- Benzinga Advisor
- Posts
- New Survey Reveals Nearly Half of Americans Struggle To Make Ends Meet
New Survey Reveals Nearly Half of Americans Struggle To Make Ends Meet
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're talking about the financial outlook for Americans. According to a new study, 33% of U.S. adults say their financial situation has gotten worse over the past year. With tariffs, high interest rates, and a tight labor market, many consumers are feeling the squeeze and relying more on "buy now, pay later" loans to cover basic purchases. Read on for all the details.
Plus, a look back at the last week of market activity.
Table of Contents
INDUSTRY CHATTER
Americans continue to face new and complex financial challenges. While inflation has come down after peaking at 9.1% just three years ago, it still remains elevated and well above the Federal Reserve’s goal of 2%.
July’s core inflation report showed slight acceleration as inflation rose 0.2% month-over-month to land at 3.1%. With tariffs, high interest rates, and a tight labor market, consumers are starting to feel the squeeze as more relay on "buy now, pay later" loans to cover basic purchases.
Credit card balances have soared to record highs, student loan delinquencies are climbing, and a significant number of Americans still lack emergency savings. So where does this leave the average household? A new survey from Yahoo Finance/Marist Poll reveals some surprising findings.
Cost Of Living
Nearly half (45%) of Americans describe the cost of living in their area as not affordable. Household energy, auto insurance, housing, and restaurant meals were among the expense categories that jumped the most in price.
Younger generations seem to have a slightly brighter outlook when it comes to the cost of living. Nearly 20% of Gen Z and 17% of Millennials say their costs are affordable — a much higher share than Gen X (10%) or Baby Boomers where that number drops to just 3%. There’s also a noticeable gender gap: 60% of men say their area is affordable, compared to just 50% of women.
Trends In Personal Finances
Roughly 33% of Americans say their financial situation has gotten worse over the past year. While the stock market soars and the broader economy shows signs of stability, many households are feeling left behind. The pain isn’t evenly distributed. Older generations (39% of Gen X, 35% of Baby Boomers) are more likely to report that their family finances have worsened over the past year than are members of Gen Z (29%) and Millennials (29%).
Income plays an even bigger role: nearly half of those earning under $50,000 say things have gotten worse, versus just 27% of higher earners. And when it comes to improvement, there’s a surprising gender gap with 36% of men saying their finances have improved, while only 18% of women say the same.
Savings Satisfaction
Nearly half (45%) of adults report their income just about matches their expenses, while about 30% say their monthly expenses exceed their monthly income.
When it comes to savings, Americans are split with 51% saying they are somewhat or completely satisfied, while 49% report they are somewhat or completely dissatisfied with their current levels of savings.
Younger adults — Gen Z and Millennials — are slightly more likely to feel good about their savings compared to older generations, though even then, the numbers are modest. Income, unsurprisingly, plays a major role: 30% of those earning under $50,000 say they’re completely dissatisfied with their savings, compared to just 9% of higher earners. There’s also a noticeable gap between men and women with 31% of men report being satisfied with their savings, versus only 19% of women.
Financial Knowledge And Balancing Budgets
Most Americans say they’re pretty in tune with their credit, with 78% reporting knowing their scores, however, that awareness doesn’t always translate into financial breathing room. When it comes to monthly budgets, nearly half of Americans (45%) say their income just covers their expenses. Another 29% say they’re spending more than they earn — a figure that jumps to 42% among households earning under $50,000, compared to just 22% of higher earners.
Despite economic stability, many Americans continue to struggle financially, with rising living costs, high debt levels, and uneven income growth creating widespread strain. Younger generations and higher earners tend to feel slightly more optimistic, but overall, nearly half of households barely break even or spend beyond their means, highlighting ongoing financial vulnerability across the country. In short, confidence remains fragile, and for many, a sense of financial security still feels out of reach.
WEEKLY MARKET RECAP
A week that began with a robust selloff in tech stocks, triggered by fading AI euphoria and a 20% drawdown in Palantir Technologies Inc. ended with a euphoric rally across Wall Street, powered by unexpectedly dovish signals from Federal Reserve Chair Jerome Powell.
Speaking at the annual Jackson Hole symposium, Powell said that, with policy still restrictive and job market data weakening, the Fed could soon pivot — marking his clearest signal yet that rate cuts may be on the horizon.
Despite inflation still running well above the Fed's 2% goal, Powell indicated that job creation has slowed dramatically and the balance of risks has shifted. The Fed, he suggested, is prepared to act if rising unemployment and slowing growth persist.
Powell also addressed inflationary pressures from tariffs. He said their impact on prices is "clearly visible," but it might remain confined to a one-time price level adjustment, rather than a broader, persistent inflation trend. However, he also highlighted the risks associated with a rise in inflation expectations.
Markets were caught off guard. Economists had expected a neutral stance, but Powell's comments were widely interpreted as a green light for a September rate cut. Traders now fully price in a 25 basis-point reduction, which would bring the federal funds rate to 4.00%-4.25%.
Treasury yields tumbled and stocks rallied, with more speculative pockets of the market outperforming.
The Dow Jones Industrial Average surged past 45,600, setting new all-time highs. But the real momentum came from small caps: the Russell 2000 Index rallied to its highest level since December 2024, posting its strongest single-day performance since April 9.
Tesla Inc. (TSLA) led the Magnificent Seven and cryptocurrencies rallied across the board as investors expect looser financial conditions. Michigan-based automaker stocks joined Friday's rally, with shares of General Motors up 3% hitting their highest level since late November 2024, Ford was up more than 3%, and Stellantis N.V. surged 5% after months of underperformance.
THE WEEK AHEAD
Economic Data
Monday: New home sales and building permits
Tuesday: S&P Case-Shiller home price index and durable-goods orders
Wednesday: Crude oil inventories
Thursday: Initial jobless claims, GDP and pending homes sales
Friday: Personal income, consumer sentiment and PCE
Earnings
Click here for the full calendar of economic data and earnings reports.
LEARN WITH BENZINGA PRO
Lastly, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business in front of all our subscribers, click here to send us an email.
BEFORE YOU GO
Were you forwarded this email? Click here to subscribe.
And be sure to check out our other newsletters:
Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.
Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.
Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.