If you have been keeping an eye on your wallet, you are not alone. As Americans continue to deal with inflation, 76% report that they are cutting back on spending, an increase 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 postponing high-cost plans such as travel, home purchases, education, weddings, and retirement.
“There is a clear social narrative around the question: ‘Do I have, and will I have, enough?’ The fact that these questions are being asked is positive because we know that the earlier people focus on their financial behaviors, the more time they will have to correct course and achieve their goals,” said Michael Liersch, head of Advice and Planning at Wells Fargo.Consumers continue to deal with higher-than-expected prices
An overwhelming majority of 90% of respondents reported feeling “price shock” in one or more areas of common spending, including dining out, going to a concert, buying a bottle of water, or downloading a video game, and say that actual costs are between 55% and 200% higher than expected.
“Spending is one of the most important factors in staying on track,” Liersch said. “I would encourage people to align their spending with what matters most to them.”
Nearly all Americans (94%) recognize that they want to do just that: align financial choices with their values, and 86% want to be more intentional and thoughtful about spending.
According to Liersch, “These perceptions highlight that Americans are not just improvising. They are being extraordinarily introspective as they navigate their financial priorities.”Americans judge themselves, not others
Money can be an emotional topic, sometimes inciting envy, anxiety, and secrecy. While 87% of Americans say it doesn’t matter to them how much money someone else has, 56% keep secret how much they have, and 32% of them say it’s because they are trying to avoid being judged by others.
Americans also spend time thinking about how much money other people have – and wishing they had more for themselves. Forty-seven percent responded that they often feel envious of how much money other people have, 37% admit to obsessing over getting rich, 34% admire social media millionaires, and 23% admit to sometimes overspending just to keep up with those around them.
“Americans seem comfortable with others being authentic about their financial situation, which is encouraging,” says Liersch. “So now is the time to overcome self-loathing and redefine others’ benchmarks to one’s own personal benchmark.”Americans want help achieving goals
Eight-six percent of respondents say they have a clear vision of what they want their money to do for them. And the vast majority are optimistic about how to achieve this: 87% say now is a good time to save and 65% say now is a good time to invest. However, 61% say they need a mental reset and are being hindered by factors such as difficulty changing habits, lack of financial knowledge, and other financial responsibilities.
To overcome these challenges, Americans are seeking more financial guidance year after year. Last year, 24% said they were seeking more advice from others; this year, it’s 36%. Looking across generations, the desire for more guidance is highest among teenagers (54%), Generation Z adults (61%), and millennials (46%).
At a time when many feel financially strapped, learning new ways to think about and manage money can help you take control of your financial future.
For the full report, visit: wf.com/wfmoneystudy-2025.
Source: StatePoint