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COVID-19

Why Has the Price of Groceries Increased During COVID-19?

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Price of Groceries Increased During Covid-19

Many Americans are struggling to stay on budget. Widespread unemployment means many households are having trouble making ends meet, for one. However, there are other financial impacts of COVID-19, including rapidly rising grocery prices.

How Much Grocery Prices Have Changed

Prices on many food staples have increased dramatically in recent months. In fact, the one-month price increase was the largest in 46 years, leading consumers to pay an average of 2.6 percent more at the register. The last one that outdid it was in February 1974.

Categories that saw the biggest increases included meat, fish, poultry, and eggs. When it came to eggs, the average price hike was over 16 percent.

However, other food categories aren’t unaffected. The price of apples went up by 4.9 percent, while bread and cookies rose 3.7 percent and 5.1 percent, respectively.

Beyond food, items like toilet paper and certain cleaning and medical supplies also saw rising prices. In some cases, price gouging was an issue, leading to toilet paper being sold for $10 a roll, for example.

The massive spike in demand and fast-dwindling supply created an opportunity to take advantage of desperate consumers. While many areas have laws against such activity, that doesn’t prevent it from occurring, at least in spurts. Consumers who needed those items may have had little choice but to deal with being overcharged.

Why Grocery Prices Are Increasing

In many cases, price increases are the result of a simple principle: supply and demand. Once shelter-in-place orders became the norm, and people began spending nearly all of their time in their houses, meals at home became increasingly common.

This put additional pressure on grocery stores as consumers began buying more items or in larger quantities. Inventory in some categories disappeared fast, a fact that can trigger price increases that serve as an attempt to stabilize product availability.

Additionally, grocers had to compete with each other to get products to replenish their shelves. In some cases, this leads to a bidding war, where the highest offer gets the goods. Then, the grocer raises its price on the product to recoup their investment and still turn a profit.

Shifting Workforce Needs

Price adjustments can also be attributed to shifting workforce needs. Many stores had to hire new customer service workers, shelf stockers, and cashiers in droves, leading them to offer higher pay rates to entice people to apply. In some cases, they also had to have more employees work overtime, which usually involves paying wages at time-and-a-half or more. This led to growing personnel costs, something that commonly is balanced by pricing products higher.

Then, as mentioned above, there’s the issue of price gouging. While not as rampant as it may have been initially, instances of the activity may continue until the situation calms.

Finally, there have been some mild to moderate disruptions in the supply chain. At times, producers had to shut their doors in response to the pandemic. Usually, this had nothing to do with shelter-in-place orders, as these companies easily qualify as essential businesses. The issue actually involved the virus sweeping through production facilities, causing widespread illness in the producers’ workforces and a need to disinfect contaminated surfaces.

For example, two Tyson Foods pork processing plants had to shutter in April. Plant employees tested positive for the virus, and many others feared getting sick, creating issues with maintaining a suitably sized staff to support operations.

Even production facilities that didn’t close, at times, had to operate at reduced capacity. Shipping companies felt the strain as well, delaying the arrival of replacement inventory. When the supply chain is disrupted, price hikes are almost guaranteed.

Are Grocery Price Increases Permanent?

In most cases, the grocery price increases won’t be permanent. Though, it’s important to note that falling prices are dependent on market stabilization or supply outpacing demand.

There have already been signs of this occurring for some products. For example, while eggs saw a massive price increase in April, as of mid-May, prices are moving down. In part, this is due to regulatory changes that allowed some egg producers to send product that would usually go to restaurants to grocers instead. Whether the cost will fall to pre-COVID-19 levels isn’t known, but any decrease is likely welcomed by cash-strapped consumers.

But not all categories are seeing a recovery currently. Pork prices may remain higher for a period, mainly due to the supply chain disruption. The plant closures and production level changes led some farmers to euthanize their animals since they had no place to send them. This decreased the available supply. Additionally, demand for pork exports rose, partially due to African swine fever impacting China’s supply before the coronavirus pandemic began.

Are All Prices Rising During COVID-19?

No, not all prices are increasing in response to the pandemic. Certain categories have even seen dramatic declines as people began to change their plans and habits.

For instance, gas prices tumbled as stay-at-home orders meant fewer people were on the road, significantly lowering demand. Transportation and apparel also had notable declines.

Some prices have also been relatively stable. For example, electricity rose a modest 0.1 percent, while new vehicle prices didn’t shift at all.

How to Keep Your Grocery Budget Under Control

The same techniques for controlling your grocery budget that worked pre-COVID-19 also work today. Stores are still holding sales to entice customers to choose them over competitors, so shopping around is beneficial. Using sales flyers to plan meals can also work.

Additionally, being part of a loyalty program and coupons can help you keep your costs down. In both cases, you may be able to secure discounts or deals on items you need.

It’s also important to be open-minded. Unless you have a specific requirement that makes sticking with one brand a must, consider exploring every option available in a product category, including name-brands and store-brands.

By making a change, you might be able to lower the cost of your groceries. Plus, when you factor in sales and coupons, the cheapest option may change from week-to-week, which is why you should always look before you buy.

 

Are changing prices straining your budget? Do you have any tips that can help people keep their grocery costs down? Share your thoughts in the comments below.

 

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Here Are The Upcoming Changes For Student Loan Borrowers

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Student loan borrowers

There has been a lot of talk surrounding the United States student loan debt over the past few years. Given the additional financial struggles that came along with COVID-19, many lawmakers are looking for a way to help student loan borrowers manage their debt. Here is what that may look like in the months to come.

What Changes Are Coming?

Since the coronavirus outbreak, it has become increasingly clear that there is something fundamentally wrong with the way the U.S. finances higher education for students. Not to mention, 2020 college graduates are entering one of the worst job markets in recent history. The pandemic gave lawmakers a basis for introducing relief programs to the Senate floor.

They have already passed temporary assistance that will waive all interest on student loans until at least October 2020. However, many politicians think more is needed. House Democrats have proposed the zero-interest period should extend through October 2021.

Additionally, the new HEROES Act would give up to $10,000 in loan forgiveness to private borrowers who are struggling financially. Democratic presidential candidate Joe Biden has even gone as far as to say he would forgive student loan debt for any borrowers who attended public college.

The country’s leaders will be meeting to discuss possible changes for student loan borrowers in the coming months. For now, it is hard to say what will happen.

Student Loan Borrowers, Keep This In Mind

No matter what happens with student debt in America, student loan borrowers need to maintain payments up until a decision is made. Putting off payments until a decision is made in Washington regarding a relief program can seriously hurt your finances.

Don’t forget, there are also a number of payment arrangements you can make as well as forbearance options if you are having trouble paying. Call your loan provider to discuss your options if you need help.

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5 Ways Artists Are Making Money During Quarantine

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Artists have always been innovators. While there are certainly established paths for making a living as an artist, more often that not, artists have to work hard to cobble together a solid income. Therefore, it’s no surprise that many artists are making money during quarantine by getting creative.

In particular, many artists are pushing the boundaries of the online digital platform as a means of earning money while stuck at home during shelter-in-place orders. It is fascinating to see the direction art is taking right now, particularly where it intersects with small business and commerce. We could all learn by watching how artists are making money during quarantine.

Here are five key approaches I’ve seen so far:

1. Patreon

Patreon is one of the key platforms that artists use to earn money directly from their fan base. It’s been popular for several years now. I have an account, and although I only earn a little bit from it each month, it really helps my bottom line. I’ve noticed that more and more artists are taking advantage of Patreon as a means of making money during quarantine.

Of course, Patreon isn’t the only way that people drum up financial support from the people who know and love them. Some artists have turned to Go Fund Me or Kickstarter. The difference between the two is that supporters on Patreon commit to continued, ongoing monthly support whereas the other platforms are one-off means of generating a sum of money.

2. Online Performance Art

The means of making money during quarantine that I’m most fascinated by is the growing art of performing online for pay. Many of us have been more active on our screens lately, participating in meetings and celebrations via Zoom, House Party, Facebook Live, and Facetime. While we used these tools in the past, use exploded now that people are stuck at home. The way that artists are innovating in this digital space is fascinating to watch.

Increasingly, performers who can’t do their work in person are figuring out ways of making money during quarantine by performing online for ticket sales and/or tips. I’ve personally bought tickets to several online events and “attended” others that were offered free. For example, I recently went to a multi-room performance art event hosted by Vau de Vire Society, a group that puts on circus, burlesque, steampunk-inspired interactive performance art events in San Francisco. They took their skills online, and I was happy to pay for a ticket to check out the performances.

I also just watched a digital symposium hosted by SOMArts in which a number of different performers spoke about how they are taking their work online. For example, The Stud (a bar and artist collective in San Francisco that typically hosts in-person nightlife events) has begun hosting digital performance art through Twitch. Digital Drag also uses Twitch to create curated “live” streaming drag shows. Attendees pay for tickets, the performers get paid, and it’s also possible to tip any of the performers through their Venmo, Zelle, and other direct-pay accounts.

Seeing a performance on a screen is different from seeing one in person. Performing via screen is certainly different than performing for a live audience. But different doesn’t mean one is better and the other worse. Artists are innovating in very creative ways, making use of the digital space and the tools available for it to do new things that they couldn’t do on stage with their art. It’s not just a way of making money during quarantine; it’s a way to push creative boundaries that might extend into new forms of art in the future, even when COVID restrictions are completely lifted.

3. Hustling Up New Work

Working artists are good at the hustle. In other words, they are driven to create and in order to make enough money to create, they also work hard. Artists continue to do that today. Sometimes it’s in the same way as before, sometimes it’s in new ways. Some of the ways that artists I know are hustling up new work online include:

  • Opening up new online stores and/or refreshing stock in existing online stores
  • Refreshing blog content and working on getting ad revenue from their artist websites
  • Refreshing their resumes and coming up with new material to showcase on their websites as they look for new online freelance art opportunities
  • Freelance writing about their experiences as artists trying to make money during quarantine
  • Developing classes (or applying for existing work as art teachers) to teach others their skills
  • Self-publishing art and writing materials

4. Artist Grants/ Emergency Funding

Despite the fact that artists are innovating and hustling, many do find themselves without enough income right now. Luckily there are a lot of artist grants and emergency funding sources that people can apply for. Low-income artists, artists facing immediate emergencies, and artists in minority groups often get first priority. However, many of these grants are open to any working artist in need.

A few examples of some of the emergency grants and COVID-era funds for artists include:

5. Street Art and Mural-Making

While many of the ways that artists are making money during quarantine do take place in the digital sphere, I wanted to emphasize that there are still other options. For example, I live on a busy street in San Francisco. All of the retail stores have been boarded up for about two months since the shelter-in-place orders went into effect. Graffiti / street art cover many of those storefronts. While that doesn’t pay the artist’s bills, they do include their Instagram handles on the art images so that they can generate a following online which can translate to money down the line.

Moreover, some stores hired independent artists to professional paint the boarded-up windows. I particularly love seeing these pieces. They are big and bold. They add beauty to the street. More than anything, they are a nice collaboration between small businesses, local artists, and the community. Plus people pay the artists to do the work, which they can do while maintaining proper social distancing protocols. It’s a win-win way that artists are making money during quarantine.

What do you see as the most innovative ways for artists to make money during quarantine? 

Working From Home is Here to Stay (Even After COVID)

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working from home

There have been millions of people put out of work due to the COVID-19 pandemic. If you’re not laid off, you’re probably working from home. While many remote workers are just happy to be able to continue their jobs, many of them are still looking forward to eventually returning to the office. However, that may never happen.

The Future of the Workplace

The global coronavirus pandemic will undoubtedly have a profound impact on multiple facets of life, including the workplace. And business certainly hasn’t been as productive since all of this started. According to CNN, 71% of employers are struggling to adjust to remote workplaces. Sixty-five percent of employers said maintaining employee morale during this time has been a difficulty as well.

So, how will all of this change the future of the office?

Well, unsurprisingly, many more people will be working from home. Around 64% of Americans are already working from home in some capacity as it is, but you will begin to see more businesses allowing employees to work from home more often. Once leases are up, some companies may choose to eliminate their office spaces altogether.

Those looking to maintain a physical workspace will likely have to make huge changes to the traditional office to keep a physical distance between coworkers. Many offices will get rid of shared workspace and return to closed-off offices and cubicles.  As quickly as the coworking space was born, it may be stripped away.

Tips for Working From Home

A key component to being a productive remote worker is being able to adapt to changes as they come. In the current environment, it is safe to say most people are able to adapt to change on some level. But, many employees and employers are having a difficult time adapting to this change. Once you start working from home full-time, you should employ some of these tips to help your workload stay on track.

  • Set a schedule for yourself. Having a set schedule will help you maintain productivity. Get up at the same time, get dressed, have breakfast. This will motivate you throughout the week.
  • Make sure you check-in. A daily check-in with a coworker is always a good idea, especially if you’re missing the camaraderie of the office. Set up a quick Google Chat or Skype check-in to see how things are going.
  • Use virtual tools. There is an endless number of tools to help remote workers. Do some research and see what will integrate well with your devices. Google Suite can do wonders with helping you stay organized.
  • Designate a workspace at home. Don’t just crawl out of bed and mosey to the couch. Consider setting yourself up in an office at home. If you don’t have office space, be sure you set up a space that feels like a workspace before getting started.
  • Turn off the distractions. Namely, your smartphone. When you were in an office, you could be seen messing around on your phone (or otherwise). While you’re at home, do everything you can to eliminate these distractions by turning on do not disturb or other notification silencers.

And if you need a few more, check this out…

One thing is for certain. All of this will pass with time. The job market in the United States is no stranger to crisis. Roll with the punches and keep pushing forward.

Readers, how are you handling working from home?

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Where Did My Stimulus Money Go? And Will We Get Another Payment?

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I mentioned recently that I had been wondering where my stimulus check was? I ended up receiving it in the mail. Apparently since I file my taxes through TurboTax, the government didn’t have my direct deposit information on file. I was grateful to receive that stimulus money. However, I live in the state of California. That money is already long gone. Here we are in a new month and, like many people across this nation, I’m wondering if we are going to receive another payment.

Stimulus Money Goes Further In Some States Than Others

As most of you are well aware, the government issued stimulus money for many citizens in response to the COVID-19 financial challenges. Individuals earning less than $99,000 (or couples earning less than $198,000 combined) were eligible to receive the first round of stimulus money. The amount was $1200 for many people with a smaller amount for those earning between $75,000 and $99,000. Parents received additional small payments per child.

I am grateful that I received that $1200. There are some people who still have not received that first stimulus check. I was lucky to get mine. I needed it for bills. But the fact is that $1200 goes a lot further in some places than in others. This money is supposed to help people pay their rent and other bills. My rent for my one-bedroom San Francisco apartment is nearly $1900. That’s a lot lower than it would be if I had moved into my place more recently; I’ve got rent control in a spot I’ve been in for over eight years. Nevertheless, you can do the math. $1200 in stimulus money left me $700 short of rent. It certainly didn’t leave anything for other critical bills.

The States Where Stimulus Checks Stretch Most and Least

I am fully aware that I live in one of the most expensive cities in the country. In fact, the cost of living is high across the whole state. In a report from USA Today, California ranked second in a list of places where stimulus money goes the least far. Other states where a $1200 stimulus check doesn’t even cover the average rent or mortgage payment include Massachusetts, New York, New Jersey, and Hawaii.

In states where rents are lower, people can get by better with the $1200 (or $2400 for couples plus $500 per child). The five states where stimulus checks will stretch the furthest are Mississippi, Arkansas, Oklahoma, West Virginia, and South Dakota.

Will Americans Get More Stimulus Money?

The government acted quickly in the face of COVID-19 to get billions of dollars in checks out to American citizens. But, as the numbers above suggest, it might not be enough. Many people, particularly in states where the money doesn’t stretch so far, aren’t sure how to keep paying the bills. In states that continue to shelter-in-place, a large percentage of people simply can’t go to work. That leaves a lot of us wondering if Americans are going to get more stimulus money.

Chances Are That Yes, We Will Get Some Type of Help

There is a lot of conflicting news about whether or not we will receive additional stimulus money. Lawmakers are extremely divided about if, how, and when to release a second stimulus check. That said, most reports indicate that some type of additional assistance is likely in the near future.

Just what that looks like remains unclear. Generally speaking, Democratic leaders are in favor of issuing more stimulus money and doing so quickly. In contrast, Republican leaders are calling for a slower approach, releasing less money perhaps to fewer people. Overall, it’s starting to look like the next round of assistance may take a form other than a direct check to Americans.

Suggestions on the Table for More Stimulus Money

Here are some of the suggestions lawmakers are considering when it comes to giving Americans more stimulus money:

$2000 Per Month

Two different proposals exist that would give Americans earning less than a certain amount the right to receive $2000 checks every month:

  • California’s Ro Khanna and Ohio’s Tim Ryan are calling for anyone over age 16 earning less than $130,000 to receive a $2000 check every month during the pandemic
  • Michigan’s Rashida Tlaib and Washington’s Pramila Jayapal have proposed the Automatic Boost to Communities Act which would give every American $2000 per month throughout the duration of the pandemic. Moreover, it would give $1000 per month to every American for one year after the pandemic ends.

Many Americans would love to see these suggestions enacted. However, as of the writing of this post, Republican leaders aren’t on board with giving out this much new stimulus money. In fact, they don’t want to give out direct stimulus checks at all. Therefore, these monthly checks seem increasingly unlikely.

Stimulus Check Tied to Payroll Tax Cut

President Trump is calling for a payroll tax cut. In other words, he wants to give a tax break to businesses as part of the next round of COVID-era relief. Some reports indicate that he supports indicate that he may be willing to support a direct stimulus check to individuals (amount unknown) if it is tied to a payroll tax cut. Other reports indicate that he wants to discuss a payroll tax cut first, leaving the direct stimulus check out of the conversation.

Expanding Aid to States

Increasingly it seems that the conversation is turning towards expanding other aid programs including money from the federal government to the states. Even the Democrats are turning their attention to the immediate need for further assistance with food stamps and unemployment funding. Many argue that this money is as critical, if not more so, than a second stimulus check. Moreover, it’s likely to receive more support from Republicans than a call for more direct stimulus money.

What to Do While We Wait to Find Out More

Things are up in the air right now. We simply don’t know if we are going to get more stimulus money. We can’t count on it. So, what should we do in the meantime? If you are struggling to make ends meet during COVID-19, review all of your options for relief. Check with your lenders about mortgage forbearance, skipping a month of payments, and other hardship options. If you qualify, apply for unemployment assistance and food stamps. Hang in there. The lawmakers are working on it, despite the fact that they are divided on how to proceed.

 

Should You Be Shopping For Nonessential Goods Right Now?

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nonessential goods

Most of the United States was shut down throughout the month of April. Despite this, many people hit online stores to shop for nonessential goods during the pandemic. Is now the best time to be buying these items?

Essential vs. Nonessential Goods

The COVID-19 pandemic has made many of us question what is (and is not) essential when it comes to purchasing things. Most of us aren’t leaving the house to buy a new treadmill right now. However, because so many people are stuck at home, online retailers are holding sales, and many folks are buying things they normally wouldn’t.

According to U.S. News & World Report, there was an increase in book and magazine purchases by 292%. Video games and baby/kids items also saw an increase of 140% and 150%, respectively. While these items aren’t necessarily essential, they are making it easier for people to pass the time indoors.

When it comes to deciphering the difference between essential and nonessential goods, it will differ from person to person. For instance, some individuals may not see buying a new computer monitor as a necessity, but if your computer stopped working and you need it to make a living, it is.

Should You Be Making Nonessential Purchases?

There are two concerns when it comes to shopping for nonessential goods right now. Obviously, there are some health concerns (everybody is concerned about their health right now). There is also an additional financial aspect to be considered as well.

Any time you’re making a nonessential purchase (even outside of pandemic times), you are more likely to stop and browse more nonessential items. This means you’ll spend more time in the store, exposing yourself to more surfaces and germs. Not to mention, it is fairly likely you’ll spend more money than you meant to.

Many people are also receiving stimulus checks and other government assistance that may be considered “extra” money right now. If you’re thinking about using your stimulus check on nonessential items, be sure you have your finances in order first. Ensure you have an adequate emergency fund and essentials before using it for anything else.

When it comes down to it, deciding whether or not you will go to buy nonessential goods will depend on how much you feel you need the item. It is important not to forget to protect your own financial future and security as well. Don’t allow your desire for an item hurt that! 

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