Daily Budget App Adoption Stalls at 14%

Amid persistent financial anxieties affecting most Americans, a new report highlights that advanced budgeting tools offer an antidote to widespread financial stress, yet remain underused.

According to the June installment of  “New Reality Check: The Paycheck-to-Paycheck Report” from PYMNTS Intelligence, financial fragility remains a pervasive issue across the U.S. consumer base. The Paycheck-to-Paycheck Index hit a new high of 68.4% in May, indicating that 684 out of every 1,000 Americans are spending their monthly income on essential payments, with 24.2% reporting struggles to cover their bills — a figure that has climbed for the third consecutive month.

This environment fosters discomfort, as 6 in 10 consumers feel uneasy when contemplating their finances, and a 24% admit to high anxiety, alongside 36% expressing some level of concern. While lower-income individuals predictably bear the brunt of this stress at 71%, even a portion of middle and high earners report worry, demonstrating a broad-based financial apprehension that transcends income brackets and generally impacts all age groups, with baby boomers being a slight exception. This pervasive financial stress underscores a market need for effective financial management solutions.

Help With Tightening the Belt

Despite the widespread angst, the report offers a clear path toward greater financial comfort through advanced personal finance tools and specialized budgeting apps. The study reveals that over half (53%) of consumers who live paycheck to paycheck and struggle to pay bills, but use advanced budgeting tools like Intuit’s Credit Karma or YNAB, report feeling financially comfortable. This contrasts sharply with only 12% of those relying on rudimentary tools and almost none who do not budget at all.

Overall, nearly half (47%) of advanced budgeters — defined as 37% of consumers using expense trackers or specialized apps — feel comfortable with their finances, compared to 34% of basic budgeters and 39% of non-budgeters.

Furthermore, daily budget reminders are cited as a simple yet highly effective method for improving financial sentiment, with 54% of daily nudge recipients feeling comfortable. Yet, the report highlights a critical disconnect: these powerful tools are underutilized, with only 14% of consumers opting for daily reminders and a mere 21% creating or revising a budget in the last year.

Key findings from the report include:

Prevalence of Financial Stress: The PYMNTS Intelligence Paycheck-to-Paycheck Index reached 68.4% in May, signifying that 684 out of every 1,000 Americans are living paycheck to paycheck. Concurrently, 24.2% of consumers are struggling to pay their bills, marking a third consecutive monthly increase.

Impact of Advanced Budgeting Tools: Among consumers experiencing both paycheck-to-paycheck living and difficulty paying bills, 53% who use advanced budgeting tools report feeling financially comfortable, compared to just 12% of those using basic tools and nearly none among non-budgeters.

Underutilization of Engagement Features: Despite 54% of consumers who receive daily budget reminders feeling comfortable with their finances, only 14% of consumers choose to receive daily nudges from their budgeting tools, and 40% receive them less than once a month or not at all.

The report explores characteristics of different budgeting personas, identifying advanced budgeters (37% of consumers), basic budgeters (44%), and non-budgeters (19%). It notes that higher-income households (over $100,000 per year) and younger consumers, particularly Gen Z (55%) and millennials (48%), are more likely to be advanced budgeters.

While budgeting tools offer clear benefits for future planning and debt reduction, the study suggests that consumers often resort to reactionary spending cuts, such as reducing discretionary spending (36%) or postponing major purchases (28%), rather than engaging in proactive budgeting.

This indicates that despite recognizing the need for financial stability, many consumers are not prioritizing the very tools that could provide it, perhaps due to the “complex psychology” where confronting financial health, while powerful, is “not necessarily comforting.”

The findings, based on a survey of 2,040 U.S. consumers in May 2025, highlight an opportunity for financial institutions and FinTech innovators to enhance engagement with budgeting solutions, fostering greater financial literacy and comfort across demographic segments.