The Latest Personal Finance News for March 2025

Inflation Continues to Trend Upward

After a 2.9% annual increase in December, the consumer price index (CPI) inched up 3% year over year in January, according to the U.S. Bureau of Labor Statistics. On a month-to-month basis, the index rose by 0.5%, an increase from 0.4% in December.

Both annual and monthly figures are higher than expected, and January's report marks the fourth consecutive month of increases after falling to a three-year low of 2.4% in September 2024.

Why It Matters

After a few rate cuts by the Federal Reserve to close out 2024, the outlook on inflation has worsened. Still, some experts remain optimistic that the economy will close out the year with inflation below 3%.

That said, further interest rate cuts by the Federal Reserve may be delayed.

What You Can Do

• Learn more about the federal funds rate.
• Look for the next inflation report on March 12.
• Read up on ways you can fight inflation.
• Look for ways to reduce your risks when borrowing money.

Consumer Confidence Sinks to a Four-Year Low

The Conference Board's consumer confidence index (CCI) dropped sharply in February, declining by 7 points to 98.3. This marks the third consecutive month of decreases, as well as the largest monthly decline in the index since August 2021.

The index provides insight into how optimistic or pessimistic consumers are about the state of the economy in the near term. It includes outlooks on business conditions, the labor market, income prospects, the current and expected financial situation, and the likelihood of a recession.

Why It Matters

With rising inflation and uncertainty about the impact of potential tariffs, American consumers are becoming increasingly nervous. While the CCI doesn't guarantee positive or negative economic results, it may still be a good time to reevaluate your financial situation and take steps to reduce your spending, pay down debt and increase your savings.

What You Can Do

• Create a budget and look for opportunities to cut your expenses.
• Take steps to tackle your debt.
• Boost your emergency fund.
• Learn how to prepare for a potential recession.

Income-Driven Repayment Plan Applications Are Closed

Following an injunction issued by the 8th Circuit Court of Appeals blocking the Saving on a Valuable Education (SAVE) plan, the U.S. Department of Education has closed applications for all income-driven repayment plans.

Instead of a formal announcement, the federal agency quietly greyed out application buttons and added a short notice about the decision.

Why It Matters

The decision by the court and the Trump administration may impact millions of borrowers—there were roughly 8 million enrolled in the SAVE plan alone before it was blocked. If you were considering an income-driven repayment plan or you're already on one, you may need to consider other options in the event that these relief options become permanently discontinued.

What You Can Do

• Learn about student loan forgiveness options.
• Read up on strategies to pay off student loans faster.
• Understand other student loan relief options, such as deferment or forbearance.
• Get details about employer student loan benefits.

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score^☉ and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.