Sticker shock at the checkout? You’re not alone. A staggering 76% of Americans are slashing spending in response to stubbornly high prices, according to Wells Fargo’s latest Money Study. That’s up from 67% last year, and the financial squeeze is hitting younger generations the hardest—82% of Gen Z adults and 79% of Millennials report cutting back. Even teens are tightening their wallets, with 60% saying they’re spending less.
As a result, many people are putting big life decisions on hold. More than half (55%) of Americans say they’re delaying major milestones, with vacations topping the list (74%), followed by home renovations (39%), relocating (30%), and buying a home (30%). Even education, marriage, and retirement are on pause for some.
Sticker shock is real
It’s not just gas and groceries—Americans are feeling gouged everywhere. A jaw-dropping 90% say prices are much higher than expected, whether it’s a simple night out, a concert ticket, or even a bottle of water.
“Spending is key to financial success,” says Michael Liersch, head of advice and planning at Wells Fargo. “It’s about adjusting goals and staying focused through financial ups and downs.”
Despite financial stress, 94% of Americans say they want to make money choices that align with their values, and 86% want to be more thoughtful about spending. But old habits die hard: 48% admit changing financial behaviours is tough, and 43% struggle to plan for the future.
Last year, only 24% of Americans sought more guidance on financial management. This year, it’s up to 36%, with even higher numbers among Gen Z adults (61%) and Millennials (46%).
Secret bank balances and social pressures
Americans claim they don’t judge others’ financial situations, but they definitely judge themselves. While 87% say wealth doesn’t affect friendships, more than half (56%) keep their own finances under wraps, often out of fear of judgment (32%) or unwanted handouts (30%).
Money envy is alive and well. Nearly half (47%) admit to being jealous of others’ wealth, 45% compare their finances to their peers, and over a third (37%) obsess about getting rich.
Liersch adds: “Americans appear comfortable with other people being authentic about their financial situation, which is encouraging to see. So now it’s time to look inwardly and overcome our own self-judgment. Let’s challenge ourselves with the following question: how can we lower focus on others and define financial success on our own terms? Resetting the frame of reference from others to our own personal benchmark may help us better spend time and energy on our best next step.”