Financial planners share how to keep saving money even if Trump's tariffs make life more expensive

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• Rising inflation and President Trump's tariffs could leave you spending more on necessities and less on saving.
• Certified financial planners share tips on how to keep your savings goals strong.
• Using high-yield accounts, investing, and focusing on your needs can all help your savings grow.

President Donald Trump has started imposing tariffs in February 2025. Trump has instituted tariffs on steel, aluminum, and products from China. He's also announced tariffs against Canadian and Mexican goods, which have been delayed by a month after reaching deals with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

These tariffs could have inflationary effects. Inflation rates were already higher than expected in January, with the consumer price index reporting a 3% year-over-year inflation rate instead of the expected 2.9%. If tariffs make inflation worse, you could see a significant impact on the prices of goods and services, leaving you with less money to put toward savings goals.

If you're concerned about rising prices affecting your savings goals, here are three tips from certified financial planners to help you push back against inflation.

1. Keep your short-term savings in a high-yield account

If you aren't doing anything with your savings, inflation can slowly erode their value.

"Inflation is the rate at which the cost of living is going up," says Gloria Garcia Cisneros, CFP® professional, wealth manager at LourdMurray.

If the inflation rate is 3%, that generally refers to how much more expensive goods and services are compared to the previous year. When the CPI says that January's inflation rate was 3%, it's reporting that, on average, goods and services were 3% more expensive in January 2025 than they were in January 2024.

This means that, if you're keeping all of your money in a low-interest account such as a checking account, you're actually losing money over time because your savings aren't keeping up with inflation.

"Your money is really deteriorating over time," says Valerie Rivera, CFP® professional, founder and financial planner at First Gen Wealth. She says it might not feel like it, but in reality, your money is losing purchasing power if it's not keeping up with inflation.

For short-term savings goals, such as saving up for a yearly vacation, it's important to keep your money in a high-yield savings account with an interest rate higher than the current inflation rate to ensure you're not losing money.

Most of the time, you won't find savings accounts with high enough rates at traditional banks. "You're primarily going to find the best rates online. They're not going to be the big brick-and-mortar banks," says Rivera. She says that online banks are your best bet for getting a high rate.

For example, the Varo Savings Account offers 2.50% to 5.00% APY. Other strong high-yield savings accounts from online banks include Openbank High Yield Savings (4.75% (vary depending on location) APY), which is offered by an online branch of Santander Bank, and Pibank Savings (4.60%APY).

2. Invest long-term savings to earn a higher rate of return

While short-term savings goals work well with deposit accounts such as high-yield savings accounts and money market accounts, longer-term savings goals are a better fit for investments.

"If you have money available that you don't need for at least two years plus, that's money that is potentially open for investment, whether in a brokerage account or a retirement account," says Rivera. "Anything that you might need in two years or less really doesn't belong invested in the market."

While high-yield savings accounts will generally give you around 3% to 4% annual percentage yield, long-term investments tend to have a higher yield. Garcia says that investments longer than five to seven years tend to have average growth rates of around 8% to 10%.

And while investing can seem stressful, there are ways to earn high yields without a lot of hassle. "I think most people who are just starting off don't need to worry and put that stress on themselves — you're not doing this for a living," says Garcia. "Robo advisors are a really great option, super low cost, and that means that you don't even have to go in when you send money to invest it. They're already doing it for you."

3. Reassess your current budget, but don't let headlines control your finances

As inflation rises, it might make sense to go back to how you're budgeting to figure out places you can save money.

"When's the last time you thought about what you spend your money on? What categories are you spending on?" says Garcia. "You can get prepared in that way because now you have awareness," she adds. Even if you don't make those cuts now, you're aware of how you can cut expenses in case the economy gets worse.

In terms of what budgeting apps or tools you use to budget, Garcia says that consistency matters more than method. "If pen and paper work for you, because that's how you get it engrained, do that. If you have envelopes, do that. If you're really good with Excel, do that," says Garcia. "If you're young and you love apps, there's things like YNAB or Monarch Money," she adds. "I don't care the method you use; as long as you're consistent, that's what's going to make the difference."

With that being said, both Rivera and Garcia say to avoid letting headlines drastically change your financial plans.

"Sometimes the news and headlines, especially during the next four years, might induce some fear, and we often have emotions lead to action. But remember that your goals are yours," says Garcia. "Don't make long-term decisions based on short-term things that are happening," she adds.