2025 was a challenging year for Americans. Dissatisfaction with the cost of living dominated across nearly every group, regardless of political affiliation. Seven-in-ten Americans (70%) say they are displeased or very upset with changes in the cost of living in the last year. That number rises to 85% among the very stressed and remains a majority even among the thriving (51%). Only 15% of Americans overall say they are pleased with cost-of-living changes.
Angus Reid USA conducted an online survey from January 16 – 20, 2026, among a randomized sample of 1,838 American adults. Today, we’re diving into the data and unpacking the factors driving their discontent.
Wear on the Wallet
A little inflation is good for the economy. Last year, however, it continuously exceeded the 2% target, leaving 39% of Americans worse off than they were 12 months ago. That’s nearly double the 22% who say they are better off. Another 35% say their situation is unchanged, while 4% are unsure.
This deepening economic strain comes at a time when most Americans are already living paycheck to paycheck. Just 27% say they could handle an unexpected expense of more than $1,000 this month. The vast majority are unable to weather such an expense:
- 12% could manage up to $500.
- 13% could handle between $500 and $1,000.
- 19% could only handle up to $100.
- 15% say they could not afford any unexpected expense.
These findings raise the question: when so many Americans are unable to afford unexpected, in some cases life-altering costs—such as car repairs, medical bills, or household emergencies—is it a deficiency in our system? And what social programs should be in place, if any, to help bridge the gap?
Low Income. High Financial Stress.
It’s no surprise that low-income households have been hit hardest by inflation in the last year, though the sense of financial backsliding is felt across income brackets:
- $50K or less annual income: 43% say they are worse off, compared to just 16% who feel better.
- $50K – $99K annual income: 40% say they are worse off and 25% better off, while roughly one-third (34%) say they are about the same as last year.
- $100K or more: 31% say their finances have deteriorated over the past year.
And affordability isn’t the only challenge. For nearly half of Americans (43%), cost-of-living stress is compounded by concerns that they or someone in their household could lose a job because of the economy.
Dept also plagues Americans, with 43% saying they have too much. Notably, only 22% say they are never really stressed about money, underscoring the prevalence of financial anxiety even among those who are managing day-to-day expenses.
Party Anxiety
Income is a pervasive indicator of economic stress, but in 2025, so was political affiliation. Democrats are the most likely to be very stressed (38%), followed by Independents and others (30%). MAGA Republicans are the least likely to report high stress (17%), and the most likely to say they are thriving (29%).
Brighter Days Ahead?
Despite struggling in 2025, most Americans expect their economic situation to stay the same or improve in the next year:
- 33% say they expect to be better off one year from now.
- 27% say they’ll be worse off.
- 26% anticipate no change.
- 13% say they are unsure.
Still, even among lower-income households, optimism slightly outweighs pessimism, suggesting that while many feel bruised by the past year, a significant share is hopeful that their fortunes may improve.
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