Nearly a Third of Americans are Pessimistic About Their Future Financial Situation

Amid a downbeat economic outlook, Americans are increasingly pessimistic about their finances, with 28% expecting their family’s financial situation to worsen over the next year, up sharply from 16% in May 2024.

A Pew Research Center survey also revealed that Americans’ views on their present financial circumstances and what might happen in the future differ substantially by income.

Only 20% of lower-income adults feel their financial situation is in excellent or good shape, compared to 47% of middle-income adults and 74% of those with higher incomes.

Looking ahead, 34% of upper-income adults expect their financial situation to worsen over the next year, a significant increase from 11% last year. In contrast, 27% of middle-income and 28% of lower-income adults share the same pessimistic outlook.

In terms of the specific financial challenges Americans are facing, 27% had trouble paying for medical care for themself or their family and 26% borrowed money from friends or family.

Meanwhile, 21% had problems paying their rent or mortgage, 20% had problems paying their daily transportation costs, 20% of adults with a child younger than 18 had trouble paying for childcare and 19% had to get food from a food bank.

Despite the pessimism surrounding current and future financial situations, many Americans have also made financial progress over the past year, according to the report.

Nearly half (47%) of Americans said they have been able to save money for the future, which is up from 42% in 2024. In addition, 46% have afforded to go on vacation and 36% said they have gotten a pay raise at their current job or gotten a better job, up from 32% in 2024.