Woman over 55 planning out budget to save extra money
As you age, some things get more common—like back pain and greying hair—while others seem to disappear. Money falls into both categories. Many older adults see a decrease in monthly cash flow but an increase in bills—especially higher medical costs. Considerable debt and a lack of personal retirement savings also contribute to the stress of managing your money once you enter your golden years.
If you’re one of the over 17 million older adults (65+) who have experienced financial difficulty or are economically insecure, you know budgeting in a constantly changing economy isn’t easy. There’s something for everyone, from tech-savvy seniors to those who prefer paper and pencil couponing. But with so many gimmicks out there that claim to help you cut costs where you can, what are some legitimate ways to reduce how much you spend?
Here's how to save money on your shopping at 55+.
1. Take advantage of senior discounts.
Everyone loves a discount, right? For people over 55, taking advantage ofsenior discounts is an effortless way to shave a few dollars off your total. Here’s a list of some deals to watch out for:
Kohl’s: On Wednesdays, save 15% off your in-store purchase
Michaels: Save 10% off your purchase (in-store and online) with your Michael’s rewards account on Tuesdays
CVS: Use your ExtraCare card to get 2% back in store credit on in-store or online purchases
AMC Theatres: People 60+ get discounted movie tickets at some locations
Hertz: Join Hertz’s Fifty Plus Program to save on car rentals
2. Stick with generic products.
Buying brand-name products isn’t always the best choice, especially if you’re 55+ and looking to save money. Even if you’re skeptical, trying out the Great Value loaf of bread instead of Nature’s Own doesn't hurt. If you don’t like it, reevaluate and figure out another food you can buy generic. Sticking with the cheaper option is a simple way to avoid overpaying for a more expensive brand name. People in the grocery industry say that, in most cases, you can’t tell the difference between generic and name-brand items in the grocery.
3. Use digital coupons.
Most stores have apps or websites where you can use coupons to save you more money on your total purchase. Digital coupons take away the hassle of carrying around paper coupons, but come with the risk of experiencing technical difficulties at checkout. In most cases, these coupons are stackable with cash-back rewards. These apps are easy to use with a small learning curve, making it easy for non-tech-savvy seniors.
4. Use Cash Back apps.
You don’t have to be fluent in using a smartphone to save money with cash-back apps. A few cents can turn into hundreds of dollars with dedication, receipt-saving and coupon clipping. Ibotta is a popular app that features cash-back offers at most major retailers, both in-person and online. You can even pair your membership accounts with the app to automatically earn cash with your saved offers. The best part? You can transfer your earnings directly to your bank account. Other apps like Fetch have you scan your receipt to accumulate points and earn gift cards.
Related:125 Creative Ways To Earn Extra Money in 2024
5. Talk to a financial advisor.
Depending on how many assets you have, talking to a financial advisor can be the gateway to better managing your finances. Typically, financial experts recommend reaching out to an advisor once you have $50,000 or more in investments or savings. They will also help you reach future financial goals and help you plan for unexpected financial challenges. If you want to avoid getting a biased opinion, talking to a fiduciary is your best option to start working toward saving money and improving your financial health.
6. Invest in an AARP membership.
You're missing out if you’re over 55 and don’t have an AARP membership. Senior membership associations like AARP partner with well-known businesses to offer perks, ranging from hotel discounts to cheaper car insurance rates. Most of these organizations require you to pay an annual fee, but it usually pays for itself if you regularly use your membership card to get discounts.
7. Join store memberships to use loyalty rewards.
Check to see if your local stores have loyalty programs. These rewards give you extra coupons and store credit for making purchases, getting flu shots or filling prescriptions.Kroger has one of the most well-known loyalty programs, with the to earn fuel points for cents off your gas price per gallon; for every dollar you spend, you get one point. Kroger’s website even claims that using their program will save you an average of $576 a year.
Related:Insider Tips on How To Save Big at CVS, According To Money-Saving Experts
8. Shop during designated senior times at the grocery.
Large chain stores like Walmart, Target, Kroger, Aldi and Dollar General offer designated times for senior shopping—usually during the early morning. It’s the perfect time to get your household essentials without the usual crowded aisles and long lines, alleviating the stress of grocery shopping and getting you the best deals first.
9. Review your monthly expenses.
Reviewing what you spend in a month is one of the first steps you can take to start saving money on your shopping at 55+. When you retire, you may begin living on a more fixed income, which means being more careful about your spending. Make a list of all your bills and potential expenses in a month to start managing your finances more effectively.
10. Browse the aisles with a friend.
Although shopping with friends is usually associated with impulse buying, there are ways it can minimize how much you spend on things you don’t need. Choose a shopping partner willing to hold you accountable if you tend to buy whatever sparks your fancy. When your friend chimes in with a “Do you really need that?” view it as an opportunity to save money.
11. Identify bills you can lower and contact the service provider.
We’ve all seen the memes of people screaming at customer service agents over the price of their bill. While it’s obviously unreasonable to start an argument with your provider over your home internet, there are advantages to calling them and seeing if you can negotiate a lower price. Ask about any specials they have going on for returning customers or how you can cut down on services you don’t use as much. For example, is there another cable package that still offers the channels you like but isn’t as expensive? Also, don't be afraid to switch if another provider has a lower price.
12. Research an item’s quality before making a purchase.
Before making a purchase, do your research and ensure you’re buying something high-quality. Reading reviews is another effective way to reduce your chances of spending money on something that isn’t worth it or won’t last as long as you need it to. Plus, there’s nothing worse than making repeated trips to the store to replace items—which is more costly than investing in a higher-priced item. It’s important to note that this isn’t feasible for everyone. Shop within your means and get the best quality for your household budget!
13. Make a budget.
Creating a budget isn’t easy, especially if you’ve been able to handle your finances without one up to this point. Start by analyzing your finances and get a total of your monthly bills and an average monthly income. After that, allocate enough money to cover bills and categorize what’s left over. When you better understand your finances, you can spend your hard-earned money intentionally and avoid debt.
14. Prioritize paying off high-interest debt.
Did you know that in 2019, the average debt of a Baby Boomer (people aged 56-74) was over $95,000? Or that around 9% of adults 65+ have significant medical debt? Since older adults are more at risk for health problems and are more likely to be hospitalized than their younger counterparts, it’s easy for things like medical bills to start piling up. Add that to other expenses, and you have an unreasonably high monthly debt bill. When budgeting, prioritize paying off high-interest debt from credit cards to avoid paying unnecessary interest on your debt.
Related:Is It Better To Save Up for Retirement or Pay Off Debt? Financial Pros Weigh In
15. Use community resources when you need them.
Nonprofits and community-focused organizations offer assistance for rent, utilities and other housing expenses that are often difficult for seniors on fixed incomes. Your local senior center is also a good resource for resources and social activities. However, there is a stigma against using community resources like food pantries or contacting your local Community Action Council. Since most Americans (regardless of age) don’t have enough savings to cover an emergency, which is about three month’s worth of income, it’s nothing to be ashamed of.
16. Talk to a Medicare broker.
Medicare brokers are insurance professionals who can help you find the best plan for your needs. This service is free for any Medicare recipient, saving you the time of searching through thousands of available plans and the frustration of signing up for the wrong one. Finding a broker is easy—just visit medicare.org or contact the National Council of Aging.
17. Cut back on your travel spending.
Instead of automatically booking a first-class trip, research to see if you can travel more economically. That doesn’t mean you have to sacrifice comfort and luxury; after all, it is your retirement. Here are a few more tips:
Book your tickets and excursions as early as possible to get discounts.
Watch for holiday sales.
Look at high-value vacations like cruises.
Travel on days of the week when prices are lower, like Sunday or Monday.
Related:You Just Might Want To Plan Your Next Vacay in One of These States That Has No Sales Tax
18. Find out what benefits your health insurance offers.
Medicare health insurance providers often offer unique benefits to seniors to help them keep up with their health without financial burden. Silver Sneakers is an exercise program that covers a gym membership, online fitness classes, and workout videos. If you qualify, you can access all this for free.
19. Be mindful of your utilities.
One of the easiest ways to reduce your monthly spending is to watch your energy use. Utility bills can easily spike during season changes, like when you’re ready to crank up the heat during winter or set the thermostat to 64 when the weather gets warmer. Using energy-efficient household items (appliances, light bulbs, etc.), unplugging unused devices or chargers, and performing regular home maintenance like testing doors and windows for cracks or leaks are all ways to be mindful of your utilities and save money.
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