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SimpleImages \/ Getty Images<\/p>\n
The New Year is just around the corner, and many Americans fear their financial situation will deteriorate. <\/p>\n
Almost half of Americans report having more financial stress now than they did at the start of 2025.<\/p>\n<\/li>\n
Rising everyday costs, low income, and job insecurity are the top reasons cited.<\/p>\n<\/li>\n
Consumer sentiment has fallen sharply over the past year, as unemployment has risen and inflation remains above the Fed’s target of 2%.<\/p>\n<\/li>\n<\/ul>\n
2025 was a year of change for the U.S. economy\u2014tariffs were imposed on goods<\/a> imported from around the world, the unemployment rate ticked upward, and AI companies bolstered stock market performance<\/a>.<\/p>\n For Americans, however, some of these changes were a source of stress.<\/p>\n A new survey by Allianz, a life insurance company, finds that 48% of Americans report being more stressed now than they were at the beginning of the year.<\/p>\n As you head into the New Year, consider doing a review of your finances this year: how much money did you earn and spend? If you spent more than you earned, find ways to cut costs and consider generating additional income, such as through a side hustle. If you’re worried about losing your job, try building up your emergency fund<\/a> with three to six months’ worth of expenses.<\/p>\n Among that group of Americans, some of the top reasons for being stressed about finances were the cost of everyday expenses (54%), low income (46%), high debt (35%), and a lack of job security (33%).<\/p>\n The most recent Consumer Sentiment Survey from the University of Michigan<\/a> also indicates that Americans are feeling worse about the economy now than they did a year ago.<\/p>\n In December 2025, the headline index was 52.9, down more than 28% from a year earlier.<\/p>\n “Despite some signs of improvement to close out the year, sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy,” said Joanne Hsu, Surveys of Consumers Director, in the release.<\/p>\n As of November 2025, the unemployment rate<\/a> was 4.6%, the highest since the end of the COVID-19 pandemic in September 2021.<\/p>\n And while inflation has eased since 2021, it still remains stubbornly high, above the Federal Reserve’s 2% goal<\/a>.<\/p>\n The November inflation report from the Bureau of Labor Statistics indicated that inflation had slowed to 2.7%, down from 3% in September. However, economists note that this reading could have been distorted<\/a> by the government shutdown, which affected the data collection practice.<\/p>\n