Americans are beginning to feel the pinch from President Donald Trump's tariffs, prompting many to find new ways to cope with rising prices.
Ruth Washburn makes memory bears, quilts and pillows to help pay her monthly bills.
A new survey from Clarify Capital reveals how Americans are absorbing tariff-induced price hikes: 59% are cutting back on spending, 41% are switching to cheaper brands, and 39% are taking on side jobs.
"People are using this money for spending money. It's not necessarily for savings or debt pay-off; it's more about paying the bills," said Ted Rossman, a senior industry analyst at Bankrate.
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Bankrate's research found that 36% of Americans had side hustles in 2024, contributing an average of $891 to a family's monthly budget.
This extra income could help cover costs for groceries, gas and clothes — the three categories where consumers report the largest tariff price increases.
In addition to side gigs, Clarify Capital indicated that Americans are saving money in other ways: 70% are cutting spending on non-essentials, 49% are stockpiling goods, and 32% are delaying savings.
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The study also found that more Americans are relying on credit cards or taking out loans to manage higher costs, contributing to the record amount of debt in the U.S. According to the Federal Reserve Bank of New York, the nation's debt balance reached $18 trillion in the fourth quarter of last year — the highest total on record.
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