The Challenge of Rising Grocery Prices

The cost of living continues to rise, and as we head into 2024, many Americans are feeling the pressure of higher grocery, utility, and housing expenses. To provide some relief, the Social Security Administration (SSA) has announced a 3.2% cost-of-living adjustment (COLA) for Social Security beneficiaries starting in January 2024. This increase, though welcome, may not fully cover the gap created by rising prices for essentials like groceries and rent.

For example, more than 71 million Americans, including retirees and individuals receiving disability benefits, will receive this adjustment. Still, experts warn that the increase may only provide limited relief, especially as inflation affects prices across the board. The average monthly Social Security check will rise by about $50 to $60—better than nothing, but not enough to counter the full impact of inflation​.

Groceries remain one of the most significant household expenses, and even with COLA adjustments, many households struggle to keep up with the price hikes seen over the past few years. In 2023, grocery prices rose by approximately 4.8%, and although inflation has slowed somewhat, food prices remain high, forcing many families to rework their budgets.

This is where tools like Shopden can make a difference. As a shopping list and expense tracking app, Shopden helps families manage their grocery expenses efficiently. By creating and sharing lists with friends, families, co-workers, roommates, etc., they can prioritize purchases and stick to their spending limits, reducing the chances of overspending.

Making the Most of COLA and Budgeting Tools

The 3.2% COLA for 2024 offers some breathing room, but it’s essential to be smart about how this increase is used. Suppose you’re receiving $2,000 per month from Social Security. In that case, the adjustment will give you an extra $64 each month, which can help cover rising food and utility costs—but only if you budget carefully.

For example, your grocery budget is $150 per week. Without a plan, going over that amount with impulse buys or last-minute extras is easy.

Navigating the High Costs of 2024

Despite the increase in Social Security benefits, most households will still need to make tough choices about where to cut back in 2024. Rent, utilities, and groceries are significant budget categories with rising prices. One strategy is to use Shopden’s grocery budgeting app to monitor your grocery spending more closely and compare prices across different stores. By keeping track of all receipts and categorizing purchases, you can see exactly where your money is going and adjust as needed.

Another great feature of Shopden is its ability to track shared expenses. If you live with roommates or family members, using the "shared grocery lists" feature can ensure everyone is on the same page regarding household expenses. This way, you can avoid duplicate purchases and make sure everyone contributes their fair share.

MLA Source

Social Security Administration. “Cost-of-Living Adjustment (COLA) Information for 2024.” Social Security Administration, 2023, www.ssa.gov/cola/. Accessed 23 Oct. 2024.