As inflation continues to shape consumer behavior, Americans are adjusting their financial habits, delaying major life plans, and seeking new ways to manage their money. According to the second annual Wells Fargo Money Study, 76% of Americans have cut back on spending, a notable increase from 67% in 2024. The impact is even more pronounced among younger generations, with 82% of Gen Z adults and 79% of Millennials reporting reduced spending. Even among teens, 60% say they are spending less in response to economic conditions.
“Consumer behaviors are shifting. The value of the dollar and what it is providing may not be as predictable anymore, which seems to be more pronounced for younger Americans,” said Michael Liersch, Head of Advice and Planning at Wells Fargo.
Financial Trade-Offs: Life Plans Put on Hold
With higher prices stretching household budgets, 60% of Americans say they are making tough financial choices, and 55% report delaying major life plans. Among those postponing milestones:
- 74% have delayed travel plans
- 39% have postponed home renovations
- 30% have delayed moving or purchasing a home
- 17% have put off further education
- 14% have delayed marriage
- 13% have postponed retirement
The study underscores the reality that many households are struggling to balance financial goals with the rising cost of living.
Sticker Shock: Prices Far Higher Than Expected
A major driver of these shifting behaviors is continued sticker shock, with 90% of Americans reporting surprise at the cost of common expenses like dining out, event tickets, and even bottled water. Actual prices are often 55% to 200% higher than expected.
- Dining out: Expected cost $23, actual cost $40 (74% higher)
- Gas: Expected cost $40, actual cost $62 (55% higher)
- Concert/sporting event tickets: Expected cost $70, actual cost $150 (114% higher)
- Bottle of water: Expected cost $1, actual cost $3 (200% higher)
- Greeting card: Expected cost $3, actual cost $6 (100% higher)
- Video game download/streaming service: Expected cost $20, actual cost $50 (150% higher)
“Spending is one of the most important factors to staying on track with your goals,” said Liersch. “I would encourage people to continue to evaluate their financial choices and align their spending with what matters most to them.”
Americans Want to Learn Better Money Management
Despite financial strain, Americans are taking a proactive approach to improving their financial habits. As well as wanting to learn new money behaviors, 86% specifically mention wanting to be more thoughtful and intentional about their spending.
“These insights highlight that Americans are not just winging it. They are being extraordinarily introspective and thoughtful as they navigate their financial priorities and work toward achieving their financial goals,” said Liersch.
Even with this growing awareness, 61% of respondents say they need a mental reset to improve their financial outlook. Among the challenges holding them back:
- 48% say habits are hard to change
- 43% struggle to balance short-term needs with long-term goals
- 32% feel they lack financial knowledge
- 29% support multiple dependents
- 15% feel peer pressure influences spending
As Americans work to navigate these challenges, many are increasingly turning to financial advice. The percentage of people seeking outside guidance has risen from 24% last year to 36% this year. Younger generations are even more eager to learn, with 54% of teens, 61% of Gen Z adults, and 46% of Millennials actively seeking financial advice.
“Younger generations are innovating and leading the way in so many areas. In this case, they are leading in the desire to learn more about money and make informed financial decisions. And Americans are saying: Now is the time,” said Liersch.
Self-Perception and Money: Americans Judge Themselves More Than Others
While most Americans claim not to judge others’ financial situations, many are highly self-conscious about their own money matters. The study found that 87% of Americans say they do not care how much money others have, yet 56% keep their own financial situation private, with 32% citing fear of judgment.
More than half (53%) said revealing their financial standing would create stress. Many also compare themselves to others, with 47% admitting to feeling envious of wealthier individuals, and 37% saying they fixate on the idea of becoming rich.
“Americans appear comfortable with other people being authentic about their financial situation, which is encouraging to see. So now it’s time to look inwardly and overcome our own self-judgment,” Liersch said.
Looking Ahead: A Shift Toward Financial Intentionality
Despite financial uncertainty, 86% of Americans say they have a clear picture of their financial goals, and 87% believe now is a good time to save. While inflation continues to impact household budgets, many consumers are active ly working to reshape spending habits and align financial decisions with long-term objectives.
As Americans strive to be more intentional with their money, the coming years could see a shift in how financial success is defined—not just by wealth accumulation, but by financial stability and personal fulfillment.
Click here to access “The 2025 Wells Fargo Money Study.”
