Consumer prices have risen 3.5% over the past 12 months, as of June 2026. Many Americans are feeling the squeeze, with more than 4 in 5 Americans (83%) saying the rising cost of living has contributed to them tracking their spending more closely in 2026, according to a recent NerdWallet survey.
Millennials and Spending
This is especially true for millennials: 89% of millennials say rising prices have them tracking their spending more closely, compared with 84% of Gen Xers, 80% of Gen Zers, and 79% of baby boomers.
Millennials are starting to hit their peak earning years, so it could be surprising that they’re also the generation most likely to focus on tracking their spending due to rising prices. However, this cohort is likely also in its peak spending years, with the median first-time home buyer being 40 years old, according to the National Association of Realtors, and many Americans starting or continuing to grow their family into their 30s and 40s.
Categories with Surprising Spending
Some millennials are finding surprises in both necessary and discretionary expenses. When asked which categories they were surprised to discover they were spending more than they expected in the past six months, about two-thirds of millennials (66%) said groceries and 54% said gas. Dining out (42%) and household goods (41%) were also among the most commonly cited categories.
Necessities like groceries, gas, and healthcare may be hard to reduce. But even amid rising costs, you can take steps to identify why your spending has increased and make adjustments for more breathing room in your budget going forward.
How to Keep Budgets in Check
1. Separate inflation from habit creep: Track your purchases for a month to determine if increased expenses are due to inflation or habit creep.
2. Target the biggest categories first: Identify your discretionary expenses and work on those first.
3. Set realistic limits for high-cost categories: Cut back on spending by a realistic amount, rather than trying to make drastic cuts.
4. Build in a cushion for uncertainty: Keep a few hundred dollars extra in your spending plan to account for costs that are higher than expected.
Original reporting: KTBS 3 (Shreveport) — read the source article.
