Faced with sticky inflation and a job market that’s losing steam, many Americans are feeling rattled these days. And when it comes to the year ahead, 32% think their personal finances will worsen in 2026, Bankrate’s recent Financial Outlook Survey found — the highest level of pessimism since 2018, when Bankrate began asking consumers about their financial outlook. Last year, 23% thought their finances would worsen in 2025.
Inflation and the current political landscape are common drivers for people’s current negative outlook: Those who expect their personal finances to get worse next year frequently cited continued high inflation (78%) and work done by elected representatives (55%) as the reasons for their concern.
U.S. economic data validates these concerns. Although inflation has come down after peaking at 9.1% in June 2022, prices have climbed around 25% since 2020. And for many, inflation isn’t being offset by higher incomes, as the median household income last year wasn’t statistically different from that of 2019.
Bankrate’s key findings
Inflation fatigue is real, as Americans prepare to flip the calendar but cannot turn the page. A declining sense of economic optimism comes as the job market has cooled and inflation has remained persistent, with prices broadly still elevated.
— Mark Hamrick | Bankrate senior economic analyst
Americans are less likely to believe their finances will improve in 2026
While many survey respondents expect their finances to worsen in the coming year, the survey found that about one in three (34%) Americans felt their financial situation would improve next year, which is down from last year’s survey when 44% said they expected improvement. Another 34% said they felt their situation would stay the same next year.
Across generations, those who don’t expect their finances to get better next year include:
- 54% of Gen Z (ages 18-28)
- 60% of millennials (ages 29-44)
- 69% of Gen X (ages 45-60)
- 76% of baby boomers (ages 61-79)
Those who think their finances will improve include:
- 46% of Gen Z
- 40% of millennials
- 31% of Gen X
- 25% of baby boomers
* Due to rounding, figures might not total 100%.
The rise in pessimism this year was measured across party lines. The number of Republicans who said their personal finances would get better in the following year declined to 44% in the latest survey, down from 62% in a similar survey that ran the same time last year. Meanwhile, 37% of Democrats felt that their financial situation would worsen next year, up from 30% in last year’s poll.
Continued high inflation is a top worry
The Consumer Price Index (CPI), a common measure of inflation, has been creeping up in recent months and hit 3% in September — the highest level since the start of 2025. As a result, household budgets are stretched thinner with increasing prices on everything from groceries and apparel to furniture and car repairs.
A majority of those (78%) who thought their finances would worsen next year said they felt that way because of continued high inflation.
Other significant reasons include work done by elected representatives (55%), stagnant or reduced income (46%) and the amount of debt they have (25%).
Of those who think their financial situation will improve next year, nearly half (47%) say it’s thanks to rising income. That compares to 35% who cited this reason a year ago. Other top reasons why Americans think their finances will improve include better spending habits (40%), having less debt (37%) and making more money from savings or investments (30%).
Reducing debt remains a top financial goal for next year
The most common main financial goal cited by Americans for 2026 is paying down debt (19%), and that percentage tends to rise with age. By generation, that breaks down to:
- 9% of Gen Z
- 16% of millennials
- 24% of Gen X
- 25% of baby boomers
“That more senior Americans are most focused on attacking their debt levels shows how costly and pernicious debt can be, particularly the highest cost debt, which results from credit cards,” Hamrick says. “It is prudent to shed this debt where possible.”
Credit card annual percentage rates (APRs) currently average around 20%. And nearly half of credit cardholders (46%) are carrying a credit card balance, according to Bankrate’s Credit Card Debt Survey.
Getting a higher paying job or an additional source of income is the second most common main financial goal for Americans (14%), followed by saving more money for emergencies (13%) and budgeting spending better (12%).
One in 10 Americans (10%) have no financial goals for 2026, with baby boomers most likely to say they do not have them:
- Gen Z: 6%
- Millennials: 9%
- Gen X: 8%
- Baby boomers: 14%
Many plan to address their main financial goal right away
Of those who told Bankrate they have a main financial goal, 44% said it’s a New Year’s resolution they’ll address right away.
Meanwhile, nearly one-third (35%) said they’ll address their goal once they’ve had time to think and plan, while 12% said it’s a long-term issue they’ll address after doing research or seeking advice. Nearly 1 in 10 (9%) said they don’t know how they’ll address their main financial goal in the coming year.
Bottom line
Bankrate’s Financial Outlook Survey for the year 2026 shows the number of Americans who are pessimistic about their personal finances has risen to the highest level in at least the last eight years. Americans are feeling less optimistic about their finances, fueled by factors such as inflation and stagnant or reduced income.
Consumers’ worries aren’t unfounded, considering prices continue to rise while incomes don’t seem to keep pace. As household budgets become stretched increasingly thin, Americans are prioritizing goals of paying down debt, saving money for emergencies and finding additional sources of income.
“With so many Americans looking to find a better-paying job or other form of income boost, here’s hoping that the job market remains sufficiently resilient that their hopes will be realized,” Hamrick says. “The risk is that unemployment rises before it makes a meaningful move lower, which will translate to added financial pressure and stress for individuals and households.”
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