Americans’ Financial Worries Continue to Center on Affordability and Rising Costs

The pressure of rising prices continues to dominate the everyday financial lives of millions of Americans. According to the latest Gallup data, Americans’ financial worries are still overwhelmingly tied to affordability, with the high cost of living, surging energy costs, and rising housing expenses driving the bulk of public concern.

Even though inflation has cooled from its peak, families across the United States are still feeling significant strain — and many believe their financial situation is getting worse, not better. The findings reflect a population that remains cautious, frustrated, and increasingly uncertain about what lies ahead.

Affordability Remains the Top Concern

When asked about the most important financial issue facing their families, 31% of Americans pointed to inflation and high prices. While that figure is below the 41% peak recorded in 2024, it remains one of the highest readings in Gallup’s more than two-decade trend.

Affordability has held the top spot for five years in a row, an unusually long stretch. This persistence suggests that despite cooling headline inflation, many Americans simply haven’t seen meaningful relief in their day-to-day spending — and continue to feel squeezed by the cost of basic necessities.

Energy Costs Surge to Highest Level Since 2008

One of the most striking shifts this year is the dramatic rise in concern about energy costs. The percentage of Americans naming energy as a top financial concern has surged 10 percentage points compared to last year, climbing to 13%. This marks the highest level since 2008, and energy now ties with housing as the second-most-cited financial worry.

Rising fuel prices, higher utility bills, and broader concerns about inflation have all contributed to this growing anxiety. With ongoing global instability and unpredictable energy markets, many households are bracing for continued pressure on this front.

Housing and Healthcare Concerns Remain Elevated

Housing costs continue to be a major worry for Americans, also cited by 13% of respondents. From rising rents to expensive home prices and high mortgage rates, housing affordability has become a persistent challenge for both renters and prospective buyers alike.

Healthcare worries follow closely, with 8% of Americans naming it as their most pressing financial concern — a number that has remained steady since 2020. Together, these areas paint a picture of an economy where the most essential parts of life — food, fuel, shelter, and care — continue to strain household budgets.

Other Cost-of-Living Pressures

Beyond the headline categories, Americans also flagged a wider range of cost-of-living issues that affect daily life, including college expenses, transportation costs, and childcare. When all of these affordability concerns are combined, they vastly outweigh any other category of financial worry.

This collective focus on affordability shows just how deeply pricing pressures have shifted the average American family’s outlook on their financial wellbeing — even when official economic data suggests the situation is improving.

Other Common Financial Concerns

While affordability dominates the conversation, Americans cited a variety of other financial challenges. Among these:

Concerns about taxes were cited by 6% of respondents, while 2% each noted concerns about the broader economy, the stock market, and interest rates. Just 1% mentioned worries about Social Security.

Issues related to insufficient income made up another major category, with 7% citing lack of money or low wages, and 4% mentioning unemployment or potential job loss.

Some Americans pointed to debt-related stresses, with 6% mentioning general debt and 1% specifying credit card debt. The smallest share of concerns came from those worried about the inability to save — including 3% citing retirement savings issues and 2% concerned about overall savings.

Hardship From Rising Prices Persists

The latest Gallup Panel survey adds another important dimension to the data: even as inflation has slowed, many Americans still report that recent price increases have been a real hardship on their ability to maintain their standard of living. About 55% of Americans say they’re experiencing hardship — a figure that has held steady since 2023 after being notably lower in late 2021 and early 2022.

This suggests that while inflation has eased mathematically, many households are still feeling the lingering impact of years of rising prices. Even modest monthly cost increases continue to add up, especially for families already living paycheck to paycheck.

A Stagnant Financial Outlook

When it comes to evaluating their current financial situation, Americans are largely stuck in a holding pattern. Just 46% rate their finances as “excellent” or “good.” More than a third — 35% — describe their situation as “only fair.” Meanwhile, 19% feel their finances are outright “poor.”

This level of pessimism is notably different from the years between 2016 and 2021, when half or more of Americans usually rated their financial situation positively. Today’s outlook more closely resembles the period from 2008 to 2015, although it’s not quite as bleak as during the Great Recession years of 2009 to 2011.

A Record High in Pessimism About the Future

Perhaps the most striking finding of all is the public’s view of the road ahead. A record 55% of Americans say their financial situation is getting worse — slightly higher than last year’s 53%, and well above 47% recorded in 2024.

This marks the fifth consecutive year in which more Americans believe their finances are deteriorating rather than improving. The only previous time this kind of multi-year pessimistic streak appeared was during the Great Recession — a sobering parallel that highlights just how heavy financial concerns have become for many U.S. households.

Specific Worries Remain Elevated

Beyond broader affordability concerns, Americans continue to express elevated levels of worry about specific financial scenarios:

A majority — 62% — say they’re worried about not having enough money for retirement, while 60% worry about being unable to afford medical costs in the event of a serious illness or accident. About 54% express concern about investment returns and maintaining their standard of living.

Routine healthcare costs concern 48% of Americans, while 41% worry about paying everyday monthly bills, and 40% are worried about being able to afford college. Concerns about housing costs and credit card payments stood at 35% and 28%, respectively.

While these numbers have remained relatively steady over the past year, they’re notably higher than they were in 2021 — before inflation surged.

Biggest Long-Term Increases

Several specific areas have seen the most dramatic increases since 2021:

Worry about making minimum credit card payments has jumped 11 percentage points. Concerns about maintaining one’s standard of living and paying monthly bills each grew by 9 percentage points. Concern about paying for a child’s education had been flat for years but has now climbed to 40%.

These shifts reveal that while inflation may be easing slightly, the cumulative effects of rising prices over recent years are still actively reshaping how Americans manage their personal finances.

Why Inflation Concerns Linger

Inflation soared dramatically in 2021, climbing from just 1.4% in January to 7% by year-end. It eventually peaked at 9.1% in June 2022 before easing in the years that followed.

While inflation has been under 3% for most months since early 2025, it has not consistently returned to the sub-3% range that was common in the decade before 2021. For many consumers, that subtle but persistent difference matters. Even modest monthly increases over time accumulate into noticeable hits to household budgets, savings goals, and overall financial confidence.

A Cautious Outlook for the Future

Despite stronger labor markets, lower unemployment rates, and improving economic indicators, financial anxiety remains a defining feature of American life today. Many households simply haven’t experienced the same financial recovery that economic data sometimes suggests is unfolding.

The lingering effects of pandemic-era inflation, combined with high housing prices, expensive healthcare, surging energy costs, and ongoing geopolitical instability, continue to weigh heavily on consumers. While some financial categories — like the stock market and interest rates — get less attention, the everyday costs of living remain constant sources of stress.

Final Thoughts

The current state of Americans’ financial worries reflects a deeply rooted concern about affordability, stability, and long-term security. As prices remain elevated and many households feel unable to break free from financial strain, public sentiment leans toward caution rather than optimism.

While there are signs that inflation is gradually easing, many Americans clearly aren’t convinced that real relief is on the way. From rising energy bills to lingering housing pressures and growing retirement worries, the affordability crisis continues to shape the financial mood of the country.

For now, the message is clear: Americans are watching their wallets closely, hoping for stability — but bracing for whatever might come next.