The majority of Americans are dissatisfied with their savings, according to a survey

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In 2024, Americans faced several financial challenges that affected their ability to save and manage their finances effectively. Inflation continued to be a major concern, driving up the cost of basic necessities such as housing, groceries and utilities and straining household budgets.

Credit card debt also reached record levels. Rising interest rates on credit cards and loans have made it harder for consumers to pay off debt. In addition, many households have spent the excess savings they accumulated during the pandemic, leaving them with less of a financial cushion.

With all this in mind, Yahoo Finance has partnered with Marist Poll survey more than 3,000 US banked adults (those with at least one checking or savings account) to shed light on the financial struggles and concerns households face. Here’s what Americans say are their biggest obstacles to saving and how they feel about their finances ahead of 2025 (See our full methodology here.)

Only 22% of respondents stated that they were very or completely satisfied with their savings, while 35% were very or completely dissatisfied. Forty percent of women are very or completely dissatisfied with their savings, compared to 28 percent of men.
Almost half (48%) of respondents saved less in 2024 compared to the previous year, and only 21% saved more.
Almost half (47%) of respondents cite the cost of living as the biggest obstacle to saving.
One third (33%) of respondents would not be able to cover their bills for even a month if they lost their income.
44% of respondents believe they will save more in 2025, with the highest optimism among Generation Z (63%) and Millennials (53%).
60% of respondents say they are more optimistic about their finances for the coming year with Donald Trump as president. This optimism crosses generational lines, with Generation Z (70%) being the most optimistic.

We decided to learn more about how higher costs and competing financial obligations have affected Americans’ savings. Here’s what we found:

In a post-COVID-19 world, the rising cost of living has dominated financial news headlines. Many households felt the pinch as inflation hit a 40-year high of 9.1% in June 2022. Although the rate of inflation has since moderated (the consumer price index rose 2.7% year-on-year in November 2024), the skyrocketing costs of housing, groceries and other essentials are here to stay for the foreseeable future.

Overall, our survey found that the majority of respondents described the cost of living in their area as “unaffordable” (45%), while another 22% said it was not affordable at all.

On the other hand, Gen Z respondents were more likely to describe the cost of living as “very affordable” (9%) compared to other generations: Millennials (8%), Gen X (3%) and Baby Boomers/Silent/Greatest Generations (2% ).

Not only are respondents unhappy with the cost of living in their area, but most struggle to pay for necessities while saving money for the future.

Slightly more than a quarter of respondents say that they live comfortably. Older Americans (baby boomers/silent/prime generations) are more likely to say they live comfortably (40%).

Meanwhile, 31% of respondents can cover their basic expenses with little money left over for extras, while another 30% can cover their basic expenses. And 12% say they don’t have enough money to cover basic living expenses.

Everyone’s savings goals are different, based on lifestyle, family size, debt and more. When it comes to whether Americans are satisfied with how much they’ve saved so far, the results are mixed.

Thirty-five percent of respondents in our survey are not satisfied with the amount of money they have saved. Women (40%) are more likely than men (28%) to say they are very or completely dissatisfied with their savings — perhaps unsurprising given the financial challenges many women face, including the gender pay gap and greater caregiving burdens and care. responsibilities.

The past year has proved difficult for American savings. Despite historically high interest rates on savings accounts, consumers were also faced with inflation, skyrocketing interest rates on debt, record high education costs, and more.

Almost half of our survey respondents said they saved less money in 2024 compared to 2023; only 21% said they were saving more money. Almost a third of respondents said they saved about the same amount.

Overall, women were more likely to say they saved less money in 2024 than in 2023 (53% vs. 42% of men), especially Millennial and Gen X women (57% vs. 59%, respectively).

With a new year – and a new administration – we tried to find out how Americans believe their saving habits will change in 2025.

It’s not all doom and gloom, especially for younger savers. Younger Americans are more likely to say they will save more: 63% of Gen Z and 53% of Millennials vs. 44% of Gen X and 25% of Baby Boomers/Silent Generations/Best Generations.

The most likely to save approximately the same amount in 2025 are those from the baby boomer/silent/prime generation (44%). However, women are more likely than men to say that they will save less this year (27% compared to 20%).

We wanted to learn more about the various challenges savers face that prevent them from reaching their savings goals.

Almost half of respondents (47%) pointed to the cost of living as their biggest obstacle when it comes to saving money. Other common reasons included unexpected bills or expenses (11%), too many financial obligations (10%), and a change in income or employment status (10%).

Older Americans are most likely to say they don’t face challenges saving money (19%).

Generation Z and Millennials are most likely to ask family and friends for help in financial crises

During times of financial hardship, there are several ways you can cover your bills — some of which are better for your bottom line than others.

The largest percentage of respondents (26%) say that their solution would be to go into savings. Fifteen percent say they would reduce their spending, while 14% would choose an extra job or more hours at work.

Another 10% of respondents say they would ask a family member or friend for help in a financial crisis, with Generation Z and Millennials most likely to do so (15% for both).

Generation X and baby boomers/silent/prime generations are more likely to put their expenses on a credit card (10%).

Most experts recommend saving at least three to six months’ worth of expenses in an emergency fund. However, given the many barriers to saving Americans face, not everyone can meet this guideline.

The average time that respondents could cover their expenses with money readily available in their checking or savings account is seven months.

However, about 1 in 3 respondents say they would not be able to cover their bills and expenses for even a month. Gen Z (38%) and Millennials (41%) are more likely than other generations to say they couldn’t pay their bills for a month.

In contrast, Generation X and Baby Boomers/Silent Generations/Top Generations (19% for both) are more likely than younger generations to have enough savings to last them a year or more.

For better or worse, with a new administration often comes a new economic plan. And most Americans expect positive changes.

Most respondents (60%) are more optimistic about their personal finances with Trump as the next president. This was the consensus among generations, and Generation Z was the most optimistic (70%). Baby boomers/silent/greatest generations were the most pessimistic (46%).

This survey of 3,131 adults was conducted from December 3 to December 5, 2024 by Marist Poll sponsored in partnership with Yahoo Finance. Adults 18 years of age and older residing in the United States were contacted through a multi-method design: telephone with a live interviewer, text message, or online. All potential respondents were tested for age.

Probability-based sampling frames include RDD landline plus listed landline, RDD cell phone sample plus cell phone sample based on billing address to account for inbound and outbound mobility within the state. These samples were provided by Dynata and were used to administer web-based surveys collected via telephone and SMS. A sampling frame based on aggregated online non-probability survey panels was randomly selected from Cinto’s digital insights platform for managing surveys collected over the web.

Survey questions were available in English or Spanish. All samples were selected to ensure that each region was represented in proportion to its adult population. The samples were then combined and balanced to reflect the 2022 American Community Survey five-year estimates for age, sex, income, race, and region.

Results for all adults (n=3131) are statistically significant within ±2.1 percentage points. The results for households with banks (n=2828) are statistically significant within ±2.2 percentage points. The design effect for this study is 1.4 which is included in the calculation of all reported error margins. The party breakdown for this survey among registered voters is 38% Democrat, 36% Republican and 25% independent.

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