92% of Americans Cut Back Spending in 2025

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Table of contents

Key Findings
Most Americans Are Struggling to Afford Basic Living Expenses
Affordability Has Worsened for Many
Everyday Essentials Are the #1 Financial Stressor
Americans Are Cutting Back on Everything, Even Essentials
Half of Americans Have Dipped Into Savings to Survive
Americans Are Turning to Outside Help
Most Households Have Very Little Financial Cushion

A new national survey from Resume Now reveals that American households are experiencing severe and worsening financial pressure as wages fail to keep pace with rising costs.

In Resume Now's 2026 Cost-of-Living Crunch Report, just 12% of workers say their pay has kept up with inflation, and only 17% report they can comfortably cover essentials and save. Nearly everyone (92%) has cut back spending in 2025, including on essentials such as groceries and healthcare, while 49% have dipped into savings just to get by.

Key Findings

Paychecks are falling behind. Only 12% of workers say their wages have kept pace with inflation.
Just 17% of Americans feel financially secure enough to cover essentials and save.
Affordability is eroding fast. Nearly 4 in 10 say their ability to afford basics worsened this year; another 35% saw no improvement at all.
Essentials, not luxuries, are driving stress. 65% cite the cost of everyday necessities as their biggest strain.
92% cut back spending, even on essential items.
Households are draining their safety nets. 49% dipped into savings, and 24% took on debt—clear signs of widespread financial distress.
Americans are increasingly turning to outside help. 46% rely on more family support, government aid, or debt than last year; only 13% rely on less.
Most households lack a meaningful financial buffer. 60% say they could cover three months or less of expenses if they lost their job.

Most Americans Are Struggling to Afford Basic Living Expenses

Survey data indicates a widespread cost of living crisis, echoing what many readers may already be feeling: higher prices, slower wage growth, and a growing sense that it's getting harder to keep up.

Infographic depicting the percentages of Americans who can afford essentials, extras, and future savings.

According to the survey:

9% say they often cannot afford basic living expenses.
15% can afford essentials but struggle.
27% can cover essentials but rarely have money left.
31% can cover essentials and some extras.
Only 17% can comfortably cover essentials and save for the future.

What this means: With prices climbing faster than paychecks, financial stress is becoming a daily reality for many. That imbalance is forcing people to make tougher choices and reevaluate what they can realistically afford, even when it comes to essentials like groceries and healthcare.

Affordability Has Worsened for Many

Compared to last year's wage concerns, many say affordability has stayed the same or even gotten worse, highlighting just how persistent the cost-of-living crunch has become for many households.

35% say affordability stayed the same.
39% say their ability to afford essentials has worsened.
26% have seen improvement.

What this means: Most people aren't feeling any meaningful financial relief. Instead, the rising cost of living is becoming a long-term reality rather than a temporary spike. Many households are stuck in a holding pattern where costs keep rising while salaries stagnate.

Everyday Essentials Are the #1 Financial Stressor

With only 12% stating that their pay has kept pace with rising costs, the majority of people are facing financial stress across multiple areas of life. Survey respondents reported that the top contributors to this financial strain are:

Prices for everyday essentials: 65%
Housing costs: 43%
Retirement savings: 38%
Healthcare costs: 37%
Lack of emergency savings: 37%

What this means: Only a small share of people feel their income is keeping up, indicating extensive affordability challenges across the board. As a result, most people are navigating sustained financial strain that affects daily choices, long-term planning, and overall well-being.

Americans Are Cutting Back on Everything, Even Essentials

Rising costs are pushing people to tighten their belts in real, tangible ways. According to the survey, they're cutting spending across a wide variety of day-to-day costs, including:

Dining out: 69%
Vacations: 55%
Groceries: 40%
Housing upgrades or moves: 35%
Retirement contributions: 29%
Healthcare visits or prescriptions: 21%

Only 8% of survey respondents cut nothing.

What this means: Many are being forced to adjust their spending habits to manage rising expenses—from food to medications and everything in between. The financial squeeze is now part of daily living for most people.

Half of Americans Have Dipped Into Savings to Survive

To cope with growing financial stress, people are pulling from savings, delaying major milestones, leaning on support systems, and doing whatever else it takes to make ends meet. The survey found that:

49% dipped into savings
42% delayed major purchases or milestones
28% picked up additional income
24% took on debt
22% borrowed from friends/family
11% relied on government or community aid

What this means: When households begin tapping savings, delaying milestones, and taking on new debt to manage daily expenses, it signals a broader affordability crisis. The gap between income and cost of living is now impacting both short-term survival and long-term financial stability.

Americans Are Turning to Outside Help

Many are increasingly relying on alternative support:

46% rely on more outside help than last year.
41% rely on the same amount of help as last year.
Only 13% rely on less help.

What this means: Americans are leaning more on outside support to stay afloat, and nearly half say they rely on more help than they did just a year ago. This trend shows that many households can no longer manage rising costs on their own.

Most Households Have Very Little Financial Cushion

If they lost their job, they would be able to cover expenses for:

Less than 1 month: 24%
1–3 months: 36%
4–6 months: 18%
More than 6 months: 22%

What this means: With the majority of Americans able to cover only a few months of expenses at most, it's clear that many households are living without meaningful financial reserves. This lack of cushion heightens the risk of hardship if income suddenly stops.

Methodology

The findings provided were gathered through a survey of 1,011 U.S. adults on December 7, 2025. Participants answered a wide range of questions about income, financial stress, cost of living, wage trends, employer transparency, and future economic outlook. Question formats included multiple choice, scaled responses, and multi-select options.

About Resume Now

Resume Now is a powerful resource dedicated to helping job-seekers achieve their potential. Resume Now's AI Resume Builder is a cutting-edge tool that makes creating a resume fast, easy, and painless. Resume Now has been dedicated to serving job seekers since 2005. Alongside its powerful AI Resume Builder and stylish ready-to-use templates, it also features free advice for job seekers at every career stage, guides for every step of the hiring process, and free resources for writing cover letters. Resume Now is committed to supporting job seekers and workers alike and has conducted numerous surveys related to the experience, trends, and culture of the workplace. These surveys have been featured in Business Insider, CNBC, Fast Company, Yahoo!, Forbes, and more. Keep up with Resume Now on LinkedIn, Facebook, X, and Pinterest.

For press inquiries, contact Alexa Kalechofsky at alexa.kalechofsky@bold.com.

Keith is a Certified Professional Resume Writer (CPRW) and trusted media source in the career industry with over a decade of experience helping job seekers stand out.