Rising prices and uncertain job prospects are shaking Americans’ sense of financial stability. As everyday costs climb and paychecks stretch thinner, many consumers are losing confidence in their ability to stay afloat—signaling deepening concerns about the health of both household finances and the broader economy.
Today, more consumers are struggling to get by. More than one in four, or 26%, had difficulties paying their bills last month—the highest share in at least two years. Overall, nearly seven in 10 consumers are now living paycheck to paycheck, with varying degrees of difficulty in paying monthly bills—the second-highest level over two years and nearly equal to the record high this summer.
Some groups are hit harder than others. For instance, 34% of consumers living in rural areas struggle to pay their bills. This share is far higher than the 24% of suburban individuals who report the same. In fact, even among high-income consumers in households earning $100,000 annually or more, financial pressure persists in rural areas.
Other lifestyle factors are also linked to financial strain. Forty-four percent of single adults with children are having difficulties paying their monthly bills. They are more than twice as likely as married individuals without children to face such challenges. Age plays a role, too. Bridge millennials—the cusp generation spanning older millennials and younger Gen X individuals—are struggling more than other generations.1
These are just some of the findings detailed in “Seven in 10 Americans Live Paycheck to Paycheck. And Confidence Is Cracking.” This latest installment of “New Reality Check: The Paycheck-to-Paycheck Report,” a PYMNTS Intelligence exclusive series, delves into how inflation and employment instability are impacting consumers’ financial prospects. The report is based on a survey of 2,030 U.S. consumers conducted from Sept. 8, 2025, to Sept. 26, 2025.
Consumer Sentiments
Rising costs are souring how consumers, even those not living paycheck to paycheck, view the economy.
Against this backdrop of increased financial strain, consumers are feeling bleak about the U.S. economy. Nearly half (46%) report a pessimistic outlook versus just 34% who are optimistic. There’s no rest for the weary: The majority (52%) of individuals already struggling to pay bills believe the economy will get worse.
Feelings of pessimism about the overall economy are linked with consumer expectations for their own bank accounts. Seventy-two percent of those who expect their income to decrease in the next year think the economy will get worse. By contrast, only 32% of those expecting increased income think the same.
Nine in 10 consumers are currently feeling financial stress. High costs are at the root of these difficulties. Specifically, 56% of consumers say the cost of food is a stressor. Additionally, 55% say the same of inflation, and 23% say rising costs are their greatest source of financial stress.
Housing and utilities costs are also causing strain for many. Notably, financially struggling consumers are three times as likely to cite housing costs and debt as key stressors compared to those not living paycheck to paycheck.
Financial Well-Being
Consumers measure their economic well-being in different ways.
Different consumers have different definitions of financial well-being. Overall, 38% of consumers consider the amount of their household savings to be the most reliable. But 31% measure financial well-being by household income, 18% by the ability to handle unexpected expenses and 12% by debt levels. Those struggling to pay bills are the most likely to gauge by income or debt levels. Meanwhile, financially secure consumers are most likely to assess by savings.
Gen Z consumers are more likely than older generations to gauge financial well-being by their income. Bridge millennials are the most likely to measure by savings. Older generations—Gen Xers and baby boomers—are the likeliest to assess financial well-being by the ability to cope with unexpected costs.
To feel financially secure, nearly half (45%) of consumers say they need emergency savings equal to six months of essential expenses. That figure rises to 47% among consumers not living paycheck to paycheck. Individuals not living paycheck to paycheck are also more likely than others to cite their ability to handle an unexpected household expense of $2,000 without borrowing as a key goal for feeling financially secure.
For those living paycheck to paycheck, financial stability is focused on making ends meet.
For consumers experiencing more financial strain, stability looks different. Among individuals struggling to pay bills, financial security often means simply covering everyday expenses without borrowing. Specifically, 45% cited this goal as key to their financial security, more than said the same of any other objective.
Even as consumers adjust their financial goals to their economic circumstances, most struggling individuals still see their financial objectives as beyond their reach. In fact, nearly half (46%) of struggling consumers say that having their household cover its regular expenses without borrowing is not achievable.
By contrast, many consumers in households not living paycheck to paycheck have already met their financial security goals. For instance, 51% of these individuals can already spend on discretionary items without checking their budget. Another 41% believe they could achieve this goal if they tried.
Job Market Woes
Consumers are not finding the solution to their economic difficulties in the job market.
Consumers are facing a challenging job market. In August, according to the most recent Bureau of Labor Statistics data, the long-term unemployed made up one-quarter of all unemployed people, the highest percentage since February 2022. In a separate data release, the BLS said that the number of unemployed Americans—7.2 million Americans—is higher than the number of job openings for the first time since 2021.
Employed individuals are also facing difficulties. Three out of five surveyed do not expect salary increases in the next year, and 10% feel their job is unstable.
Retail workers are facing the greatest uncertainty. One in five consider their job unstable. One in 10 qualified healthcare workers say the same. In other sectors, instability is in the single digits.
Income, more so than financial lifestyle, is strongly linked with job instability. Nineteen percent of employees in households earning less than $50,000 a year report instability, as do 14% of those struggling to pay their bills.
As the job market overflows with candidates, employees are not seeing good prospects outside their current roles. Only 34% report believing that they are highly likely to be able to find a new job that fits both their qualifications and wage demands before the year’s end if needed. By contrast, 41% say they are slightly or not at all likely.
It seems that some consumers may see ageism playing a role here. Gen X individuals and baby boomers report the lowest levels of confidence.
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Methodology
“Rising Costs and Job Insecurity Are Eroding Consumer Confidence” is the latest installment of “New Reality Check: The Paycheck-to-Paycheck Report,” a PYMNTS Intelligence exclusive series. It is based on a survey of 2,030 U.S. consumers conducted from Sept. 8, 2025, to Sept. 26, 2025. The report examines how inflation and employment instability are impacting consumers’ financial prospects. Our sample was balanced to match the U.S. adult population by age, gender and income.
1. PYMNTS Intelligence uses the following birth dates and approximate age ranges in 2025 for generational cohorts: baby boomers: born in 1964 or earlier and now aged 61 or older; Generation X: born between 1965 and 1980 and now aged 45–60; bridge millennials: born between 1978 and 1988 and now aged 37–47; millennials: born between 1981 and 1996 and now aged 28–44; and Generation Z: born in 1997 or later and now aged 28 or younger.↩
