After a series of staggering global tariffs announced by U.S. President Trump on Friday and causing chaos within the stock market, JP Morgan raised the probability of a recession happening in 2025 from 40 to 60 percent.
And considering a continued cost of living crisis since 2022, it should come as no surprise that Americans are focusing on their finances and taking money more than ever before.
According to a new study polling 4,000 Americans conducted by Talker Research on behalf of Chime, 45 percent of Americans said they’re more likely to discuss their finances than they were five years ago. Moreover, 61 percent of people said that being frugal is not as looked down upon as it was 10 years ago — with 72 percent of people polled stating that talking about money is more socially acceptable than ever before.
Janelle Sallenave, chief spending officer at Chime, said that when people are open about money, it allows for learning, growing and making financially informed decisions. Gen Z is concerned about buying what they want at grocery stores (32 percent), while Millennials are focused on growing their money (31 percent). Meanwhile, older generations are most concerned with having money left over after paying their bills and being able to put savings away.
Overall, survey respondents noted that talking more openly about money enables better financial advice (42 percent), less shame about struggling financially (25 percent) and creates healthier money habits (32 percent).
And on the topic of health and finance, MoneyLion and Mastercard released their new “Health Is Wealth” report with findings from the study commissioned and conducted by The Harris Poll of more than 2,000 U.S. adults. Overarching findings revealed that not only is a lack of financial comprehension impacting economic mobility, but it can also affect the physical and mental well-being of American consumers.
Notably, 66 percent of Americans reported that they experience physical symptoms because of financial stress — with 59 percent of people polled stating they have delayed doctor visits or working out due to financial concerns. The top health-related activities skipped include dental care (31 percent), doctor’s visits (25 percent), making healthier food choices (23 percent) and mental health care (18 percent).
The most common physical symptoms Americans face as a result of financial stress include trouble sleeping (40 percent), headaches (37 percent) and a lack of energy or motivation (33 percent). Younger Americans are also more likely to be impacted physically by financial stress — with 77 percent experiencing at least one symptom and 47 percent experiencing headaches.
Inflation is also having a major impact on consumers’ mental and physical health — 67 percent of Americans say that price hikes increase stress (38 percent), increase anxiety (36 percent) and decrease their ability to afford healthy food (30 percent).
Most Americans (75 percent) also agreed if they improved their financial literacy, they could be healthier. People confident in their financial literacy are less likely (63 percent versus 80 percent) to experience physical symptoms as a result of financial stress in comparison to those who are not confident.
“Financial literacy equips individuals with the knowledge and skills to make informed decisions, leading to a healthier and more secure future,” said Stefany Bello, senior vice president of digital players, fintech and enables for North America at Mastercard.
And with the deadline to file taxes on April 15 around the corner, Americans are more dependent than ever on their returns than in previous years, according to a recent study conducted by Qualtrics on behalf of Credit Karma.
More than 1,000 U.S. adults were polled for the study, which found that 49 percent of taxpayers are dependent on their return to make ends meet, versus last year. Americans are using their refund to pay for necessities (41 percent), pay debt (35 percent) and put away in their savings (25 percent).
Forty-one percent of Gen X and 25 percent of Gen Z said they expect to take on debt to pay their tax bills. Moreover, 37 percent of Millennials noted they filed their taxes earlier to get their refund to buy essential items such as groceries.
While half of Americans have become dependent on their tax refund, a third of Americans view their refunds as “free money.” Their consumer spending leans toward Americans who are using their refund to pay for travel (16 percent), buy nonessentials (14 percent) or pay for experiences such as concerts or sporting events (12 percent).
“The many Americans not only choosing to receive their tax refunds early this year, but also using them for essentials, bills and debt repayment is proof that people are feeling financially burdened and struggling to keep up with the rising cost of living,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma.