Introduction to Financial Stress
The vast majority of U.S. adults are at least somewhat stressed about the cost of groceries, a new poll finds, as prices continue to rise and concerns about the impact of President Donald Trump’s tariffs remain widespread. About half of all Americans say the cost of groceries is a “major” source of stress in their life right now, while 33% say it’s a “minor” source of stress, according to the poll from The Associated Press-NORC Center for Public Affairs Research. Only 14% say it’s not a source of stress, underscoring the pervasive anxiety most Americans continue to feel about the cost of everyday essentials.
Financial Stressors
Other financial stressors — like the cost of housing or the amount of money in their bank accounts — are also broadly felt, but they weigh more heavily on younger Americans, who are less likely than older adults to have significant savings or own property. The survey also found that about four in 10 Americans under the age of 45 say they’ve used what are known as “buy now, pay later” services when spending on entertainment or restaurant meals or when paying for essentials like groceries or medical care.
Impact on Younger Americans
Adam Bush, 19, based in Portland, N.Y., is one of those younger Americans who has used pay-later services for things like groceries or entertainment. Bush works as a welder, fabricating parts for trucks for Toyota, and makes under $50,000 per year. “I just keep watching the prices go up, so I’m looking for the cheapest possible stuff,” he said. “Hot pockets and TV dinners.”
Economic Recession
An economic recession is defined as a significant and widespread decline in economic activity for multiple months. This concept is relevant as the cost of groceries and other essentials continues to rise, affecting the financial stability of many Americans.
Stress About Groceries
Groceries are one of the most far-reaching financial stressors, affecting the young and old alike, the poll finds. While Americans over age 60 are less likely than younger people to feel major financial anxiety about housing, their savings, child care, or credit card debt, they are just as worried about the cost of groceries. Esther Bland, 78, who lives in Buckley, Washington, said groceries are a “minor” source of stress — but only because her local food banks fill the gap.
Impact on Lower-Income Americans
According to the poll, 64% of the lowest-income Americans — those who have a household income of less than $30,000 a year — say the cost of groceries is a “major” stressor. That’s compared with about 4 in 10 Americans who have a household income of $100,000 or more. But even within that higher-income group, only about 2 in 10 say grocery costs aren’t a worry at all.
Economic Anxiety Among Specific Groups
Housing is another substantial source of worry for U.S. adults — along with their savings, their income, and the cost of health care. About half of U.S. adults say housing is a “major” source of stress, according to the poll, while about four in 10 say that about the amount of money they get paid, the amount of money they have saved, and the cost of health care. Women, for instance, are more likely than men to report high levels of stress about their income, savings, the cost of groceries, and the cost of health care.
Hispanic Adults and Financial Stress
Hispanic adults are also particularly concerned about housing costs and both credit card and student debt. About two-thirds of Hispanic adults say the cost of housing is a “major” source of stress, compared with about half of Black adults and about 4 in 10 white adults. Some people are making changes to their lifestyle as a result of high costs. Shandal LeSure, 43, who works as a receptionist for a rehabilitation hospital in Chattanooga, Tennessee, and makes between $85,000 and $100,000 a year, said she’s started shopping for groceries at less expensive stores.
Use of "Buy Now, Pay Later" Services
As they stretch limited budgets, about three in 10 U.S. adults overall say they’ve used “buy now, pay later” services such as Afterpay or Klarna to purchase groceries, entertainment, restaurant meals or meal delivery, or medical or dental care, according to the poll. Younger Americans are much likelier than older people to have used pay-later plans for entertainment, groceries, or restaurant meals, but there’s no age gap on medical care. Black and Hispanic people are also especially likely to adopt the plans.
Conclusion
The cost of groceries and other financial stressors are significant concerns for many Americans, with about half of all Americans saying the cost of groceries is a “major” source of stress. The use of "buy now, pay later" services is also on the rise, particularly among younger Americans and those with lower incomes. As the economy continues to evolve, it’s essential to address these financial stressors and provide support to those who need it most.
FAQs
Q: What is the primary source of financial stress for most Americans?
A: The cost of groceries is the primary source of financial stress for most Americans, with about half of all Americans saying it’s a “major” source of stress.
Q: Which age group is most likely to use "buy now, pay later" services?
A: Younger Americans, particularly those under the age of 45, are more likely to use "buy now, pay later" services.
Q: How do women and Hispanic adults differ in their financial stress levels compared to other groups?
A: Women are more likely to report high levels of stress about their income, savings, the cost of groceries, and the cost of health care, while Hispanic adults are particularly concerned about housing costs and both credit card and student debt.
Q: What percentage of lowest-income Americans say the cost of groceries is a "major" stressor?
A: 64% of the lowest-income Americans — those who have a household income of less than $30,000 a year — say the cost of groceries is a “major” stressor.
Q: What is the definition of an economic recession?
A: An economic recession is defined as a significant and widespread decline in economic activity for multiple months.
