Building Wealth Viridiana Montero is desperate for diapers...
The San Diego resident is a mother of three and works full time in a kitchen. Half her income goes to rent... Add in utilities, car payments, and food, and there's not much left to cover her daughter's heinie.
Montero uses more than $100 worth of diapers every month.
That's money she often doesn't have.
So when she learned that the Logan Temple AME Zion Church gives out free diapers, she became a regular at the church's weekly Saturday giveaways.
Countless families are in the same situation as Montero. It boils down to a diaper crisis in America...
Doing simple math, babies use up to 10 diapers a day, which adds up to 300 a month. The average cost of a diaper is roughly $0.30, so monthly diaper bills can top $100... and that's per kid.
If that sounds a lot higher than you remember, you're not wrong.
Diaper inflation is real.
According to the research firm NIQ, the average package of disposable diapers cost $16.54 as recently as 2019. Now, the average price is around $21.90. That's a 32% increase on a necessity.
Here's a chart from Bloomberg showing the price increase...
Understandably, this price jump has put pressure on families. According to the National Diaper Bank Network, a nonprofit that helps groups collect and give out free diapers to those in need, 47% of American families struggled to afford diapers in 2023.
A few parents will attempt to potty train their children early to cut diaper costs... something Montero told Harvard Public Health magazine she was interested in trying. Others may risk diaper rash, infections, disrupted sleep, and soiled clothes by stretching the life of a dirty nappy... or experiment with the inconvenience of cloth diapers.
But for most people, new disposable diapers aren't optional. They might have to stand in line at a church for a donation, go into credit card debt, or dial back their other purchases. But when diapers get dirty, they change them... And when their supply runs out, they get more.
There's no one solution to end this diaper crisis. Roughly 225 diaper banks across the country try to help needy families... And other charities sometimes pitch in. But that's often not enough.
In the coming months, we're going to see efforts on both sides ramp up for this year's presidential election. Of course, we're going to hear typical "politician speak," mostly dancing around important issues that affect everyday Americans. But even the best politicians can't avoid the real issues for long...
Americans want solutions, not long-winded rants.
As we talked about last Wednesday, Americans are starting to feel the pain because of higher prices. Families can't even afford diapers for their newborn babies for goodness sake.
Even with stocks at all-time highs, things don't feel all that great. Many families are carrying a credit card balance much higher than in previous years.
We'll see if this election can bring some change to help the everyday family. But we don't put too much faith in that.
One thing we know for certain is that the election will, once again, bring division to our country. And according to my friend Marc Chaikin, this election has the chance to affect your investment accounts and retirement funds.
Marc is going live tomorrow at 8 p.m. Eastern time with his prediction. Today is the last day to make sure you reserve your spot to his presentation by clicking here. The event is 100% free to attend.
What We're Reading...
- Something different: Even Warren Buffett understands the nightmare that can be homeownership.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
February 28, 2024