By Alex Moore
It’s February, which means most of the United States is in the dead of winter. This makes home heating an essential, yet painful cost. Heating the average American home will cost $941 this winter, up about 8.7 percent from last year. Summer is not much better, with the average cost to cool a home from June to September estimated at $719 in 2024, or 8 percent higher than the prior year.
For seniors on fixed incomes, this means economic erosion. Social Security’s last three cost-of-living adjustments (COLAs) were 3.2 percent, 2.5 percent, and 2.8 percent in 2024, 2025, and 2026, respectively. Utility costs are going up faster than Social Security benefits, so it’s essential that you act to minimize the damage to your budget.
Seal Air Leaks
When air leaks into or out of your home—through the walls, doors, floors, roof, and anything else you can think of—it makes your HVAC systems work harder to keep your home cool or hot, depending on the season. The EPA estimates sealing air leaks would save the average homeowner about 15 percent on energy costs for the year. If we combine the heating and cooling costs listed above, that’s about $250.
If you reduce your home’s air leaks, the Department of Energy says you can start seeing a return on your investment in less than one year. The agency highlights applying caulk to seal cracks around doors or window frames and weatherstripping tape to parts of your house that move, such as doors or windows themselves. Some companies offer services to address air leakage; this can also be a high-impact DIY project.
Invest in a Smart Thermostat
A smart thermostat is basically a thermostat that connects to an app on your smartphone and gives you a lot of control over how to manage your home’s internal temperature. You can use one to shut off your heat or air conditioning remotely, set your house to different temperatures throughout the day, and get automated suggestions to save energy.
According to the online tech publication CNET, installing a smart thermostat costs about $100 to $350 up front. Then, it saves the typical homeowner between about $130 and $250 per year in energy usage.
Transition to Energy-Efficient Appliances
Some appliances are designed to work more efficiently than others, and a more efficient model can save you quite a bit of money over a lifespan of five to ten years. This isn’t a recommendation to go buy a new refrigerator if you have a perfectly fine one at home, but when the time comes, you should factor energy use into your decision.
Sears Home Services recommends purchasing ENERGY STAR appliances, which the Environmental Protection Agency (EPA) certifies for their energy efficiency and eco-friendliness. To get certified, appliances must undergo rigorous tests in independent laboratories. These devices tend to cost slightly more up front but more than repay the difference over time. Sears also says that ENERGY STAR appliances tend to offer better features and reliability than their non-certified counterparts.
Start Cutting Your Heating and Cooling Costs Now
If you haven’t already, the time is now to seal your home’s air leaks and install a smart thermostat. It could save you up to $500 a year, with a positive return on investment in year one. That means the earlier you take these steps the bigger long-term impact they’ll have on your budget. Then, the next time you need to replace your home appliances, save even more by shopping for energy-efficient options.