Each quarter Ramsey Solutions takes a look at the state of personal finance in the USA and reports back on what Americans are worried about right now — in terms of their personal finance.
Perhaps unsurprisingly, right now we’re worried about the cost of living, the impact of tariffs on consumer prices, and retirement. But we’re also worried about other things that we probably shouldn’t be. Let’s take a look at the results of the latest survey.
Overall, survey respondents are very concerned about the cost of food (41%) and housing (39%) while a much smaller percentage (26%) are very worried about the price of gas, and only 28% identify as very concerned about their debt levels. Surprising perhaps, because total household debt increased by $185 billion in the second quarter of 2025, to hit $18.39 trillion — indicating that people might be burying their heads in the sand over their debt levels.
33% of respondents stated that they’re struggling or in crisis with money, while 52% say they’re living paycheck to paycheck, and only 25% say they’re better off than a year ago. While the reasons for this are likely complicated, 66% of Americans belief that tariff policies have had a negative effect on their money, and 31% are concerned that social security benefits won’t be around when they reach retirement age, putting stress on younger workers to bolster personal pensions.
As is always the case with this kind of study, different groups are worried about different issues. Almost half of Millennials and Gen X have concerns about social security, whereas Boomers — most of whom are already claiming — are less concerned.
Women are more likely to feel that the US economy overall is going in the wrong direction, as are those from low-income households, but perhaps surprisingly the most pessimistic group about the economy overall are the Boomers, who also are the most likely to claim that they personally are financially stable. An indication perhaps that this group do appreciate that the privileges of a stable job market and affordable housing are rapidly disappearing.
What is perhaps notable in this report is that many Americans still have their priorities wrong when it comes to money. While many seem to be ignoring the level of their actual debt, they still care about being able to get into more of it. This is reflected in the ongoing obsession with credit score ranking. 45% of respondents say a high credit score is more desirable, for example, than a fully paid off car.
I’ve written before about how unhelpful it can be to be obsessed with your credit score, and a paid off car is — quite literally — like money in the bank. Continuing to drive a car you’ve paid off can result in a big reduction in monthly expenditure and a much more manageable monthly budget. The fact that a high credit score is seen as more desirable by many, however, is perhaps indicative of how much people believe they’ll need to rely on credit throughout their lives.
Another area many might want to re-assess is their judgement of others based on external factors. 42% of respondents — and 63% of Gen Z — said they admire those around them based on their possessions, specifically expensive homes, cars and clothes: a potentially unhealthy admiration that encourages overspending, often on credit, and lifestyle inflation, with too many people aiming for the most expensive home and car their credit will stretch to.
One final important issue that many have their priorities wrong on is seeking professional financial advice. Only 39% stated that financial advice is designed for them. While different people on different incomes need different types of advice, there’s no doubt that almost anyone can benefit from seeking professional help of some sort to improve their finances.
Ultimately, while many concerns are very real and need addressing, there are other worries that need to be put aside. If you get the chance to pay off your car and keep it, significantly reducing monthly outgoings, take it. And if you can make a purchase that quietly improves your life and supports your goals — even though it does nothing to impress the random onlookers — you should probably take that too.
Frequently Asked Questions
Is a high credit score more important than a paid-off car?
They serve different purposes, so one is not automatically more important than the other. A strong credit score lowers your borrowing costs when you do need credit, while a paid-off car frees up the monthly payment for saving, investing, or paying down other debt. Keeping a reliable car for years after the loan ends is one of the simplest ways to improve cash flow, and paying your bills on time protects your credit score along the way.
Will Social Security still be there when I retire?
Social Security is not expected to disappear, but it does face a funding shortfall. The 2026 Social Security Trustees Report projects that the combined retirement and disability trust funds will be depleted in 2034, after which ongoing payroll tax income would still cover about 83 percent of scheduled benefits. Congress can change taxes or benefits before then, so it makes sense to plan for some uncertainty without assuming benefits will vanish.
How do I know if I have too much debt?
A common yardstick is your debt-to-income ratio, which compares your total monthly debt payments with your gross monthly income. Warning signs include using credit cards to cover everyday expenses, paying only the minimums, or not knowing what you owe in total. Listing every debt with its balance, interest rate, and minimum payment is the first step toward a realistic payoff plan.
Who can benefit from working with a financial advisor?
Financial advice is not only for the wealthy. People at many income levels work with advisors on budgeting, debt payoff, retirement planning, and major decisions like buying a home, and some advisors charge hourly or flat fees instead of requiring a minimum level of assets. You can find a financial advisor near you and compare services and fees before deciding.
About the author
Contributing Writer, Wealthtender
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine.
Karen provides copy editing and proofreading services, as well as content creation services, at her website KarenBanes.com.