High living costs are at the forefront of financial worries for many Americans. According to a recent Gallup survey, 31% of respondents named inflation as their top financial concern. This figure, while slightly lower than a peak of 41% in 2024, remains near the highest levels seen in the past two decades.
Energy prices have surged this year, with 13% of Americans calling it a top issue—a 10-point increase from last year. This ties energy concerns with housing costs as the second biggest worry. Healthcare expenses also make the list, with 8% highlighting it consistently since 2020.
Overall, affordability is a major theme this year. Along with inflation and energy costs, worries include housing, healthcare, college fees, transportation, and childcare. Only a small percentage cited taxes (6%) and the state of the economy (2%) as concerns.
A significant 55% of Americans feel their financial situation has worsened, a trend that’s been stable since 2023. In contrast, fewer than half (46%) describe their finances as “excellent” or “good.” More people are calling their situation “only fair” (35%), reminiscent of economic sentiments during the years just before the Great Recession.
Americans’ outlook for the future isn’t bright either. A substantial 55% foresee their financial situation declining. This has been a persistent trend for five years, echoing experiences during earlier economic downturns.
Specific worries remain high as well. Many express anxiety about retirement savings (62%) and the ability to pay for healthcare in a serious illness (60%). Concerns about maintaining their standard of living and investment returns are also significant, with 54% worried about each. Everyday costs weigh heavily too, with 48% concerned about healthcare expenses and 41% about routine bills.
These financial concerns have only intensified over the last few years, particularly since inflation spiked after 2021. Although inflation has since decreased to under 3% for most of 2025, it has not returned to the low levels typical before the pandemic. Many consumers remain wary, reflecting a cautious financial outlook.
In these uncertain times, it’s clear that many Americans are feeling the weight of high costs and diminishing financial confidence. As living expenses continue to rise, it will be crucial to monitor how these economic pressures affect personal finance moving forward.
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