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.
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.
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
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.
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.
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
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.
Read more: How the ‘No Buy 2025’ trend could help you get your budget on track this year
Knowing your credit score is key to maintaining your financial health and reaching your goals. Fortunately, most survey respondents reported that they are aware of their current scores.
Do you know your credit score?
Yes: 78%
No: 13%
Unsure: 9%
Read more: How to check your credit score for free
Not everyone understands how certain financial habits impact their credit scores
While a majority of survey respondents said that they know their credit scores, there seems to be a knowledge gap when it comes to understanding the impact that saving and spending habits can have on credit health.
How much do you feel you know about how spending and saving decisions can affect your credit score?
A great deal: 31%
A good amount: 41%
A little: 22%
Nothing at all: 6%
The survey found that men (75%) are more likely than women (69%) to say they know a great deal or good amount about how spending and saving decisions impact their credit scores. Additionally, 78% of households with incomes of $50,000 or more express greater awareness of how financial decisions affect their credit scores compared with 60% of households earning under $50,000.
Read more: How are credit scores calculated?
Credit scores play a crucial role in your ability to borrow money and qualify for the best terms and interest rates. Plus, your credit can impact other areas of your life, including the ability to rent an apartment, open utility accounts, and even get hired for certain jobs. So, it’s no wonder that credit scores are considered a key indicator of overall financial health.
Has your credit score played a role in a personal financial decision you’ve made in the past year?
Forty-four percent of Americans say their credit score has influenced a financial decision in the past year, while 55% say it has not. Millennials (57%), Gen Z (50%), and Gen X (48%) are more likely than baby boomers/silent/greatest generations (30%) to have had their credit score factor into a financial decision in the last 12 months.
Read more: What is a good credit score?
The good news: 42% of Americans report that their credit score has mostly helped them achieve their financial goals over the past year.
To the best of your knowledge, how has your credit score affected your ability to achieve your financial goals in the past year? Has it:
However, 38% say it has neither helped nor hurt, and 19% report their score has mostly hurt their ability to achieve their financial goals. Notably, adults with a household income of less than $50,000 (30%) are more than twice as likely as those earning more than $50,000 (14%) to say their credit score has mostly hurt their ability to achieve their financial goals.
Read more: 10 tips to improve your credit score in 2025
Your net worth is the difference between what you own (assets) and what you owe (liabilities). Like credit scores, net worth is another important indicator of overall financial health. And generally, you should aim to increase your net worth over time.
Thinking about your finances overall, do you know your net worth, that is, your total assets minus your total liabilities?
Yes: 58%
No: 21%
Unsure: 21%
When asked about their net worth, more than 4 in 10 Americans report a lack of knowledge or uncertainty.
Across generations, net worth knowledge trends upward with age. Forty-eight percent of Gen Z, 57% of millennials, 56% of Gen X, and 66% of baby boomers/silent/greatest generations report knowing their net worth.
Further, 68% of men say they know their net worth compared to 48% of women. There is also an income-based knowledge gap: 68% of those earning $50,000 or more are confident they know their net worth compared with only 39% of households earning less than $50,000 annually.
Read more: 6 ways to increase your net worth
Americans today face unique challenges when it comes to budgeting, saving, and wealth building. While there will always be economic forces largely out of your control, financial literacy also plays a crucial role in overall financial health — and that’s something you absolutely have power over, regardless of age, gender, or income.
Having the right insight into your finances can give you the knowledge and confidence to make smarter decisions with your money and reach your goals. My Money from Yahoo Finance is a free personal finance tool that provides a single, clear snapshot of your entire financial life, from your credit score to your net worth and monthly cash flow, all in one convenient place.
So, if you want an easy way to check your credit score, see where you’re spending the most money, and track your net worth over time, create an account with My Money for personal insights and guidance.
This survey of 2,575 adults was conducted June 13 through June 17, 2025, by the Marist Poll sponsored in partnership with Yahoo Finance. Adults 18 years of age and older residing in the United States were contacted through a multi-mode design: by text or online. Results for all adults (n=2,575) are statistically significant within ±2.1 percentage points.
