6 Smart Financial Moves for Hawaii’s Economy in 2025

Living in Hawaii offers a unique blend of natural beauty and cultural richness, but it can also come with financial challenges. The Department of Business, Economic Development and Tourism (DBEDT) revised the state’s economic growth projections for the year downward to 1.7%, reflecting a slower-than-expected recovery in tourism and rising consumer inflation, particularly in housing, food, and transportation costs.

Fortunately, there are steps you can take to strengthen your financial footing. Making smart financial decisions now can help you through Hawaii’s evolving financial landscape, whether you're navigating higher living expenses, rebuilding after hardship, or planning for long-term stability.​

Here are six practical financial moves for island residents.

1. Budget Wisely

The cost of living in Hawaii is among the highest in the nation, especially for housing, groceries, and utilities. Recently announced tariffs may drive the price of goods even higher, so now is the time to revisit your budget. Consider opportunities to push your dollar further, like how to stretch your budget like mac salad at a potluck!

Track your income and expenses using a simple monthly budget worksheet or a budgeting app. Then look for areas where you can trim spending without sacrificing your quality of life—perhaps dining out less often or switching to energy-efficient appliances.

2. Build Emergency Savings

If recent years have taught us anything, it’s that emergencies like wildfires and unexpected job loss can happen without warning. Aim to save at least three to six months of essential expenses in a dedicated emergency fund account.

Even if you start with just $25 or $50 a week, it adds up. Automate transfers to a savings account each payday so it becomes a habit. Bank of Hawaii’s automatic savings features can help make this effortless.

3. Manage Debt Effectively

Rising interest rates increase the cost of carrying credit card debt. If you have balances on multiple cards, consider these options:

• Debt consolidation: Consolidate your debts into a personal loan with a lower interest rate.
• Balance transfer card: Look for one with a 0% introductory APR to save on interest.
• Debt avalanche method: Focus on paying off the card with the highest interest rate first, while continuing to make minimum payments on the others.
  If you have balances on multiple cards, consider these options:

Remember, missed payments can damage your credit score and lead to late payment fees, so set alerts to ensure you never miss a due date.

4. Boost Your Income

Look for creative ways to boost your earnings. That might mean picking up part-time remote work, offering freelance services, or applying for local grants or government assistance.

Need to gain a new skill?  Check out Goodwill Hawaii job training services; the Hawaiian Trades Academy for training in areas like construction, transportation, and PV installation; Na Lima Hana for job coaching and preparedness, and the University of Hawaii Community Colleges Good Jobs Hawaii program.

5. Plan for Retirement

Even in an evolving economic landscape, retirement planning shouldn’t take a back seat. Review your current savings strategy, whether you have an employer-sponsored 401(k) or an IRA, and adjust your contributions if possible. If you’re unsure where to start, a Bankoh Investment Services financial advisor can help tailor a plan to your goals.

6. Leverage Bank Tools

Bank of Hawaii offers a range of tools and services to help you stay in control of your finances, from budgeting and savings lessons to financial planning support. Features like mobile check deposit, account alerts, and secure online banking make managing your money more convenient than ever.

Schedule a free financial check-in at your local branch to review your goals and explore new ways to save, invest, or reduce debt.

Bank of Hawaii: Your Partner in Financial Resilience

At Bank of Hawaii, we understand the economics of island living come with unique challenges, and we’re here to help. Whether you’re adjusting to rising costs or planning for your future, our tools and services are designed with local families and individuals in mind.

Whether you’re looking for online banking with intuitive budgeting features, high-yield certificates of deposit (CDs) to achieve your savings goals faster, or a low introductory rate on a balance transfer credit card, we can help you compare your options to find the right path forward.

Take the First Step Toward Financial Confidence

In a time of rising costs and uncertainty, every step you take to control your finances, from reassessing your budget to building your savings, managing debt, or planning for retirement, creates a stronger and more secure future.

You don’t have to navigate Hawaii’s economic challenges alone. Bank of Hawaii is here to support you with tools, guidance, and financial solutions tailored to local needs. Schedule a Bank by Appointment to meet with a local financial specialist who understands your unique challenges, or explore our tools and resources.

Start today. Your possible is within reach, and we’re here to help you get there.

Investment and Insurance products are offered and sold by Bankoh Investment Services, Inc., a nonbank subsidiary of Bank of Hawaii and a member of FINRA/SIPC.  Investment and Insurance products are NOT FDIC INSURED, NOT BANK GUARANTEED, NOT A DEPOSIT, AND MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL.