Key findings

Half of Americans (50%) are more stressed financially than a year ago, with 70% of Americans just managing, struggling, or falling behind

Only five percent of Americans describe their current personal financial situation as “thriving”, with one in four (25%) feeling “comfortable”. The largest group of Americans, at 41%, are “managing” to get by, followed by 21% who are “struggling” financially, and 9% who feel like they are “falling behind”.  Millennials are more likely than all other age groups to feel like they are falling behind (15% vs. 8% of Gen Z, 9% of Gen X). More than half of Americans (59%) consider themselves as living “paycheck-to-paycheck”, with Millennials also more likely to self-identify as such (74% vs. 65% of Gen Z, 63% of Gen X). 

Low savings and debt are the leading contributors of financial stress for Americans

A quarter of Americans cite auto insurance (24%) and medical bills (24%) as financial stressors, while a small but significant percentage cite their mortgage (17%), student loans (16%), home insurance (15%), and auto loans (14%).

Americans are pessimistic about the U.S. economy as they face rising prices for groceries and transportation

More than half (54%) of Americans think the U.S. economy will decline over the next year; only three in ten (28%) expect things to improve, while 18% believe things will remain about the same. Similarly, 56% of Americans say everyday life has become less affordable for their household compared to one year ago, citing the rising prices of groceries (76%), gas and transportation (71%), utilities (49%), health care expenses (37%), insurance (35%), and rent or mortgage (32%). They are also reducing spending or stopping purchasing across many categories due to rising costs, including:

In addition to cutting expenses, Americans are navigating rising prices by tapping into their savings, increasing their income, or taking on debt

Four in ten (39%) Americans have used a credit card to pay for groceries or household essentials due to affordability issues

Americans are also relying on debt or loans to pay for a potential $1,000 emergency expense:

One in four (23%) adults say homeownership is completely out of reach for them

Only one in ten (11%) Americans expect to be able to purchase a home in the next five years; one in five are cautiously optimistic (19% maybe), while one in four (23%) say it feels impossible. Despite the pessimism over homeownership, only 4% of Americans say they are not interested in owning a home.

For those who are not currently homeowners or in a position to currently purchase a home, optimism towards the prospect of homeownership varies:

Affordability is a leading issue for upcoming elections as rising food and energy prices are Americans’ biggest economic concern

One in four (23%) Americans say that affordability is the most important issue for them in upcoming elections, while more than half (54%) say it is one of the top issues. Only 24% say that it is a minor issue (12%) or not an issue (11%). Rising food and energy prices are the leading economic concern for Americans (74%), ahead of long-term economic stability (58%), health care costs (53%), housing affordability (50%), job security and wages (46%), interest rates (34%), and stock market volatility (27%).

The federal government is seen as most responsible for the current affordability crisis for Americans

Four in ten (38%) Americans say that the federal government has the most responsibility for current affordability challenges, more than double the percentage who say there is no single group responsible (15%) or attribute the challenges to global events (13%). More than half of Americans who identify as Democrats blame the federal government (55%), while only 23% of Republicans point a finger at the current administration.

Paying down credit card debt, increasing savings, and covering living expenses are the top expected uses of tax refunds

One in four Americans who expect a tax refund this year plan to use their refund to pay down credit card debt (23%) or put it in savings (23%), and 20% expect to use their refund to cover living expenses. Less than 10% plan to use their refund to splurge on purchases (3%), make a major purchase (4%), pay down non-credit card debt (7%), or invest it (3%).