Tips to help you save amid high inflation
Though inflation has slowed, money experts say we're not out of the woods yet.
FRESNO COUNTY, Calif. (KFSN) -- Some money experts say financial literacy at an early age can go a long way when it comes to inflation.
According to statistics from the Bureau of Labor, price increases remain significant when it comes to airfare, electricity, rent, and groceries.
Wheland Financial CFO Taylor Wheland says within the last 10 years, the consumer price index has steadily increased each year by small increments with the exception of 2021, which spiked.
Though inflation has slowed, Wheland says we're not out of the woods yet.
"Inflation has gone back down to 5%, which means prices from the middle of 2022 have gone up only at 5% to where we are today in 2023.
With the Fed hiking interest rates, the cost to borrow money has also gone up.
"But other things happen that are good," explained Wheland. "So for example, you can put your money into either money market funds, CDs, or treasuries. These are just short-term investments that pay you for holding your cash there."
"For example, a treasury right now is yielding somewhere in the, in the realm of 4.5 to 5%," Wheland added.
It's important to be aware of any penalties before investing.
"If you hold them to maturity, then you receive the yield. You receive that promised amount of payment over that over that holding period.
As for long-term investments, such as stock.
"For people who are gearing up for retirement, now represents a pretty good time. Because you're able to buy things at a discount compared to where we were at the end of 2021.
Whether you're paying debts down, saving, or trying to establish an emergency fund, use it as a teaching opportunity for any children in the household.
"I think financial literacy is so, so, so important. You know, at 18 years old, when people are getting ready to sign the probably the biggest loan of their life, which is for college, they know absolutely nothing about finance."
Whelan says establishing an emergency fund and try paying down your high-interest debt are key when it comes to inflation.
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