Economy and finance expert offers budgeting tips as inflation surges
WILMINGTON, NC (WWAY) — Across the country, many people are doing double takes at dollar signs, as prices go up on many household necessities. This is leading people to develop strict budgets.
A local expert on economy and finance gave tips on budgeting, and people shared their concerns about the impacts the price increases would have on their finances.
“I’ve definitely noticed, it’s been going up. Like even with cars and stuff, I wrecked my car, and I’ve been trying to buy one, and it’s like double the price of what it normally is. It’s really insane. So, –I don’t, ever since COVID, it’s just all of the prices are going up, and it’s kind of ridiculous,” said Zachary Lunsford.
Department Chair of Economy and Finance at UNCW, Adam Jones, says prices are going up on meat, gas, and on new and used cars. he says the driving factor for the spike in prices are supply chain disruptions an increased demand for certain products, and effects of stimulus programs.
Jones says price increases will likely continue over the next year, before stabilizing.
“I think we’re sort of at a tipping point, where a lot of this inflation was driven by the supply chain shocks, but as people begin to expect prices to rise, business owners and consumers, that becomes a self-fulfilling prophecy,” said Adam Jones, professor.
Jones encourages people to develop a budget now, even if they are not impacted by the increase in prices and have money saved for financial emergencies.
“I think there are two important things to think about when it comes to our household budgets. The first, is just start working on a budget. It’s never going to be perfect. Start by tracking your expenses, so you know where your money is going, and then from that you can start to be more active about managing where that money is going,” said Jones.
Jones also advises people to watch for price changes on items they consider necessities in their households, and not be afraid to shop around for the best bargains.