10 Things That Will Cost You More In 2014 And Stretch Your Wallet

As a follow-up to our previous article on 10 things that will cost less in 2014, we thought we’d burst your New Year bubble with a warning about some things that will cost you more in this coming year. 2014 will be a year that reflects the recovery and upward swing from the recession of the years past, meaning that consumer will be spending more money and prices will be rising as a result. While we may be seeing drops in gas prices and tablets, unfortunately there are going to be some household staples in the coming year that will stretch your wallet—so it’s time to get prepared. Here’s the FinancesOnline list of the top 10 items that will cost you more in 2014:

 10. Food


As any household’s most important investment, it’s important to note that food prices will be rising in 2014 to the tune of 3%, and some foods are expected to rise in price even more than that. Chocolate is one product that you should be on the lookout for rising in price as much as 26% this coming year. A rise in demand for cocoa and a simultaneous shortage in 2012 and 2013 is responsible for this hike in prices. Beef and wheat products are also expected to rise more than 3% in cost in the upcoming year, as much as 6%, because these products are also facing shortages relative to demand. As three staples in any American kitchen, you’re sure to feel these hits to your wallet in 2014, so be prepared!

9. Houses


After a long recession, house prices began to rise in 2013 and are expected to continue in the coming year. If you’re in the market for a house this could be bad news for you, but if you’ve been holding off on selling because of recession complications 2014 might be your best option for going on the market. While we don’t know how much exactly house prices will rise in the coming year, we do know that nationwide the average house price was almost 11% higher than in years past. Interest rates are still in favor of builders which means that both new and previously lived in abodes are in demand given the current climate of consumer optimism.

8. Cars


We saw in the 10 things that will be cheaper in 2014 article that some cars will be cheaper relative to their 2013 prices, but as a general trend car prices will be on the rise. The main reason for the hike in prices has to do with car companies unveiling new looks and models—creative investments that will show both in looks and cost. At least gas prices are still expected to fall, so it’s not all bad for the automobile industry. Just know that there are some cheaper options if you’re looking to buy a car in 2014. That $6,000 cheaper Mitsubishi i-MiEV keeps looking better and better, eh?

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7. Television


Cable and Satellite TV packages are expected to rise in price in 2014, so if you’ve been thinking about making the switch to internet TV only now might be the time. We’re looking at service fee increase of about $2 to $5 depending on your package. While this may not seem like a lot upfront, over time the hike in fees for TV have been very significant: over the past ten years the cost of having a satellite or cable package has risen almost $100. What’s the reason? Content is more expensive to produce than in the past, and you’re paying for it as a viewer.

6. Stamps


Mailing a letter is going to cost more in 2014 than ever before as stamp prices are on the rise. Starting on January 26th one first class stamp will cost you $.49, three cents more than in 2013. At least part of the increase in prices is only temporary, and is just a response to help the US Postal Service recover from a decline in revenue that occurred during the recession starting in 2008. Plus, if you want to stock up on $.46 cent stamps you’ve still got a few days to get to the local post office before the prices change!

5. Loans


And don’t count on any loans to get you out of muddy waters when it comes to finances in 2014—they are going to cost more than ever before too. The Fed is expected to scale back its bond purchasing in 2014 as the US economy continues to improve since the recession. This is great news for the country, but bad news for people trying to take out a loan with a low interest rate. Interest rates on 30-year fixed mortgages in 2014 are likely to increase from the 2013 rate of 4% to 4.9%.

4. College


The price of getting a college degree is still on the rise and not expected to slow down in 2014. For the 2013-2014 school year private schools increased in cost by 2.9% for in-state tuition paying students at public universities, and 3.8% for private school tuition. The average price tag on a college education during the 2013-14 school year is $22,826 for public schools and $44,750 for private schools. All signs point to costs continuing to rise for the academic years starting in the fall of 2014 as well.

3. Flying


The price of an airline ticket is expected to rise in 2014, a response to the approved merger between U.S. Airways and American Airlines. The competition between airlines is declining—and has been for the past few years due to the multiple airline mergers that the United States has seen—and this merger is one of the biggest. Not only is competition declining, but the actual number of flights declines along with the number of airline carriers. Additionally, the Paul-Ryan-Patty Murray budget deal will add another $11 to your round-trip ticket for security costs.

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2. Rent


As the unemployment rate goes down more and more millennials are finally moving out of their parents’ houses and renting places of their own. This means that the demand for housing is on the rise and renters will be competing for low prices more than in the past years during the recession. Expect rent costs to go up in 2014 as a result.

1. Clothing, especially cotton-based


To top off our list that already consists of your most basic human needs, clothing will also be more expensive in 2014. Cotton-based clothing is expected to rise in price about 5 to 8 percent this due to bad field conditions. In fact, even if the field conditions don’t end up being as terrible as the market is anticipating, the psychological effect alone of the anticipated cotton price increase is likely to drive up the costs.

Category: Financial News


  • Avatar Alaine says:

    I’d hang with my house for a while until next year or 2016. The thing about housing market is that it a slow-action market if you monitor this sector for the right signs. Right now all I can see is that prices are moving up because jobs and credits are stable. The subprime crisis didn’t really happen out of the blue. We just ignored the mines leading to it. So hang in there. Next year is even better for selling the roof above you.

  • Avatar RebeccaW says:

    I totally agree TV prices will definitely shoot up. Smart TVs will be the norm, starting this year, and they’re quite pricey. You can still get low-priced sets but that’s really like enjoying your Nokia 5210 today.

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