Americans continue to face new and complex financial challenges. While inflation has come down after peaking at 9.1% just three years ago, it still remains elevated and well above the Federal Reserve's goal of 2%.

July's core inflation report showed slight acceleration as inflation rose 0.2% month-over-month to land at 3.1%. With tariffs, high interest rates, and a tight labor market, consumers are starting to feel the squeeze as more relay on “buy now, pay later” loans to cover basic purchases.

Credit card balances have soared to record highs, student loan delinquencies are climbing, and a significant number of Americans still lack emergency savings. So, is the average household getting ahead -- or are they just getting by? A new survey from Yahoo Finance/Marist Poll reveals some surprising findings.

Cost Of Living

Nearly half (45%) of Americans describe the cost of living in their area as not very affordable or not affordable at all. Household energy, auto insurance, housing, and restaurant meals were among the expense categories that jumped the most in price.

Younger generations seem to have a slightly sunnier outlook when it comes to the cost of living. Nearly 20% of Gen Z and 17% of Millennials say their local costs are very affordable -- a much higher share than Gen X (10%) or Baby Boomers where that number drops to just 3%. There's also a noticeable gender gap: 60% of men say their area is affordable or very affordable, compared to just 50% of women.

Trends In Personal Finances

Roughly 33% of Americans say their financial situation has gotten worse over the past year. While the stock market soars and the broader economy shows signs of stability, many households are feeling left behind. The pain isn't evenly distributed. Older generations (39% of Gen X, 35% of Baby Boomers) are more likely to report that their family finances have worsened over the past year than are members of Gen Z (29%) and Millennials (29%).

Income plays an even bigger role: nearly half of those earning under $50,000 say things have gotten worse, versus just 27% of higher earners. And when it comes to improvement, there's a surprising gender gap with 36% of men saying their finances have improved, while only 18% of women say the same.

Savings Satisfaction

Nearly half (45%) of adults report their income just about matches their expenses, while about 30% say their monthly expenses exceed their monthly income.

When it comes to savings, Americans are split with 51% saying they are somewhat or completely satisfied, while 49% report they are somewhat or completely dissatisfied with their current levels of savings.

Younger adults -- Gen Z and Millennials -- are slightly more likely to feel good about their savings compared to older generations, though even then, the numbers are modest. Income, unsurprisingly, plays a major role: 30% of those earning under $50,000 say they're completely dissatisfied with their savings, compared to just 9% of higher earners. There's also a noticeable gap between men and women, with 31% of men reporting being satisfied with their savings, versus only 19% of women.

Financial Knowledge And Balancing Budgets

Most Americans say they're pretty in tune with their credit, with 78% reporting knowing their scores, however, that awareness doesn't always translate into financial breathing room. When it comes to monthly budgets, nearly half of Americans (45%) say their income just covers their expenses. Another 29% say they're spending more than they earn -- a figure that jumps to 42% among households earning under $50,000, compared to just 22% of higher earners.

Despite economic stability, many Americans continue to struggle financially, with rising living costs, high debt levels, and uneven income growth creating widespread strain. Younger generations and higher earners tend to feel slightly more optimistic, but overall, nearly half of households barely break even or spend beyond their means, highlighting ongoing financial vulnerability across the country. In short, confidence remains fragile, and for many, a sense of financial security still feels out of reach.

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