A new Gallup study finds nearly one-third of Americans are feeling financially stressed, describing a daily struggle to keep up with all the bills, make financial trade-offs and stay in control of their money.
The survey of more than 5,000 adults found that 32% of Americans fall into Gallup’s “financially stressed” category, while just 16% describe themselves as financially fulfilled – meaning their finances support the life they want to live.
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What financial stress looks like
Gallup defines financial stress as regularly struggling to meet financial obligations, feeling forced to choose between competing priorities and lacking confidence in one’s financial future.
Many respondents said they frequently worry about money and feel their spending decisions don’t align with their personal goals and values.
When asked about their top financial priorities, 67% said increasing household income was their primary concern. Another 65% cited reducing debt, while 57% said they wanted more money available for everyday purchases.
Costs continue to pressure household budgets
The findings arrive as many Americans are struggling to face elevated costs for essentials.
According to AAA, the average national price of gasoline stood at $4.26 per gallon Wednesday, up more than a dollar from the same time last year.
Inflation has cooled from its peak but remains a challenge for many households. The Consumer Price Index was up 3.8% in April compared with a year earlier, according to the Bureau of Labor Statistics.
Economists say the cumulative effect of higher prices for necessities such as housing, food, healthcare, utilities and transportation continues to strain household budgets.
Americans are saving less
One sign of that pressure can be seen in Americans’ savings accounts.
The Bureau of Economic Analysis reports the personal savings rate fell to 2.6% in April, compared to 5.8% a year earlier.
“I thought 2.6% for April was a typo at first. It is so low,” Heather Long, chief economist at Navy Federal Credit Union, told CNBC.
Long noted that, excluding a brief dip in 2022, Americans have not saved this little in more than six decades.
“It’s more than just high gas prices,” Long said. “It’s rising electricity, healthcare and food prices. These are the basics that people must pay. It’s harder to skimp on these items.”
Looking for bargains
Retailers that cater to budget-conscious shoppers say they’re seeing the effects firsthand.
Dollar General reported a 3.4% increase in first-quarter sales this week, with executives saying many customers are actively cutting back in other areas of their budgets to search for affordability and value.
Chief Executive Todd Vasos said some customers reported purchasing less food and reducing other household spending because of higher fuel costs.
The Gallup findings suggest those choices are becoming increasingly common. While some Americans say they feel financially secure, many others report spending more time figuring out what they can afford – and what they have to do without.
