Recaps of the Biggest Financial Events of 2023

Published by Gabe Fransen on

Gabe Fransen | January 19, 2024

Banking Crisis

The 2023 banking crisis highlighted the vulnerability of the banking sector that faced a number of challenges, including the sudden rise in interest rates and the failure of several banks: 

  • March 2023: Silicon Valley Bank (SVB) and Signature Bank . SVB’s collapse was a surprise to consumers and marked the second-largest bank failure in US history since 2008.
  • May 2023: First Republic Bank failed
  • July 2023: Heartland Tri-State Bank failed
  • November 2023: Citizens Bank of Sac City, Iowa failed

Student Loan Payments Resume

Student Loan Payments started again in October after a three year freeze. 43 Million Americans with student loans had to adjust their budgets to account for making payments again.

High Rate of Inflation

Annual inflation rate in 2023 was 3.4%, down considerably from the previous two years, but still higher than the 30 year average. The rise in housing costs, transportation services and food prices were major contributors.

Interest Rate Hikes

After several years of historically low interest rates, rates rose and rose fast in 2023 with 11 rate hikes throughout the year.

These events reinforced the need for a long term perspective when doing financial planning for household finances, making sure folks have a solid spending plan (budget). Understanding what cashflow is coming into the household and going out of the household and making sure there is more coming in than is going out. We find it valuable to at least once a year reviewing spending needs to make sure dollars aren’t slipping through the cracks.

Hanson, Melanie. “Student Loan Debt Statistics”, August 20, 2023,

“Current US Inflation Rates: 2000-2024” UN Inflation Calculator

Nowacki, Lauren. “2023 Fed Rate Hike Impact On Mortgages, Home Buying And More”

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