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

Many Americans are looking for ways to save money wherever they can.

In April, grocery prices rose 2.9%, driven by higher fuel costs tied to the Iran conflict, weather impacts, and trade policies.

More recently, a strategy called backwards shopping has gained popularity as a way to cut costs by encouraging more intentional purchasing. The method is designed to help shoppers avoid overbuying.

RELATED STORY | 'Backwards shopping': A new strategy to cut your grocery bill

As people across the country struggle to make ends meet, a recent study found that one in five Americans are dipping into their savings accounts to pay for groceries.

Thats according to the Urban Institute, a Washington, D.C.-based nonpartisan group that tracks economic and social policy trends annually.

The survey also found that nearly 35% of consumers bought groceries with a credit card in 2025 and paid the balance in full.

RELATED STORY | Eat it or toss it? What the 'best by' date on your groceries really means

It also found that nearly 1 in 10 adults are using Buy Now, Pay Later options to pay for groceries. The short-term financing method allows shoppers to split purchases into smaller payments.

Among those who used Buy Now, Pay Later services for groceries, one in three missed a payment.

Nearly 20% of respondents said they are using savings that were not intended for daily expenses.