It’s not just a feeling. Across the country, city leaders say they’re watching affordability strain their residents in real time.
Nine in ten mayors across the country say the cost of living has worsened in their city over the past year, according to a study by the U.S. Conference of Mayors. The organization surveyed 113 cities across 39 states and Puerto Rico – representing roughly 34 million Americans – between August 18 and September 4, 2026.
More than 95% point to housing costs as the top affordability concern, and 55% cite rising grocery costs as a close second. Mayors report the fallout showing up as higher rents and more demand at food banks.
“Americans are feeling squeezed by the cost of housing, groceries, utilities and other everyday necessities,” said U.S. Conference of Mayors President Todd Gloria, Mayor of San Diego. “Mayors see this every day in our communities, and we’re doing what we can locally to lower costs like building more housing and supporting food assistance programs. But this affordability crisis is a national one and it requires strong federal partnership to fix it.”
That kind of nationwide strain makes the next three months especially risky for household budgets. Between the holidays, year-end spending, and the temptation to put things off until January, it’s easy to let a hard year of financial progress unravel in a few weeks.
This post is part 10 of Consolidated Credit’s 2026 Money Confidence Roadmap, your monthly guide to reducing stress and building confidence with money.
The fourth quarter’s theme is “Optimize, Reflect & Launch Forward Strong,” and it runs through the end of the year: this is the season where intention shapes what next year looks like, rather than rushing through the holidays and starting January already behind.
Set a real holiday budget, and stick to it
Gas prices are up 27.4% over the past year, and overall costs of living are up 3.4%, according to the Bureau of Labor Statistics. That means Halloween, gifts, and travel are all starting from a pricier baseline than last year.
Decide on a total holiday budget before the season gets underway. Build it around what you can actually afford, not what feels expected. A number set in advance is easier to hold to than one figured out mid-shopping-spree.
Skip the new store cards and buy-now-pay-later offers
Consumer confidence is falling as costs keep climbing.
The University of Michigan’s Surveys of Consumers found year-ahead inflation expectations jumped from 4.0% in August to 4.6% in September, the highest reading since June.
That’s exactly the wrong moment to open a new store credit card or a buy-now-pay-later plan at checkout. They feel convenient in the moment, but the obligation outlasts the season.
Pay with a card or plan you already have, stay inside the budget you set, and you won’t start the new year with debt attached to gifts you’ve already forgotten.
Split any year-end bonus between savings and debt
A survey of full-time workers found 54% run low on money before their next paycheck. Nearly three in four face bills due before that check even arrives.
That’s how thin the cushion is for many households heading into the holidays. If a bonus or extra income comes through before the year ends, don’t put it entirely toward one goal.
Split it between an emergency fund and paying down a balance. That builds a cushion for next year’s surprises while still making progress on what you owe today.
Pull your credit report and take stock of the year
Before the year closes out, request an updated copy of your credit report. AnnualCreditReport.com lets you pull your report for free once a week. Look at where you’ve actually improved.
Maybe it’s fewer late payments. Maybe it’s a corrected error, or a lower balance than where you started. It’s easy to focus on how far you still have to go. Take a moment to recognize how far you’ve already come.
Set your money goals for 2027
Use what you’ve learned this year to define specific, realistic financial goals for the year ahead. Confidence in your finances is built through consistent, informed decisions like the ones this roadmap has walked you through all year.
It’s time to finish the year strong and carry that momentum into next year.
