How to Stay Financially Steady as Prices Rise

With inflation continuing to challenge family budgets across the Midwest, Northwest Bank encourages customers to stay informed and take practical steps to manage rising costs. According to the latest report from the Common Sense Institute (CSI), Midwest year-over-year inflation has climbed to 3.1%, keeping inflation well above the Federal Reserve’s 2% target. Since January 2020, consumer prices in the Midwest have increased 26.1%, creating a significant affordability burden for many households. The CSI report notes that the typical household is now spending about $1,283 more per month than in 2020 to maintain the same standard of living – totaling more than $45,000 in added costs over that four-year period.

As costs continue to rise, it’s more important than ever for families to take control of their financial habits. At [Northwest Bank, we want to help customers navigate this period and make informed choices that strengthen their financial resilience.”

Here are several strategies to help stay financially resilient during periods of inflation and economic uncertainty.

Reevaluate Spending

Review spending habits during these high-cost periods. Small cuts such as slashing unused subscriptions, comparing prices of goods at different stores, or shifting purchases toward essentials can create helpful savings.

• Action Step - Identify which categories (food, gas, clothes, entertainment, etc.) have increased the most and consider how you can lower them.

Strengthen Emergency Savings

Even modest, consistent contributions can help families avoid debt when unexpected expenses arise. A simple yet effective strategy is starting small and automating contributions when possible.

• Action Step - Set up a small weekly transfer to a savings account. Even $10 per week is beneficial and can add up over time.

Explore Supplemental Income

The Bureau of Labor Statistics reports continued growth in gig and flexible work opportunities. According to WorkLife, more than one-third of the U.S. workforce is now engaged in some form of gig work, projected to rise to half of the workforce by early 2026. Short-term side income can help close the gap between rising prices and slow wage growth.

• Action Step - Explore gig opportunities that fit your schedule and skills, such as freelance projects through Upwork or Fiverr, delivery services such as DoorDash or Uber Eats, or even part-time childcare work that offers added flexibility.

Pay Down Variable-rate Debt

Interest rates may rise alongside inflation, making credit cards and other variable-rate debt more expensive. Try to pay these balances down quickly to reduce long-term costs.

• Action Step - Focus extra payments on variable-rate loans first and try to pay more than the minimum payment required.