If you’ve been watching your wallet, you’re not alone. As Americans continue to navigate inflation, 76% report cutting back on spending, up from 67% in 2024, according to the second annual Wells Fargo Money Study.
The majority of Americans also say they are making tough financial choices to navigate their lives, including delaying plans with hefty price tags, such as travel, homeownership, education, marriage and retirement.
Consumers continue to navigate higher than expected prices
An overwhelming 90% of those surveyed responded they feel “sticker shock” in one or more areas of common spending, including eating out, attending a concert, buying a bottle of water, or downloading a video game, and say actual costs are between 55% and 200% higher than what they expect.
Nearly all Americans (94%) acknowledge that they want to do just that: align money choices with their values, and 86% want to be more intentional and thoughtful about spending.
Americans judge themselves, not others
Money can be an emotional topic, at times inciting envy, anxiety and secretiveness. While 87% of Americans say it makes no difference to them how much money another person has, 56% keep how much they have secret, and 32% of them say it’s because they are trying to avoid people judging them.
Americans also spend time thinking about how much money other people have – and wishing they could have more themselves. Forty-seven percent responded they often feel envious of how much money other people have, 37% admit to obsessing about getting rich, 34% admire social media millionaires, and 23% admit to sometimes overspending just to keep up with people around them.
Americans want help meeting goals
Eighty-six percent of respondents say they have a clear picture of what they want their money to do for them. And the vast majority are optimistic about how to do it: 87% say now is a good time to save and 65% say now is a good time to invest. Yet 61% say they need a mental reset, and are being held back by such factors as difficulty changing habits, lack of financial knowledge and other financial responsibilities.
To overcome these challenges, Americans are seeking more financial advice year over year. Last year, 24% said they were seeking more advice from others; this year it’s 36%. Looking across generations, the desire for more advice is higher among teens (54%), gen Z adults (61%) and millennials (46%).
