Money Management

Walmart is flexing its muscles to try to avoid further price hikes. 

Soaring prices have hit Americans hard in the past year, impacting everything from food to gas, housing, and other essentials. According to the latest data from the Bureau of Labor Statistics, food at home in January cost over 10% more than it did a year ago. Unfortunately, many consumers have had little choice but to find ways to absorb the higher costs.

For those looking for a light at the end of the inflationary tunnel, there is some good news. Not only does it seem that inflation is slowing down, but some companies — such as Walmart — are telling suppliers that enough is enough.

Walmart’s plan to stop more price hikes

A lot of different factors pushed prices up last year. These include a pandemic-stimulus-fueled surge in spending, a disruption in global food and gas supplies following Russia’s invasion of Ukraine, higher transportation costs, and other supply chain issues.

But some of those pressures are easing now. For example, the cost of both freight and packaging are falling. That gives chains like Walmart more power to challenge suppliers and — hopefully — avoid further price hikes. According to Reuters, Walmart has told suppliers that consumers can’t swallow any further price increases. The CEO of one company told Reuters Walmart had advised they’d have to “have really good reasons” to price up at this point.

Walmart prides itself on its low prices, with the slogan “Save money. Live better.” It’s good to see the company pushing back on price hikes and defending consumers. That said, it isn’t the only low-cost store around — it’s also worth checking out Aldi, Lidl, Trader Joe’s, and Costco if you’re looking to reduce your grocery bill. A lot depends on the items you buy, whether you buy in bulk, and which stores are easy to get to.

How to cut your grocery bill

The increase in prices has pushed some Americans to dip into their savings accounts or even take on debt to keep up with essential costs. If you’re struggling to stay on top of higher prices, don’t rely just on Walmart or other chains to bargain for lower prices. There are a number of ways you might cut your grocery costs yourself, starting with the store where you shop and the brands you buy. For example, avoiding big brands can often shave a few dollars off your bill, without compromising much on taste or quality.

Here are some other moves you could make:

Shop with a list: Having a list can save you money, time, and stress. For starters, you’ll be able to make fewer trips to the store and avoid accidentally buying items you already have at home. It also makes it easier to avoid impulse purchases and maximize any cash back app promotions.Cut out food waste: According to the USDA, around one-third of the food in the U.S. gets wasted. Don’t let your kitchen be part of that statistic; use leftovers, watch sell-by dates, and freeze food before it goes bad. Check out food waste apps, as these may generate great deals on produce that would otherwise be thrown away.Maximize cash back: If groceries make up a big portion of your monthly budget, look for a credit card that will reward you for that spending. Layer your benefits by combining a grocery rewards card with a cash-back app and other promotions.Search for discounts: Use coupon apps and websites to find the best deals on items you buy regularly, especially more expensive products. Throw in the additional deals you’ll find in store and you can snag some big savings. There’s one caveat though: Don’t let those offers tempt you to buy things you won’t use or wouldn’t normally have bought.Buy in bulk: Bulk buying can be a great way to save money, especially on products you know you’ll use before they go bad. If you’re worried about the upfront costs, or aren’t confident you’ll get through it all, consider splitting the cost and the purchase with a friend or neighbor.

Bottom line

There are signs that inflation is slowing, and moves from big chains such as Walmart to keep prices in check are certainly welcome. Even if prices don’t fall in the coming months, they might not shoot up again either.

That said, you don’t necessarily have to make big life changes to beat inflation. If you can implement several small tweaks that all generate small savings, you’ll be surprised at how much they can add up and leave you with more money in your bank account at the end of the month.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

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If you have kids, these Dollar Tree items could make great gifts. 

The Dollar Tree has a surprising amount of great items that are budget-friendly and that can help you declutter your home, entertain your kids, or meet other household needs. But, it can sometimes be hard to figure out what’s worth putting on your credit card and which items you’d be better off leaving on the shelf.

Our family has tried a whole bunch of Dollar Tree products, and we’ve discovered five items that are my 3-year-old’s absolute favorites and are well worth buying. Here’s what they are.

1. Block-building kits

The Dollar Tree has a wide variety of different kits with small building blocks you can use to construct things like fire trucks and dinosaurs. These are similar to Legos (and some of the pieces are even compatible with Legos). But while Lego kits can be expensive enough to put a real dent in your bank account, these are just $1.25.

My son adores picking out a kit, working with his dad to put it together, and playing with the finished product. We get hours of entertainment from these kits, and they are well worth the price.

2. Dinosaur figurines

The Dollar Tree also has a great selection of little dinosaur figures that my son can play with. He has a full collection of the different dinosaurs and he really enjoys playing pretend with them and looking them up in his dinosaur book to see what kind they are. He’s even learned which are herbivores and carnivores. And the dinosaurs at the Dollar Tree cost much less than plastic figurines elsewhere.

3. Color-with-water books

My son really enjoys coloring, but we don’t like to leave him alone with crayons and markers since he still can’t be fully trusted not to color on the furniture. With water books, we don’t have to worry about it. He gets a water pen or a paint brush and a cup of water and can color or paint to his heart’s content. The paintings create vibrant colors and he’s always really happy with the finished product.

4. Kid-sized sunglasses

We spend a lot of time at the pool and playgrounds outdoors, and my son is constantly demanding our sunglasses but of course they don’t fit. He was delighted to discover Dollar Tree made kid-size options in different patterns. He picked out a few pairs, and since they only cost $1.25, I don’t have to worry too much if he loses or breaks them.

5. Craft kits

Finally, we enjoy doing all of the different craft kits that Dollar Tree offers. There’s usually seasonal kits so he can paint Santa or create a Rudolph sticker project during the Christmas months and then switch up to a Valentine’s craft when February comes along. There’s also lots of different kinds of craft kits, from wooden figures to paint to an easel and canvas to create his own masterpiece to a tote bag he can color in with markers.

I love that these Dollar Tree items encourage his love of learning through play, while also not costing me very much at all. Any parent with a kid around his age should check them out.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You may have an easier time building savings in the near term. 

As a general rule, it’s important to have enough money in a savings account to cover at least three months’ worth of essential bills. The logic there is that you might lose your job unexpectedly, and if that happens, it could take some time to find a new one. Having enough savings to pay for three months of bills could help you avoid a scenario where you’re forced to rack up costly credit card debt just to cover your essential costs, like rent, transportation, and food.

But unfortunately, many Americans don’t have anywhere close to three months’ worth of living expenses socked away in the bank. In fact, a recent Bloomberg article referencing a Suze Orman survey found that only one-third of Americans could cover a $400 emergency expense. This means that most Americans are clearly not in a position to get through a period of unemployment, or to cover a large unplanned bill like a major car or home repair.

The good news, though, is that a new rule allows employers to help workers save not just for retirement, but also, emergencies. And it has the potential to be a game-changer.

Employers can now help

It’s common for employers to offer workers the option to sock money away for retirement in a 401(k) plan. But these plans are restrictive in that you generally can’t touch your money until age 59 1/2.

Even if your 401(k) allows you to take out hardship withdrawals at a younger age, you might still face a 10% penalty for removing funds prior to age 59 1/2. And if you’re in a dire enough position where you have to tap your retirement account, that’s a hit you don’t want to take.

But thanks to a new rule known as SECURE 2.0, employers can allow workers to set aside up to $2,500 a year in a non-retirement savings account. That $2,500 can serve as emergency savings — money that can be accessed penalty-free at any age.

Just as importantly, that money will be taken out in the form of payroll deductions, which might help workers better stay on track with saving. Many people struggle to save because they spend their paychecks and then attempt to add to their savings at the end of the month, when there’s little to no money left. This new provision makes it so that workers can have funds for emergency savings deducted from their earnings automatically, before they have a chance to spend down their paychecks.

A step in the right direction

Clearly, Americans have a long way to go on the road to building emergency savings. But the fact that employers can now play a more active role in that is definitely a positive thing.

Not only might this new provision make it easier for workers to build emergency savings, but it might also spare them from having to tap their retirement accounts to cover a surprise bill. And that could spare a lot of people a financial hardship later in life.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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