Looking Back at 2022
December 28, 2022 by Chevron Federal Credit Union
As we approach 2023, we wanted to take a look back at the major events that shaped 2022.
Between rising inflation boosting prices on everyday goods to worries about an oncoming recession, 2022 was a tense economic year. But as we look forward to the year ahead, there were also a lot of important personal finance lessons we learned along the way that can guide you toward a bright financial future.
The biggest news of the year: Inflation
When it comes to finance, inflation was the hot topic of the year and for good reason.
First, inflation is pretty easy to spot. The Consumer Price Index — an inflation gauge that measures the cost of dozens of everyday goods — has seen steady gains (and a few big jumps) in 2022. As of November 2022, the CPI rose 7.1%. And we’ve all felt the squeeze in the last year. Everything from gas prices to grocery store runs have become more expensive, straining many Americans’ wallets.
Second, inflation can be a tricky subject. In fact, when asked, 73% of Americans correctly say that the Fed is primarily responsible for monetary policy. But when it comes to being sure about the Fed’s policy influence on things like interest rates and inflation, only27%find that easy to understand.
Want to know more about the ups and downs of inflation — or the Fed’s attempt to cool it — check out:
- The Fed and Inflation: What You Need to Know
- Perspectives on Inflation 2022
- What is Inflation, and is It Happening Now?
- Inflation Update: What the Rate Hike Means
Going into 2023, we may see inflation rise across some prices. The Federal Reserve may also initiate at least one more rate hike in an attempt to stabilize prices.
Taking action with supercharged savings
Coming off a turbulent economic year and with concerns about a potential recession on the horizon, it is easy to fall into a cycle of worry about the future. But there are several moves you can make as we head into 2023 to keep your future financial plans on track.
One of the best moves we covered in 2022 was increasing your savings. A higher Fed rate can lead to an increase in interest rates for savings accounts and high-yield products. That means you’ll earn more on what you can sock away.
To maximize your savings in 2023, start by considering which savings vehicle is right for you. While savings accounts are a convenient way to set aside emergency funds you may need quick access to, you could earn a higher rate of interest on a share certificate. A share certificate is essentially a “locked” savings account that earns higher interest over a period of time. Another option is a money market account like our MarketEdge Money Market Savings Account, which offers higher rates than a standard savings account.
Want to learn more about savings vehicles to utilize in 2023? Check out:
- 3 Savings Strategies that Make Sense Right Now
- Share Certificates, Money Market Accounts and Savings: How to Choose
Editor’s choice: Why does money look the way it does?
On a lighter note, you carry cash around every day. Have you ever thought about why our money looks the way it does? How do we choose who gets featured on which bill? (Fun fact: Martha Washington was the first — and so far, only — woman featured on U.S. currency.)
Curious to learn more about how our cash comes to be? Check out:
Last year had some bumpy moments. Most of us have felt the squeeze of rising prices throughout the months. As we anticipate what 2023 will bring, we look forward with optimism. This coming year can be the year you start a path toward reaching your big financial milestones with help from your friends at Chevron Federal Credit Union.