Frugal Friends Podcast: Our 2026 Money Predictions – What’s Coming and How to Prepare

Hosts: Jen Smith & Jill Sirianni
Date: February 20, 2026

Episode Overview

In this lively episode, Jen and Jill take a candid, slightly tongue-in-cheek look at the financial year ahead. They share five major predictions for 2026, addressing common anxieties about the economy, housing, job security, and the rise of AI—while providing practical advice for frugal living no matter what the future holds. Expect their signature blend of humor, realism, and actionable tips as they break down what’s really likely to happen with your wallet in 2026.

Key Discussion Points & Insights

1. Is a Recession Coming?

[02:49 - 05:41]

• Prediction: Despite people always warning about "the next big recession," leading forecasts predict moderate economic growth in 2026—likely 2% to 2.6% GDP growth.
• Implications:
  • This type of growth typically stabilizes jobs and wages, but is “boring” and doesn’t always trickle down to most households in ways that feel tangible; things may still feel expensive.
  • Mass layoffs and credit freezes aren’t expected, but affordability will continue to be a pressure point for consumers.
• Memorable Moment:
  • Jen jokes: “Start hoarding people, because a recession is coming… eventually, probably at a date beyond 2026.” [02:49]
  • Jill: “It can be both expensive and annoying.” [05:20]

2. No 2026 Housing Crash (Unless You’re the Kool-Aid Man)

[05:55 - 09:14]

• Prediction: The perennial rumor of a housing crash is, once again, not materializing for 2026.
  • Interest rates on mortgages are expected to hold steady; no significant drops are expected, with a chance they may even increase into 2027.
  • Home prices will likely hold steady or rise slightly—mirroring GDP's "boring-but-stable" pace.
• Advice for Buyers:
  • Don’t hold out for lower rates; refinance later if rates change.
  • “You can always refinance a home. You can never get that house for cheaper, though.” – Jill [08:59]
• Quote:
  • “For the rest of us who are not large pitchers of Kool-Aid, a housing crash isn’t coming …” – Jen [06:23]

3. Cost of Living Will Rise—But Calm Down

[09:32 - 13:48]

• Prediction: Costs—groceries, healthcare, everyday goods—will continue their slow climb, but at a tamer pace (~2.4% inflation).
• The “whiplash days” of sharp price increases seem to be behind us (barring new global calamities).
• Emphasis: The ‘good old days’ might be gone, but so are the ‘bad old days’—focus on contentment and value-driven spending.
• Notable Quotes:
  • “All the more reason for frugal to be the best F word that you know.” – Jen [12:35]
  • “Don’t just hold out for someone else to rescue you. … Don’t marry a rich man. Be a rich man.” – Jill and Jen swap on this classic Cher quote [13:48 – 14:14]

4. The Job Market Plateau: Fewer Layoffs, Harder to Find Work

[16:38 - 25:34]

• Prediction: Layoffs should ease compared to 2025, but landing a new job will be more competitive amid slower economic growth.
• Stats:
  • Unemployment projected to dip slightly to 4.2%–4.5% (a “normal” and healthy range).
  • Most new hiring will be sector-specific: healthcare, skilled trades, specialized tech, and data jobs.
• Actionable Advice:
  • Always be career-building: Network, update LinkedIn, pursue new certifications, and sharpen negotiation skills.
  • “Our wealth is in relationships… I’m not talking about using people, I am talking about meeting people…” – Jill [23:48]
  • “Your work cannot speak for itself anymore. You have to promote it.” – Jen [23:32]
• Tip: Networking isn’t about schmoozing—it’s about being visible, helpful, and learning within your target field/community.
• Memorable Moment:
  • “We have said this so much over the years, I wish you guys were sick of us saying it: You should always be looking to grow your career in some way…” – Jen [19:06]

5. Will AI Take All the Jobs? (Spoiler: Nope, But Be Ready!)

[25:38 - 32:44]

• Prediction: AI is not an extinction event for most jobs, but will shake up the job market—especially for those unwilling to adapt.
• Reality Check:
  • Yes, AI is already displacing some roles, but like past technological leaps (industrial revolution, the Internet), individuals and entire sectors will adapt and new opportunities will appear.
• Advice:
  • Learn how to use AI and blend digital with real-life networking/skills to “AI-proof” your career; don’t vilify it—understand and leverage it thoughtfully.
• Notable Quotes:
  • “In order to make yourself AI-proof, you need to have a balance of knowing AI and being in real life, doing the networking, building the relationships and doing the skill building.” – Jen [31:53]
  • “You have to know your enemy, which I don’t think AI is the enemy… but you need to know it in order to ‘beat it’.” – Jen [31:53]

Actionable Takeaways

• Don’t wait for the ‘perfect’ market—whether buying a house or changing jobs, act when it makes sense for your life, not based on market rumors.
• Network consistently—not just at official events, but anywhere in your community.
• Keep upskilling, especially in high-growth sectors and with tools like AI.
• Focus on alignment: Make every spending and earning decision consistent with your values, and embrace frugality as a tool for independence in any economic climate.

Notable Quotes & Memorable Moments

• “Start hoarding people, because a recession is coming… eventually, probably at a date beyond 2026.” – Jen [02:49]
• “For the rest of us who are not large pitchers of Kool-Aid, a housing crash isn’t coming…” – Jen [06:23]
• “Don’t marry a rich man. Be a rich man.” – Classic Cher quote, referenced by Jen and Jill [13:56–14:14]
• “You can always refinance a home. You can never get that house for cheaper, though.” – Jill [08:59]
• “All the more reason for frugal to be the best F word that you know.” – Jen [12:35]
• “Your work cannot speak for itself anymore. You have to promote it.” – Jen [23:32]
• “In order to make yourself AI-proof, … you need to have a balance of knowing AI and being in real life…” – Jen [31:53]

Lightning Round: What’s ‘Chopped’ (i.e., Out) for 2026?

[37:20 - 41:02]

• Jill: Being underpaid. "Chopping that. That’s so stupid… I just, you know, I feel like earning a good wage for the work that’s done.”
• Jen: Hustling. “For me, hustle is chopped… That doesn’t mean that I’m not focused on my income… but I’m not hustling.”

Listener Highlight: "Bill of the Week"

[33:20 – 35:07] Jocelyn, a longtime listener, shares her accomplishment of graduating with a master’s degree debt-free and negotiating a $759 medical bill down to $99.

• Jen: “Congrats. Graduating without debt. Congratulations, if you will.” [34:34]
• Jill: “So many phenomenal financial moves happening here.” [35:07]

Closing Thoughts

Jen and Jill wrap up with warmth for their community—reminding listeners that simplification and steady progress (rather than frenetic hustling or panic) is the healthiest response to an uncertain future. They encourage everyone to focus on value, not fear, and keep building lives that are “rich” in every sense.

Useful Time-stamped Segments

• Economic Outlook & Recession Fears: [02:49 – 05:41]
• Housing Market Predictions: [05:55 – 09:14]
• Inflation and Cost of Living: [09:32 – 13:48]
• Job Market & Career Strategies: [16:38 – 25:34]
• The Impact of AI on Work: [25:38 – 32:44]
• Listener Story (Bill of the Week): [33:20 – 35:07]
• Lightning Round (What’s ‘Chopped’ for 2026): [37:20 – 41:02]

Jen and Jill’s tone throughout is supportive, honest, and empowering, mixing data-driven insight with playful banter and motivational encouragement. Regardless of what 2026 brings, “Frugal” remains the best F word in your financial vocabulary!