LONDON, May 26, 2025 /PRNewswire/ — New data from nudge’s 2025 Global Financial Wellbeing Report suggests that while the new administration aims to ‘Make America More Affordable‘, many Americans remain doubtful. Instead of anticipating relief, they expect their financial struggles to intensify over the next four years due to inflation, debt, and rising living costs.
A significant decline in positive emotions around money highlights a growing sense of hopelessness and economic anxiety: the need to prioritize financial literacy is now.
- There has been a 59% decline in financial optimism – only 28% now feel hopeful about their finances, down from 68% last year.
- 63% anticipate inflation will worsen their financial situation, making everyday essentials even less affordable.
- 54% of Americans report increased stress due to debt.
With inflation fears, many are preparing to cut essential living costs
- 46% fear rising energy costs, while 57% worry about food prices, leading to widespread concerns about basic living expenses.
- The US has the highest ‘debt stress’ globally, with 1 in 5 (20%) respondents feeling overwhelmed by their debts compared to the global average of 13%.
- In response to growing financial pressures and uncertainty about the future, 83% of respondents in the US are actively working to improve their financial literacy skills and/or knowledge.
The report reveals a deep-seated lack of confidence in US economic recovery, with many Americans unconvinced that government policies will lead to a meaningful reduction in financial strain.
While financial literacy levels are consistent across global markets, Americans report higher levels of financial anxiety (37% in the US vs. 31% globally), with many worried they won’t be able to maintain their standard of living. In the US, individuals with good or excellent financial literacy are better equipped to manage their finances, making them 16% less likely to experience stress (36% vs. 52%) and 13% less likely to feel anxious (33% vs. 46%) than those with poor or very poor financial literacy.
Chronic financial stress is impacting mental and physical health
The research also highlights the profound toll financial stress is having on mental and physical health, reinforcing the long-term consequences of economic uncertainty:
- 37% experience anxiety, while 27% report depression linked to money worries, signalling a mental health crisis driven by financial concerns.
- 42% of Americans report financial stress affecting their mental health, with anxiety levels rising in correlation with economic instability.
- 30% say financial stress keeps them awake at night, leading to sleep deprivation and compounding overall stress levels, while 16% link it to high blood pressure—underscoring the physical health consequences of prolonged financial hardship.
Compared to other countries surveyed:
- Americans are the most likely to feel their wellbeing decline due to financial cutbacks, impacting overall life satisfaction.
- Americans feel the least confident in understanding and managing potential tax changes (23% US vs 30% global average), which could further strain household budgets.
- Americans are the most likely to experience relationship strain due to financial stress (21% US vs 18% global average), highlighting the broader social implications of economic anxiety.
Jeff Miller, Vice President US at nudge and Certified Financial Education Instructor, commented: “Economic uncertainty is hitting Americans hard. Many are struggling to keep up with rising costs and financial obligations. Financial literacy is more crucial than ever, helping people navigate the effects of trade tariffs, healthcare funding cuts, and increased interest rates. Without the right financial education, many individuals may find themselves unable to make informed decisions that protect their financial wellbeing.
“Now is the time to prioritize financial education, equipping individuals with the knowledge to navigate economic uncertainty. Employers, policymakers, and individuals must work together to build financial resilience. Without proactive financial planning, many will continue to feel trapped in an ongoing cycle of economic struggle.”
2025 Global Financial Wellbeing Report is available here: https://nudge-global.com/campaigns/2025-global-financial-wellbeing-research/
About nudge
nudge is impartial financial education – for everyone, everywhere. nudge is the solution to guide global communities into stronger financial health. It combines behavioral psychology, data, and personalized education to empower people to develop their financial skills and knowledge to achieve financial resilience. Without conflicting financial products, nudge is inclusive and trusted by millions worldwide.
SOURCE nudge
