A volatile economy and new tariffs under President Trump are driving up the cost of everyday goods and services, but few price hikes hit home as hard as groceries.
Nearly half of all Americans say food costs are causing “major” stress in their lives, according to a poll from the Associated Press-NORC Center for Public Affairs Research [1]. Only 14% of Americans say grocery prices are not a financial concern.
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This anxiety cuts across generations. Younger consumers may be preoccupied with credit card debt, student loans or soaring housing costs, but when it comes to groceries, the strain is universal — felt by both the young and the old.
Many households are turning to food assistance programs to fill the gap, yet even those lifelines now feel shaky. With the political climate in flux, Americans are increasingly worried about the future of their local food banks [2].
“I have no savings,” Esther Bland, 78, told AP. “I’m not sure what’s going on politically when it comes to the food banks, but if I lost that, groceries would absolutely be a major source of stress.”
Nearly two-thirds of the lowest-earning Americans, making under $30,000 a year, say that grocery prices are a major financial stress, compared to four in 10 Americans making above $100,000. American women and Hispanic adults are also particularly stressed about grocery costs and finances, AP’s survey found.
Some Americans are even resorting to “buy now, pay later” options through platforms like Affirm, Klarna and Afterpay to cover not just grocery bills, but medical and other essential expenses.
While this option is advertised as safer than a traditional loan and can help struggling Americans cover costs quickly, lender reports show these payment options are causing many buyers to borrow more than they can handle [3].
The problem with buy now, pay later
In times of financial uncertainty, finding ways to pay for food is a top priority for you and your family, and it may be tempting to use buy now, pay later services. But there are risks with this option.
If you’re using BNPL for recurring food costs, that can cause multiple overlapping payments and raise your risk of missed payments and late fees. Plus, BNPL payments are now being reported to credit bureaus, putting you at risk for a credit score hit if you miss a payment [4].
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How financial stress manifests
Anxiety around grocery prices may be a near-universal feeling, but that doesn’t mean it can’t affect some individuals more than others. And financial stress can hit both your wallet and your physical well-being.
Nearly seven in 10 Americans say that financial uncertainty has caused them depression and anxiety, according to a study from Northwestern Mutual [5]. Younger Americans report high percentages of financial anxiety, even reporting impacted sleep, marital issues and lowered job performance.
Meanwhile, four in 10 Americans have reported physical illness due to financial stress, with 53% of Millennials and 56% of Gen Z saying they have felt sick because of money problems.
With fears that wages can’t keep pace with rising costs, many employees may take up multiple jobs or side hustles, leading to more physical stress and negative effects on familial and social relationships [6].
How to budget for rising costs
The increasing costs of food — along with other everyday expenses — can feel overwhelming, but there are ways to budget your grocery bill and weather rising supermarket prices.
Start by tracking your current grocery spending to get an idea of where you can save. If you don’t already, consider making weekly meal plans that are fairly predictable, and always go to the grocery store with a list to help prevent overspending.
You can also try switching from your local grocery store or supermarket chain to a discount store, such as Aldi, Costco or Sam’s Club. Purchasing generic brands can also keep costs down, and always use coupons when you can.
Furthermore, one of the best ways to lower food costs is to reduce how often you dine out. Cooking your favorite meals at home could save you 50% on food, even more if you stop getting food delivered [7].
If food purchases are consistently unaffordable even after revisiting your budget or switching to discount options, consider seeking local food assistance or applying for government programs such as SNAP or WIC.
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[1]. Associated Press. “The vast majority of US adults are stressed about grocery costs, an AP-NORC poll finds”
[2]. Associated Press. “A look at what will happen to food assistance under Trump’s big tax cut bill, by the numbers”
[3]. Associated Press. “Why are more shoppers struggling to repay ‘buy now, pay later’ loans?”
[4]. NPR. “’Buy now, pay later’ purchases can now affect your credit score. Here’s what that means”
[5]. Northwestern Mutual. “Planning & Progress Study 2025”
[6]. PerkSpot. “The Cost of Financial Stress: What Employers Need to Know in 2025”
[7]. CNET. “How Much Cheaper Is Cooking at Home Than Takeout? We Do the Math”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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