Cost of living remains a major strain
Midway through 2025, many U.S. households are still struggling to balance their budgets despite cooling inflation. A new Yahoo Finance/Marist Poll finds that 45% of Americans view the cost of living in their area as unaffordable. Inflation, though down from its 2022 peak, remains elevated, with the CPI rising 2.7% year-over-year in June. Housing, energy, auto insurance, and dining costs continue to rise, hitting lower-income earners and older generations hardest. Men and younger Americans reported a slightly more positive view of affordability than women and older age groups.
Mixed progress on savings and income
One in three Americans say their financial situation has worsened in the past year, with lower-income households reporting greater declines. About half of respondents are satisfied with their savings, yet nearly a third express deep dissatisfaction. Income and gender gaps persist: higher earners and men are more likely to report satisfaction. While 45% say their income matches expenses, nearly 30% admit monthly expenses exceed income, forcing many to cut spending or tap into savings.
Credit scores and financial awareness
Most Americans (78%) know their credit score, but 28% admit they understand little about how their spending and saving habits affect it. Millennials and Gen Z are more likely than older generations to have had their credit score influence a financial decision in the past year. Lower-income households are twice as likely to report that their score has hindered their financial goals compared with higher earners. Net worth awareness also shows clear demographic gaps, with men, older Americans, and higher earners displaying greater familiarity with their financial position.
Generational and income divides persist
Baby boomers and older generations are more likely to run monthly budget surpluses than younger groups, despite expressing less satisfaction with their savings. In contrast, Gen Z struggles the most with balancing expenses and income. Across the board, households earning under $50,000 face higher risks of financial shortfalls, reduced savings satisfaction, and negative credit outcomes. The survey underscores that while external factors like inflation and tariffs shape personal finances, knowledge of credit, net worth, and budgeting strategies plays a pivotal role in long-term stability.