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1 in 3 Americans say their financial situation has deteriorated in the past year, new survey finds
1 in 3 Americans say their financial situation has deteriorated in the past year, new survey finds
A new Yahoo Finance/Marist Poll 2025 survey reveals insights into Americans' financial health and knowledge around key personal finance concepts.
Ivana Pino · Senior Writer
Mon, August 11, 2025 at 6:00 AM EDT 10 min read
A little more than halfway into 2025, Americans are facing new and complex financial challenges.
While inflation has cooled from its peak, its effects are lingering, especially in light of higher tariffs, elevated interest rates, and a tight labor market. Credit card balances have once again reached a new record high, student loan delinquencies are climbing, and a significant number of Americans still lack emergency savings.
So, is the average household getting ahead — or just getting by? A new Yahoo Finance/Marist Poll survey reveals a country divided on the state of personal finances.
From savings satisfaction to credit score awareness, here’s a closer look at how Americans are coping with inflation, debt, and everyday expenses — and how well they understand key indicators of how their personal finances are faring. 2025 My Money Survey: Key findings
We set out to learn more about how higher costs are impacting Americans and their personal finances. Here’s what we found. Nearly half of Americans describe the cost of living in their area as unaffordable
While a majority of Americans consider the cost of living in their area to be affordable, the survey found that a large number of Americans are struggling with the cost of living.
And that may come as no surprise. Though inflation has come down from its peak in the summer of 2022, it’s still elevated; the Consumer Price Index rose 2.7% over the prior year in June, up from 2.4% in May. Household energy, auto insurance, housing, and restaurant meals were among the expense categories that jumped the most in price.
However, sentiment varied across generations and genders. For example, men were notably more positive: 60% described costs as affordable compared to 50% of women. Women were also more likely to say costs were unaffordable (50%) than men (40%).
Additionally, younger Americans have a slightly more positive outlook about the cost of living in their areas; roughly 60% of millennials and Gen Z described costs as affordable or very affordable.
Read more: This map compares the cost of living in every state Men are twice as likely as women to report their personal finances have improved over the past year
Many Americans are not just feeling the pinch of higher costs — these costs have dampened their outlook on their personal finances. One in 3 Americans say their financial situation has deteriorated in the past year.
Older generations (39% of Gen X, 35% of baby boomers and members of the silent/greatest generation) are more likely to report that their family finances have worsened over the past year than members of Gen Z (29%) and millennials (29%).
There’s also a clear income gap: 47% of households earning under $50,000 report worsening finances compared with 27% of higher earners.
Meanwhile, men (36%) are twice as likely as women (18%) to report that their finances have gotten better.
Read more: Are men or women better at saving money? Here's what the data says. Close to a third of Americans are dissatisfied with their current level of savings
Earlier this year, our 2025 State of Savings report found that about 35% of Americans were very or completely dissatisfied with the amount of money they had saved over the past year. More than halfway into 2025, not much has changed, and only about 1 in 10 Americans feel completely secure with their financial cushion.
Our survey found that older respondents are less satisfied with their savings. Members of Gen Z (12%) and millennials (16%) are more likely than members of Gen X (8%) and baby boomers/silent/greatest generations (6%) to say they are completely satisfied with their savings.
Lower-income earners (30%) were also more likely to express complete dissatisfaction with their level of savings, compared with just 9% of higher earners.
Finally, men (31%) are more likely than women (19%) to be either completely or very satisfied with the amount of money they currently have saved. Gen Z is struggling the most with their budgets
Median weekly earnings among the nation's full-time wage and salary workers are up 4.6% over the previous year, according to the U.S. Bureau of Labor Statistics. Still, many Americans are scraping by, earning just enough to cover their expenses.
Which of the following best describes your current monthly personal finance situation?
Nearly one-third of respondents say their expenses exceed their income each month, while 27% report their income consistently exceeds their expenses.
Despite being more likely than younger generations to report dissatisfaction with their current savings levels, baby boomers and members of the silent/greatest generation (31%) are more likely to report monthly budget surpluses than members of Gen X (26%), millennials (25%), and Gen Z (23%).
Additionally, 42% of adults earning under $50,000 say their expenses exceed their income — nearly double that of those earning more than $50,000 (22%) who say the same.
Read more: Your complete guide to budgeting for 2025 Most Americans would cut spending to make ends meet
When faced with a cash flow shortfall, there are several options for covering monthly expenses, from dipping into savings to borrowing money. However, according to survey results, many respondents would choose to cut their spending.
If you were to have a month when your expenses exceeded your income, what is the main way you would address that?
Notably, lower-income households are more likely to cut spending when expenses get too high. Households with incomes under $50,000 (46%) say they would cut spending when expenses exceed income, while 39% of those making over $50,000 say the same.
1 in 3 Americans say their financial situation has deteriorated in the past year, new survey finds
A new Yahoo Finance/Marist Poll 2025 survey reveals insights into Americans' financial health and knowledge around key personal finance concepts.
Ivana Pino · Senior Writer
Mon, August 11, 2025 at 6:00 AM EDT 10 min read
A little more than halfway into 2025, Americans are facing new and complex financial challenges.
While inflation has cooled from its peak, its effects are lingering, especially in light of higher tariffs, elevated interest rates, and a tight labor market. Credit card balances have once again reached a new record high, student loan delinquencies are climbing, and a significant number of Americans still lack emergency savings.
So, is the average household getting ahead — or just getting by? A new Yahoo Finance/Marist Poll survey reveals a country divided on the state of personal finances.
From savings satisfaction to credit score awareness, here’s a closer look at how Americans are coping with inflation, debt, and everyday expenses — and how well they understand key indicators of how their personal finances are faring. 2025 My Money Survey: Key findings
- Nearly half (45%) of adults describe the cost of living in their area as not very affordable or not affordable at all.
- One in 3 Americans say their financial situation has deteriorated in the past year. Financial setbacks are most common among lower-income individuals and older generations.
- A little more than half of Americans express satisfaction with their savings, while close to one-third of Americans report being very dissatisfied or completely dissatisfied with their current level of savings.
- Nearly half (45%) of adults report their income just about matches their expenses, while about 3 in 10 say their monthly expenses exceed their monthly income.
- About 40% of Americans say they would cut spending when expenses exceed income, while 26% would dip into savings.
- Nearly half of Americans (44%) say their credit score has influenced a financial decision in the past year, while 55% say it has not.
- Most respondents (78%) say they know their credit scores, though 28% report they know a little to nothing at all about the implications their saving and spending habits have on their credit rating.
- Fifty-eight percent of Americans say they know their net worth, while 21% say they do not, and 21% are unsure. Generally, awareness increases with age and income.
We set out to learn more about how higher costs are impacting Americans and their personal finances. Here’s what we found. Nearly half of Americans describe the cost of living in their area as unaffordable
While a majority of Americans consider the cost of living in their area to be affordable, the survey found that a large number of Americans are struggling with the cost of living.
And that may come as no surprise. Though inflation has come down from its peak in the summer of 2022, it’s still elevated; the Consumer Price Index rose 2.7% over the prior year in June, up from 2.4% in May. Household energy, auto insurance, housing, and restaurant meals were among the expense categories that jumped the most in price.
However, sentiment varied across generations and genders. For example, men were notably more positive: 60% described costs as affordable compared to 50% of women. Women were also more likely to say costs were unaffordable (50%) than men (40%).
Additionally, younger Americans have a slightly more positive outlook about the cost of living in their areas; roughly 60% of millennials and Gen Z described costs as affordable or very affordable.
Read more: This map compares the cost of living in every state Men are twice as likely as women to report their personal finances have improved over the past year
Many Americans are not just feeling the pinch of higher costs — these costs have dampened their outlook on their personal finances. One in 3 Americans say their financial situation has deteriorated in the past year.
Older generations (39% of Gen X, 35% of baby boomers and members of the silent/greatest generation) are more likely to report that their family finances have worsened over the past year than members of Gen Z (29%) and millennials (29%).
There’s also a clear income gap: 47% of households earning under $50,000 report worsening finances compared with 27% of higher earners.
Meanwhile, men (36%) are twice as likely as women (18%) to report that their finances have gotten better.
Read more: Are men or women better at saving money? Here's what the data says. Close to a third of Americans are dissatisfied with their current level of savings
Earlier this year, our 2025 State of Savings report found that about 35% of Americans were very or completely dissatisfied with the amount of money they had saved over the past year. More than halfway into 2025, not much has changed, and only about 1 in 10 Americans feel completely secure with their financial cushion.
Our survey found that older respondents are less satisfied with their savings. Members of Gen Z (12%) and millennials (16%) are more likely than members of Gen X (8%) and baby boomers/silent/greatest generations (6%) to say they are completely satisfied with their savings.
Lower-income earners (30%) were also more likely to express complete dissatisfaction with their level of savings, compared with just 9% of higher earners.
Finally, men (31%) are more likely than women (19%) to be either completely or very satisfied with the amount of money they currently have saved. Gen Z is struggling the most with their budgets
Median weekly earnings among the nation's full-time wage and salary workers are up 4.6% over the previous year, according to the U.S. Bureau of Labor Statistics. Still, many Americans are scraping by, earning just enough to cover their expenses.
Which of the following best describes your current monthly personal finance situation?
- Your income consistently exceeds your expenses: 27%
- Your income about matches your expenses: 45%
- Your expenses consistently exceed your income: 29%
Nearly one-third of respondents say their expenses exceed their income each month, while 27% report their income consistently exceeds their expenses.
Despite being more likely than younger generations to report dissatisfaction with their current savings levels, baby boomers and members of the silent/greatest generation (31%) are more likely to report monthly budget surpluses than members of Gen X (26%), millennials (25%), and Gen Z (23%).
Additionally, 42% of adults earning under $50,000 say their expenses exceed their income — nearly double that of those earning more than $50,000 (22%) who say the same.
Read more: Your complete guide to budgeting for 2025 Most Americans would cut spending to make ends meet
When faced with a cash flow shortfall, there are several options for covering monthly expenses, from dipping into savings to borrowing money. However, according to survey results, many respondents would choose to cut their spending.
If you were to have a month when your expenses exceeded your income, what is the main way you would address that?
- Use a credit card: 23%
- Borrow money: 10%
- Cut your spending: 41%
- Dip into your savings: 26%
Notably, lower-income households are more likely to cut spending when expenses get too high. Households with incomes under $50,000 (46%) say they would cut spending when expenses exceed income, while 39% of those making over $50,000 say the same.
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