In 2024, Americans face multiple financial challenges that impact their ability to save and manage their finances effectively. Inflation remains a top concern, causing higher costs for necessities like housing, groceries and utilities and straining household budgets.
Credit card debt is also at an all-time high. Rising interest rates on credit cards and loans are making it harder for consumers to pay off their balances. In addition, many households have depleted the excess savings they accumulated during the pandemic, leaving them with fewer financial buffers.
With all of this in mind, Yahoo Finance partnered with Marist Poll to survey more than 3,000 banked adults in the U.S. (with at least one checking or savings account) to shed light on the financial struggles and concerns families face. Here's what Americans say are their biggest barriers to saving and where they see their finances in 2025. (See our full methodology here.)
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Only 22% of respondents said they were very or completely satisfied with their savings, while 35% said they were very or completely dissatisfied. 40% of women are very or not at all satisfied with their savings, compared with 28% of men.
Nearly half (48%) of respondents will save less in 2024 compared with the previous year, while only 21% will save more.
Nearly half (47%) of respondents cited cost of living as their biggest barrier to saving.
A third (33%) of respondents would not be able to pay even one month's bills if they lost their income.
44% of respondents believe they will increase their savings in 2025, with Gen Z (63%) and Millennials (53%) showing the highest levels of optimism.
Sixty percent of respondents said they were more optimistic about their finances in the coming year under Donald Trump's presidency. This optimism cuts across generational lines, with Gen Z (70%) being the most optimistic.
We set out to learn more about how higher costs and competing financial obligations are impacting Americans’ savings. Here's what we found:
In the post-COVID-19 era, the rising cost of living dominates financial news headlines. In June 2022, the inflation rate reached a 40-year high of 9.1%, leaving many households feeling strapped for cash. Although inflation has since receded (the consumer price index was up 2.7% year-over-year in November 2024), the high costs of housing, groceries and other necessities will remain for the foreseeable future.
Overall, our survey found that the majority of respondents described the cost of living in their area as "not very affordable" (45%), while a further 22% said it was not affordable at all.
On the other hand, Gen Z respondents are more likely to describe the cost of living as “very affordable” (9%) than other generations: Millennials (8%), Gen X (3%) and Baby Boomers/Silent/Greatest Generation (2%).
Not only are survey respondents dissatisfied with the cost of living in their area, but most are struggling to afford necessities while saving for the future.
More than a quarter of respondents said they were living comfortably. Older Americans (Baby Boomers/Silent Generation/Greatest Generation) are more likely to say they live comfortably (40%).
At the same time, 31% of respondents are able to meet basic expenses and have a little money left for additional expenses, while another 30% can only meet basic expenses. 12% said they did not have enough money to cover basic living expenses.
Everyone’s savings goals are different, depending on lifestyle, family size, debt obligations, and more. When it comes to whether Americans are satisfied with the amount they've saved so far, the results are mixed.
Thirty-five percent of respondents to our survey were dissatisfied with the money they saved. Women (40%) are more likely than men (28%) to say they are very or not at all satisfied with their savings – which may not be true given the financial challenges many women face, including the gender pay gap and higher care burdens strangeness. responsibility.
Read more: What is the average savings by age??
The past year has proven to be a difficult one for Americans saving. While interest rates on deposit accounts are at historically high levels, consumers are also facing inflation, soaring interest rates on debt, and record education costs.
Nearly half of respondents to our survey said they would save less money in 2024 compared with 2023; only 21% said they would save more money. Nearly a third of respondents said they saved about the same amount.
Overall, women are more likely to say they will have less money saved in 2024 than in 2023 (53% vs. 42% men), especially Millennial and Gen X women (57% vs. 59%, respectively) %).
Read more: How to Save Money in 2025: 50 Tips to Grow Wealth
With the arrival of a new year and a new administration, we sought to understand how Americans thought their savings habits would change in 2025.
It's not all doom and gloom, especially for younger savers. Younger Americans are more likely to say they will save more: 63% of Generation Z and 53% of Millennials, compared with 44% and 44% of Generation X and Baby Boomers/Silent Generation/Greatest Generation 25%.
Those most likely to have saved about the same amount by 2025 are Baby Boomers/Silent Generation/Greatest Generation (44%). However, women are more likely than men to say they will save less this year (27% vs. 20% respectively).
Read more: The 4 best (and worst) places to store emergency funds
We wanted to learn more about the challenges savers face that prevent them from achieving their savings goals.
Nearly half of respondents (47%) cited cost of living as their biggest obstacle to saving money. Other common reasons include unexpected bills or expenses (11%), excessive financial obligations (10%) and changes in income or employment status (10%).
Older Americans are most likely to say they have no challenges saving money (19%).
There are many ways you can pay your bills during tough financial times, and some of them will boost your bottom line better than others.
The largest proportion of respondents (26%) said their solution was to dip into their savings. 15% said they would cut back on spending, while 14% would find an extra job or work longer hours.
Another 10% of respondents said they would turn to family or friends for help in a financial emergency, with Gen Z and Millennials the most likely to do so (15% both).
Generation X and Baby Boomers/Silent/Greatest Generations are more likely to pay their expenses with a credit card (10%).
Most experts recommend saving at least three to six months' worth of expenses in an emergency fund. However, not everyone can meet this guideline, given the many barriers Americans face when it comes to saving.
The average time respondents spent paying expenses using funds available in their checking or savings accounts was seven months.
However, about a third of respondents said they were unable to pay even one month's worth of bills and expenses. Gen Z (38%) and Millennials (41%) are more likely than other generations to say they can’t pay their bills for a month.
In contrast, Generation X and Baby Boomers/Silent Generation/Greatest Generation (both 19%) are more likely than younger generations to have enough savings to manage for a year or more.
Read more: How much money should I have in my emergency savings account?
For better or worse, new governments often bring with them a new economic agenda. Most Americans are looking forward to positive change.
A majority of respondents (60%) are more optimistic about Trump's personal finances as the next president. This is a consensus across generations, with Gen Z being the most optimistic (70%). Baby boomers/silent/greatest generations are the most pessimistic (46%).
Read more: How much of your salary should you save??
The survey, conducted by Marist Poll in partnership with Yahoo Finance, surveyed 3,131 adults between December 3 and 5, 2024. Adults 18 years and older living in the United States were contacted through a variety of modes: via phone call, text message, or online with an in-person interviewer. All potential respondents were screened for age.
The probability-based sampling frame consisted of RDD landlines plus listed landlines, and an RDD cell phone sample plus a billing address-based cell phone sample to account for mobility in and out of the state. These samples are provided by Dynata, which administers surveys collected via phone calls and web text messages. A sampling frame based on an aggregated non-probability online research panel was randomly selected from Cint's Digital Insights platform to manage surveys collected across the web.
Survey questions are available in English or Spanish. All samples were selected to ensure that each area was proportional to its adult population. The sample is then combined and balanced to reflect the 2022 American Community Survey five-year estimates for age, gender, income, race and region.
The results for all adults (n=3,131) were statistically significant within ±2.1 percentage points. The results for banked households (n=2,828) are statistically significant within ±2.2 percentage points. The design effect for this survey was 1.4, which was included in the calculation of all reported margins of error. Among the registered voters in this survey, the party distribution is 38% Democratic, 36% Republican, and 25% independent voters.