One in five Americans are using their personal savings to pay for groceries

One in five Americans are using personal savings to pay for groceries, according to a study by the Urban Institute. Rising grocery prices in April, driven by higher fuel costs linked to the Iran conflict, weather impacts, and trade policies, have prompted cost-cutting strategies like 'backwards shopping.' Additionally, 35% of consumers paid for groceries with credit cards in 2025, and nearly 10% used Buy Now, Pay Later services, with one-third missing payments.