4 Smart Ways Women Are Living Frugally Amid Inflation in 2025

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With inflation, tariffs and rising costs reshaping everyday life in the U.S., many women are rethinking how they spend and save. A recent Fidelity study found that 79% of women changed at least one financial habit in the past year to cope with economic uncertainty. Many have embraced frugality and are cutting back in several ways: 42% reduced spending on nonessential activities and entertainment, 36% reduced common everyday expenses, 34% saved more, and 30% reduced spending on travel or vacations.

In this “Financially Savvy Female” column, we’re chatting with Alex Roca, host of Fidelity’s Women Talk Money, to uncover the most effective ways to live well while spending less — and whether these strategies really pay off.

Many women are becoming more frugal as they grapple with tariffs and inflation. What are some of the most effective ways to cut back on spending and save more?

No matter the economic environment, starting anywhere is better than not starting at all. If you’re not sure where to start, think about small changes you can make, like cancelling unused subscriptions or favoring grocery shopping over dining out. Even 1% to 2% more saved each month can make a difference. Every dollar counts when you’re building your financial foundation.

Another tactic is to start investing. This gives your hard-earned money a chance to work harder. There are so many options, whether you’re new to investing or have some experience. For instance, you can try out an option like a robo-advisor that will manage your investments for you.

Lastly, seek out community and education. Fidelity’s Women Talk Money community is a great option. We offer tons of on-demand content and monthly live events specifically tailored to the financial needs of women. Communities like this make you feel less alone and also keep you more accountable in building good habits.

In general, is it more effective to focus on money management or reducing spending in the face of economic uncertainty?

When the economy feels uncertain, it’s completely natural to want to take action — and you’re not alone in that. But before making any big financial moves, take a moment to pause and reflect. Ask yourself: What’s driving this decision? Having a plan that’s built to weather both the ups and downs can offer real peace of mind. It’s not about perfection — it’s about preparation.

On the day-to-day front, small changes can go a long way. Start by getting a general sense of your spending versus your income. You don’t need to track every penny — just understanding your typical habits is a great first step. From there, aim to allocate about 50% of your income to essentials like housing and healthcare, and use the rest to build toward your long-term goals, like retirement or an emergency fund.

If you’re looking for a quick win, scan your monthly statements and pick one or two expenses to pause — maybe a subscription you don’t use often or a service you can live without for now. Even modest savings can add up over time and give you a greater sense of control. The key is to take one step at a time — and know that every step counts.

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