Money Lesson for 2025: Be Aware and Prepared for the “Unaffordable Five”

~ Monday, December 8, 2025 Blog Post ~

By Sheena Ricarte

The soaring costs of basic necessities will continue to outpace household income growth, which makes them truly concerning. [Image source: Unsplash]

I came across a Facebook post asking the audience what important money lesson they learned this year. My answer is to be aware and prepared for the “unaffordable five.” These costs are housing, food and groceries, healthcare, child care, and energy, which keep rising. Consumers in a country mostly belong to the 99% — the working class. You were not born with a silver spoon. Inflation is a fact of life you have to face every day.

The price of daily life is increasing more quickly than consumers’ capability to pay for it. There are many factors driving inflation, which makes affordability the new national anxiety. Life will continue to become unaffordable. The soaring costs of basic necessities will continue to outpace household income growth, which makes them truly concerning. Hence, how can you thrive?

It starts with financial education. By the time you were born, growing up, and getting your basic education, your parents, family, and local government units have the duty to educate you about the costs of the “unaffordable five.” You should be aware that the prices of essential needs — shelter costs (rent and mortgage payments), food and groceries, child care, healthcare, and energy prices — will continue to surge, while high incomes and higher-paying jobs are out of reach for many.

Plenty of factors push consumer prices higher. Hence, as the basic necessities for modern life get more expensive, there’s no other time to commence saving and investing money but today. A comfortable financial life is possible for all families. Yet, they need to get educated about saving and investing at a young age to enjoy a future of ease. As legendary investor Warren Buffett famously cited, “Someone is sitting in the shade today because someone planted a tree a long time ago.”