Energy Costs Are Surging: Simple Budget Moves for Young Workers and Renters
Energy bills could take a bigger bite out of household budgets this summer.
The latest Consumer Price Index showed energy prices jumped 23.5% over the past year and accounted for more than 60% of May's overall increase.
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Higher energy costs can ripple through a budget quickly, particularly for young workers and renters with little room for unexpected expenses.
Here are six budget moves to consider as energy costs continue to climb.
Track Energy Spending
Start by creating a separate category for energy costs. That includes electricity, gas, public transportation and any other expenses tied to getting around or keeping a home comfortable.
A quick look at the latest inflation data shows why.
May's Consumer Price Index report showed overall energy costs jumped 23.5% over the past year, while electricity prices rose 5.9%. In addition, J.D. Power reports the average residential electric bill reached $186 per month during the first quarter of 2026.
Knowing where the money goes makes it easier to decide where to cut back if bills keep rising.
Cut Cooling Costs
Air conditioning is one of the biggest energy expenses in many households.
According to the U.S. Energy Information Administration, cooling accounts for about 19% of the average home's electricity bill.
That makes cooling costs a good place to start when looking for savings. Closing blinds during the hottest parts of the day, using ceiling fans and raising the thermostat a few degrees when no one is home can help reduce electricity use without making a space uncomfortable.
Small changes can add up over the course of a long summer, especially as electricity prices continue to climb.
Get Outside
Summer activities don't always require spending money indoors.
Parks, public pools, beaches, walking trails and community events can provide a break from the heat while reducing the amount of time air conditioning is running at home.
Spending part of the day in outdoor or shared spaces like a coffee shop, movie theater, or museum may not seem like a budget move. But it can help limit energy use during the hottest months of the year. It also turns saving money into something a little more fun while beating the heat.
Keep It Local
Before making plans across town, look for options closer to home. A nearby restaurant, coffee shop, gym or event can offer the same experience without the added transportation costs.
There's a financial reason to think locally this summer. Gasoline prices increased 40.5% over the past year, according to the latest Consumer Price Index.
Higher fuel costs don't just affect drivers. They can also influence rideshare fares, delivery costs and other transportation-related expenses.
The goal isn't to go out less. It's to spend less getting there.
Use Included Amenities
Apartment amenities can provide a change of scenery without adding another expense to the monthly budget.
Work from the co-working space. Meet friends in the community room. Read by the pool.
An Apartments.com survey found amenities play a larger role in rental decisions for Gen Z than they do for renters overall.
As energy costs rise, those spaces can deliver an additional benefit. Every hour spent working, relaxing or socializing in a shared space is one less hour spent cooling an individual apartment.
Build a Utility Buffer
Saving money is already a priority for many Gen Z adults. A recent Bank of America survey found 66% have savings, up from 60% in 2024.
Setting aside a little money for summer utility bills can give those savings a specific job. Instead of scrambling when a higher-than-expected electric bill arrives, the money is already there waiting for it.
That can make it easier to stay focused on bigger goals instead of getting sidetracked by rising energy costs.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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