With the resumption of federal student loan collection efforts, many borrowers are facing financial pressure, sharp declines in credit scores, and limited options for repayment. Not only are budgets strained, but mental health is also suffering as fears of long-term indebtedness weigh heavily on borrowers. 

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma, among 2,065 U.S. adults ages 18 and older, among whom 648 have outstanding federal student loan debt (referenced throughout as federal borrowers), 58% say that their student loan debt is the biggest financial stressor that they face today. Many borrowers face a mountain of debt with more than 2 in 5 federal borrowers (44%) estimating they have more than $50,000 in outstanding federal student loan debt; roughly 1 in 6 (16%) estimate that their balance surpasses $100,000. 

The recent resumption of collection efforts on defaulted federal student loans is having expansive implications for delinquent borrowers – consequences that can have long-lasting effects on Americans’ ability to stay afloat financially, let alone make financial progress. 

The dire state of delinquencies and defaults 

According to the survey data, roughly a quarter of federal student loan borrowers say they are delinquent or in default on their student loans (24%), rising to 29% of millennial borrowers (ages 29 to 44) and 38% among federal borrowers with household incomes between $50K and $74.9K. 

Credit Karma platform data paints a similar picture – currently, 4.7 million Credit Karma members with federal student loan balances are delinquent on their loans or have had their loans closed with a charge-off. Many of these borrowers are more than 120 days late on their payments. 

The inability to pay down student loan debt could stem from stagnant incomes amid an elevated cost of living as 68% of federal borrowers who are delinquent or in default on their loans say their current income is not sufficient to cover both their living expenses and student loan payments. In some cases, dipping into savings isn’t even an option. Roughly a quarter of federal borrowers who are delinquent or in default on their student loans (23%) say they don’t have any money in savings. 

Missed payments tank credit scores and disrupt lives  

Among federal borrowers who are delinquent or in default on their student loans, nearly three quarters (72%) have seen their credit score decline as a result; 27% say they have experienced significant declines in their score. Of those who saw a decline, nearly 7 in 10 (69%) saw their scores drop by 50+ points, while 40% saw their scores decline by 100+ points. 

Here is a look at the breakdown of credit score impact among the 4.7 million Credit Karma members who are delinquent on their federal student loans, or have had their loans closed with a charge-off: 

Damaged credit can cause a lot of friction in people’s lives, but the consequences become painfully real when it starts affecting day-to-day life. More than half of federal student loan borrowers who are delinquent or in default on their loans (58%) say their student loan debt has affected their ability to rent an apartment or secure housing, a quarter (25%) say they’ve been threatened to have their wages or government benefits (i.e. social security) garnished because of unpaid student loan debt, and some have even been denied a job due to their student loan status (13%) or due to their credit (13%). 

Setbacks like these can greatly impact people’s ability to move their lives forward, depicted by the quarter of federal borrowers with outstanding debt who have delayed major life milestones (e.g. buying a home, getting married, starting a family) because of their student loan debt  (25%), rising to 30% of millennial borrowers. Perhaps even more grim is the lack of confidence in borrowers’ ability to come out on the other side. Three in 5 federal student loan borrowers (60%) are worried they will never be able to pay off their student loans, climbing to 73% of those who are delinquent or in default. Sadly, the financial burden is taking a toll on borrowers’ mental health with 67% of those who are delinquent or in default admitting it has caused them significant anxiety and/or depression. 

Adjustments are necessary to free up funds 

Most federal student loan borrowers (91%) are taking steps, or plan to take steps, to free up funds to make payments toward their student loans – some measures more extreme than others. Those steps include: 

“Millions of student loan borrowers are under tremendous financial strain as they balance rising living costs with their debt obligations,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Missing payments doesn’t just create short-term stress – it can have long-lasting effects on credit scores, limit access to future credit, and even impact housing or employment prospects. If you’re at risk of delinquency or default on your federal student loans, log in to your account at the Federal Student Aid website to review your loan status. Then, reach out to your loan servicer to explore options like consolidation or income-driven repayment plans. Taking action now can help protect your financial future and make repayment more manageable.”

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from May 29 – June 2, 2025 among 2,065 U.S. adults ages 18 and older, among whom 648 have outstanding federal student loan debt. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 4.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

Faced with rising costs, many Americans are reevaluating their spending habits and trying to cut back through a “no-buy” or “low-buy” lifestyle, while others are blowing money to cope with concerns about the economy. 

According to a new study by Intuit Credit Karma, 44% of Americans say they are currently taking part in, or considering taking part in a “low-buy” challenge in the coming months, and 42% say the same about a “no-buy” challenge. For the purpose of this study, a “low buy” challenge involves placing certain restrictions around your spending and a “no buy” challenge is committing to not shopping for anything except for items you need to replace.

Cutting Back, but still coming up short

The most commonly cited reason for participating in a no-buy or low-buy challenge is to build savings, with 41% of respondents indicating this as their primary motivation. Other leading reasons include paying down debt (37%) and affording the high cost of basic necessities (30%). However, despite these disciplined spending restraints, a higher cost of living is still eating into budgets and leaving little to no room for actual savings. When asked how much participants have managed to save through these no-buy and low-buy strategies, the most common response (shared by 25%) was that they haven’t saved anything at all, as their money continues to be absorbed by day-to-day necessities.

Resetting after TikTok, tariffs, and emotional spending

Gen Z is leading the charge when it comes to no-buy and low-buy challenges, with over half reporting they’re either participating in or considering a no-buy (53%) or low-buy (50%) approach. Top motivators are to build savings (42%) and pay down debt (26%), however, this could reflect an effort to course-correct some of their recent spending sprees. Gen Z is the most likely generation to admit to “doom spending” as a way to cope with economic stress (41%), and “panic buying” or stocking up on goods out of fear of price hikes or product shortages (42%). They’re also the generation most influenced by recent TikTok discourse, with 43% saying social media content related to tariffs has impacted their spending and prompted purchases on shopping apps like DHGate, or buying name-brand products from advertised wholesalers they saw in trending TikTok videos. 

“No-buy and low-buy challenges can be a helpful way to assess your spending habits and uncover just how much is going toward non-essentials,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “That said, the most effective budget is the one you can realistically stick to. As long as you’re consistently paying down debt, contributing to savings or an emergency fund, and only spending on non-essentials after covering the basics, you’re on the right track. A no-buy or low-buy challenge can also help curb emotionally-driven spending, but if you choose not to follow this approach, I recommend developing the habit of pausing to ask yourself thoughtful questions before making discretionary purchases. Consider whether the expense could disrupt your monthly budget, lead to debt, or force you to sacrifice essential needs, and if the purchase will genuinely add value to your life.”

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on May 13, 2025, to May 18, 2025, among 1,015 adults ages 18 and older.   

This summer, everyone’s after the same thing: a good time. But while some are ready to spend freely to make that happen, others are swapping pricey vacations, concerts, and fine dining for budget-friendly alternatives. 

According to a new study conducted by Intuit Credit Karma, about one-third of Americans (34%) expect to spend less on non-essentials this summer, compared to previous years, primarily due to the rising cost of living (70%), economic uncertainty (46%), and concerns over tariffs (36%). While 44% expect their summer to be less enjoyable due to financial constraints, most (62%) still see summer as a time to have fun and indulge – especially Gen Z. In fact, 37% of Gen Z expect to spend more this summer on non-essentials, including dining out, travel, and entertainment, than they have in previous summers. They’re of the mindset that summer fun comes first, with 32% of Gen Z admitting they plan to prioritize their finances after summer is behind them. 

Americans are split on how they approach summer spending 

Whether planning to spend big or keep things low-cost, nearly half of Americans (46%) say they’re already feeling anxious about affording their summer plans, driving 65% to opt for more budget-friendly activities this summer. 

However, younger crowds aren’t as willing to cut back this sunny season as 58% of millennials and 48% of Gen Z plan to prioritize experiences over saving money this summer, pointing to travel and vacations (65% of millennials, 52% of Gen Z) and dining out (70% of Gen Z, 58% of millennials) as expenses they plan to spend more on this year than in previous summers. 

For nearly half of Gen Z, their YOLO mindset toward summer spending skews a bit grim. Roughly half (49%) claim that planning for the future feels pointless, so they’d rather spend their money freely this summer. 

Travel looks different this summer 

Among those planning to spend less on non-essentials this summer, vacations are one of the first luxuries to be cut, as 58% are scaling back on travel. In fact, 52% of Americans are traveling less than in previous summers, and 43% are skipping vacations altogether due to financial stress. To get their travel fix, 56% are choosing more affordable options like camping, visiting national parks, or taking staycations instead, a trend especially common among millennials (63%). Others are limiting travel to events they’ve already committed to, such as weddings or music festivals, with Gen Z and millennials leading this approach at 53% and 56%, respectively. Yet, cutting out travel goes against the grain for many Gen Zers, as 46% note travel as a non-negotiable for them this summer, even if they have to cut other expenses. 

Americans rely on BNPL to fund their summer plans 

While one-third (33%) of Americans plan to swipe their credit cards to pay for their summer plans, more than a quarter (27%) have used, or plan to use a payment plan or a “buy now, pay later” service in order to afford a summer purchase, activity, or event, rising to 45% of Gen Z and 38% of millennials. In fact, many Americans depend on the service to fund their fun, and in some cases, their essential expenses too. While 68% of those who have used or plan to use a BNPL service for a summer purchase say they wouldn’t be able to afford certain events and activities this summer without it, 30% use BNPL to pay for their necessities, such as groceries. It’s no surprise that nearly three-quarters (72%) of BNPL users say they are more reliant on BNPL services than they have been in the past. 

Buy now, pay later services help Americans afford certain expenses they’d otherwise be unable to afford, but in some cases, they can also encourage risky spending behaviors. A large majority of Gen Z BNPL users (77%) say that BNPL has encouraged them to spend more than they can afford, with 38% of Gen Z saying they owe or expect to owe anywhere from upwards of $500 to $2,000 in BNPL purchases from this year. 

Zooming out, debt is in the cards for 22% of Americans this summer, and 32% of Gen Z. More than one-third (42%) of Americans who expect to take on debt say that number could range anywhere north of $1,000 to $4,000, which is also the case for 40% of Gen Z. 

“The pressure to make the most of summer can often lead to justifying overspending, even if it’s not in your best interest long-term,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “The best approach is to make plans that bring you joy, but only if they won’t add financial stress. If you’re going to spend the whole experience worrying about how to pay for it, it’s likely not worth it. Take time now to review your financial situation and decide what’s within your means. Advanced planning is the best way to make sure you stick to a budget while still filling the calendar with fun summer activities that won’t cause financial regret.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on May 13, 2025, to May 18, 2025, among 1,015 adults ages 18 and older.  

Young Americans are feeling anxious about their place in an uncertain job market, as recession fears continue to climb. With graduation season ushering in a new wave of Gen Z adults into the workforce, many will enter a job market that feels anything but welcoming.

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma, among 2,074 U.S. adults ages 18 and older, 41% of Americans are expecting to see an increase in layoffs across the US in the next six months, at a time when 20% of Gen Z and 18% of millennials (ages 29-44) don’t think the job market could get any worse than it already is.

Concerns about the economy are real for 66% of Americans who report being fearful of an upcoming recession, and young adults are stressing about how a potential recession might impact their livelihood – more specifically, their job security. Losing their jobs or having their hours reduced are concerns held by 28% of millennials and 27% of Gen Z. Additionally, 22% of Gen Z are worried about their inability to find a job after graduating. 

Employed right now or not, the future feels uncertain for young professionals. More than a quarter of working Gen Zers (28%) report having little to no confidence in their ability to find a new job if they were to be laid off in today’s market. As for those currently on the hunt, a little over a quarter of Gen Z (26%) say they are losing hope in finding a job, or finding a different job,  after endless interviews and applications. 

Anxieties around job security may be even more heightened for those carrying student loan debt. Roughly a quarter of Gen Z (23%) and millennials (24%) are concerned about taking on unmanageable debt due to a potential recession. While the study doesn’t specify which types of debt young Americans are concerned about, Credit Karma platform data shows that millions of federal student loan borrowers are struggling to keep up with their debt. Of the roughly 24 million Credit Karma members with federal student loans, 4.6 million are delinquent or have had their loans closed with a charge-off.

“Starting out in the workforce is already intimidating, and layering on economic instability can easily lead to feelings of stress and discouragement,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “While navigating the job search, try to focus on taking small steps forward, like building your network, asking questions, and staying open to opportunities to learn and grow. If you’re also managing student loan debt, start by creating a repayment plan that targets the loan with the highest interest rate first, while continuing to make minimum payments on the rest. Federal borrowers can also visit the Federal Student Aid website, which offers a loan simulator to help choose a repayment option that fits your needs.”

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from April 7-9, 2025, among 2,074 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.

While it’s fair to say Americans are living through a cost-of-living crisis, some seem to be embracing a “life goes on” mentality when it comes to spending. It raises the question: have we started to adjust to a new economic normal – not by cutting back, but by redefining what we’re not willing to live without?

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma, among 2,074 U.S. adults ages 18 and older, 87% of Gen Z and 84% of millennials consider certain non-essential items and services to be “necessities” – things that they’re willing to spend money on, no matter the state of their finances. 

Willingness aside, most Americans do recognize that the state of the economy should be taken into consideration, with 83% saying that if their financial situation worsens in the coming months, they will strongly consider cutting back on their non-essential spending, including nearly three quarters of Gen Z (74%). However, other generations did express more willingness to cut back on their non-essential spending, including 82% of millennials, 86% of Gen X and 87% of boomers. 

So, what are some of the top non-essential items and services that Americans consider to be necessities these days? 

Willing to spend, but at what cost?

More than half of Gen Z (56%) and millennials (59%) say they view spending on their hobbies and interests as a necessity, not a luxury. And in many cases, they don’t seem all that concerned with the financial tradeoffs they may need to make as a result. Just over half of millennials (51%) and 45% of Gen Z say they would rather reduce long-term savings than give up certain lifestyle experiences, such as going out to eat, travel and fitness memberships. Much of the same sentiment is shared for taking on credit card debt – 46% of millennials and 44% of Gen Z are willing to take on credit card debt in order to maintain non-essential spending that is important to them. 

What’s influencing this perhaps careless spending philosophy among certain young Americans? For 60% of millennials and 53% of Gen Z who consider certain non-essential items and services to be necessities, it’s social media that has influenced them to consider certain non-essential items and services as necessities. Another reason some Gen Z might feel more comfortable prioritizing certain non-essential spending could be because they have some form of a financial safety net. In the same study, more than one-in-five Gen Z (22%) say they have not taken any steps or done more to prepare their finances for a potential recession because they have a financial security blanket, for instance, parents who will financially support them.

“It’s not entirely surprising that young people today are choosing to find comfort in spending on the things they enjoy, even amid economic uncertainty,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “The cost of living has been high for a few years now and it’s possible people have already acclimated their budgets to reflect that. However, I highly recommend auditing your finances now to make sure you can sustain yourself if an unexpected expense or income change were to shake things up. Doing so may not require any major lifestyle changes, but something as simple as setting aside $20 a week in an emergency savings fund. It’s not about cutting out everything that brings you joy, but more about creating a financial cushion. Even the smallest steps could mean less stress and fewer tough choices in the near future.” 

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from April 7-9, 2025, among 2,074 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.

While many couples are saying ‘I do’ in ways that reduce spending on their end, the cost of being a wedding guest has never been higher. Trends like micro-weddings, destination ceremonies, and multi-day events are pushing attendees to spend beyond their means, turning the celebration of love into a financial burden. 

According to a new study of Gen Z and millennial Americans that have attended a wedding in the past year or plan to in the next year, conducted by Intuit Credit Karma, 56% say they feel obligated to attend weddings and wedding-related events like bachelorette parties, even if they can’t afford to, and it shows. In the last year, 38% have taken on debt to attend weddings, and 39% have sacrificed paying for necessities like groceries and bills just to be in attendance for their friends’ and family’s big days. 

The price of your RSVP 

The financial strain of another wedding season is already setting in, as a quarter (25%) of those who plan to attend a wedding in the next year expect to spend between $1,000 and $3,000 per wedding. Further, among those who have taken on or expect to take on debt to attend weddings, nearly half (48%) estimate it will total between $1,000 to $4,000+. 

However, consumers are getting creative with how they fund their wedding commitments. While most relied on credit in the last year (44%) and/or dipped into their savings (42%), others took more drastic measures like using a buy now pay later service (20%), borrowing money from a friend or family member (20%), opening a new rewards credit card (19%), and/or taking on a new job (16%).

But the non-stop knot-tying isn’t just draining wallets, it’s costing time. More than one in five (22%) have had to take four or more days off of work per wedding, and 32% are unable to take a vacation this year because of money and time spent attending weddings and related events. 

The micro-wedding is all the rage, but not for everyone

When it comes to trends taking over the wedding industry, the micro-wedding, otherwise known as a small, intimate ceremony with 50 guests or less, is having its moment. In fact, 67% of respondents have noticed a rise in micro-weddings, and 68% have either attended one in the past year or plan to in the next.

While the trend is seen as a cost-saving move for brides and grooms, that doesn’t necessarily extend to guests. More than half (57%) believe that the trend saves the wedding couple money, but not guests, as 54% have actually spent more money to attend these small gatherings than they have on traditional weddings. With limited guest lists often made up of close friends and family, half (50%) of guests report feeling pressured to spend more on gifts.

Among those who have hosted or know someone who has hosted a micro-wedding, 56% say the motivation was to save money, in addition to being able to afford a nice honeymoon (36%) and/or to pay for another large purchase like a downpayment on a house (32%). Other reasons to opt for a micro-wedding include the general trendiness (26%), the ability to have a destination wedding (25%), and to avoid having to invite certain friends and family members (24%). 

Destination Debt 

Destination weddings are also a growing trend among nearlyweds, with 60% of wedding guests saying they’ve noticed more couples hosting these long-distance nuptials, and 71% have either gone to a destination wedding in the last year or plan to in the next. 

While 48% are willing to go into debt to attend a destination wedding, 57% have had to decline because the travel and lodging costs were too expensive. However, that isn’t a fair excuse to some, as 42% have lost a friend because they couldn’t afford to attend their destination wedding.

Traveling for destination weddings has led 57% to spend more than they have on personal trips, and 61% have or will sacrifice taking vacation time from work to attend destination weddings.

Despite many shelling out money for international vows, a majority (56%) believe that couples who host a destination wedding should not expect gifts from guests. However, for couples that opt for a honeymoon fund rather than a registry, some (12%) wouldn’t contribute because they feel it’s tacky (31%) or prefer to give a physical gift (31%).

Questioning the financial toll

As multi-day, overseas celebrations become more common, many guests are not on board. In fact, 46% believe that expecting guests to attend multiple wedding-related events is selfish, and 58% believe destination weddings are an unfair financial ask for guests. 

Additionally, the wedding party isn’t thrilled about footing the bill for every single expense on bachelor or bachelorette getaways. 48% believe the bride or groom should cover at least some of the costs, like travel and lodging, but not necessarily food and drinks. Meanwhile, 32% think the bride or groom should cover all their expenses throughout the fake veil, matching t-shirts and pink cowgirl hat chaos. 

Even those already married are having some financial regrets as they reflect on their own wedding. Some wish they would have done a smaller micro-wedding (27%) or spent that money on something else like a honeymoon or down payment (31%). 

“It’s an unfortunate reality that many consumers feel pressured to take on debt just to attend a wedding in fear that saying no might disappoint a friend or damage the relationship,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “With the cost of living rising and many tightening their budgets as is, it’s important that guests and wedding couples alike approach these situations with empathy and awareness of each other’s financial constraints. I encourage people to be realistic about what they can and cannot afford this summer and make compromises that work for you, like skipping the bachelorette party so you can afford to attend the wedding itself.”

Methodology: 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on April 4, 2025 to April 11, 2025 among 1,106 adults aged 18-44 who have attended a wedding in the past year or are planning to attend one in the next year.

Recession warnings plague the news cycle as tariff uncertainty rattles the economy, and Americans are feeling a range of emotions. 

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma, among 2,074 U.S. adults ages 18 and older, a vast majority of Americans (93%) have heard of warnings or discussions of a potential recession in the past three years, and 44% say it’s a topic they’ve heard about often or very often. More than half of Americans (57%) believe that news reports of a potential recession are a fair reflection of the current economic situation, while roughly one-in-five (22%) think they are overblown and exaggerated. 

Regardless of how people perceive recent economic news cycles, a little more than half of Americans (53%) say they are experiencing “recession fatigue” – whether they’re growing tired of hearing about a potential recession or becoming desensitized to warnings of one – a phenomenon felt by 59% of millennials. And, with most news cycles these days, roughly half of Americans (51%) say their anxiety around a potential recession has increased because of the amount of time they spend online, which is the case for 61% of millennials and 59% of Gen Z. 

Many Americans associate tariffs with the likelihood of a recession – 67% believe that tariffs are what will spike a recession in the U.S., and 58% mostly base the likelihood of a recession on the stock market’s performance. 

Affording necessities tops the list of recession concerns 

While most Americans are well aware of recession warnings, 66% say they are actually fearful of one, including 72% of millennials. On the other hand, roughly one-third (34%) of Americans are not fearful, highlighting a potential divide in how folks are emotionally responding to the possibility of a recession. 

When thinking of a potential recession, Americans’ number one worry comes down to not having enough money to afford necessities, such as food, rent and bills (42%). Other recession concerns include having to empty their savings (33%), not being able to afford important expenses like medical bills and education costs (31%), not being able to bounce back financially after a recession (29%), and a stock market downturn (28%). 

Certain recession concerns are heightened among younger Americans when it comes to potential losses. 30% of millennials and 28% of Gen Z are worried about losing their living situation, and 28% of millennials and 27% of Gen Z fear they will lose their jobs or have their hours cut. In a similar vein, roughly one in five (22%) of Gen Z are worried about their inability to find a job after graduating.  

Recession fears drive financial preparedness

A majority of Americans (82%) have taken at least some steps to prepare their finances in anticipation of a potential recession, including 89% of Gen Z and 88% of millennials. The number one thing people are doing in preparation is cutting back on non-essential spending (47%), although Gen Zers are less inclined to do so compared to some other generations (36%) compared to 45% of millennials and 51% each of Gen X ages 45-60 and boomers ages 61-79. 

Proactive steps Americans are taking to prepare for the potential financial impact occasionally vary by generation. For instance, 29% of Gen Zers are finding additional sources of income, compared to just 10% of boomers, and roughly one in seven millennials (14%) are cutting back on retirement contributions compared to7% each of Gen Z and Gen X, and 4% of boomers. 

Other ways people altered their financial behaviors include having limited their credit card usage (34%), making sure they have ample cash on hand – whether at home or in liquid assets that can be converted to cash (32%), building up an emergency fund (29%), paying down debt (28%), putting big purchases or milestones on hold (e.g. buying a home/car, having a wedding (28%)), diversifying investments (15%), and pulling out of or pausing stock investments (11%). 

A recession won’t rain on my fun parade

Safeguarding for a recession isn’t top of mind for everyone, and for various reasons. In one camp, 28% of Americans who have not taken any steps to prepare say its because they don’t have the ability to make changes to their finances – e.g. they’re barely able to make ends meet as it is – climbing to 46% of Americans with less than $50K in household income. For low-income households, the inability to alter their spending habits is further exemplified by their inability to save money. In fact, 30% of Americans with less than $50K in household income report not having any emergency savings. 

Perhaps some Americans haven’t taken any steps to prepare their finances for a recession because they’ve already done so in the recent past. In fact, 27% who haven’t taken steps to prepare their finances say it’s because it already feels like they are living through a recession. On the opposite end of the spectrum, 21% aren’t taking any steps because they simply don’t think a recession is looming. 

However, for Gen Z, their decision not to prepare their finances for a potential recession is less rooted in finances and more so in wanting to make the most of their youth. More than one in five (22%) of Gen Z Americans say they have not taken any steps or done more to prepare their finances for a potential recession because they are tired of the cost-of-living crisis infringing on their ability to have fun. And, roughly one in six (17%) say they haven’t because, if a recession is imminent, they’d rather live their best lives now. 

Not to mention that in some cases being young means facing less financial pressures. About one in five Gen Zers (22%) haven’t taken any steps or done more to prepare their finances for a potential recession because they have a financial security blanket, such as parents who will financially support them. Given that 21% of Gen Z Americans do not have emergency savings, having a financial security blanket is likely imperative for their ability to survive a potential economic downturn. 

“It’s understandable that Americans have torn feelings about what to make of a potential recession, especially given how overwhelming the news cycle has been regarding major economic impactors like tariffs,” said Courtney Alev, consumer financial advocate Intuit Credit Karma. “Regardless of how people feel about recession warnings, we know many Americans are taking proactive steps to prepare their finances, whether that’s cutting back on non-essential spending or limiting their credit card usage. It’s never a bad time to build a financial safety net, and I encourage those who haven’t yet taken any proactive measures to do so. It’s good practice to audit your current financial situation, identify any spending behaviors you may want to change and create a realistic budget that you can stick to over time that will hopefully allow you to contribute to an emergency savings fund.”

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from April 7-9, 2025, among 2,074 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

This year, tax refunds have served as a lifeline for many Americans who are dependent on this windfall to make ends meet. While some people think of their tax refund as “free money,” today’s cost of living has made it so many have less of a choice in how they use those funds. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 61% of Americans surveyed have filed their taxes, and 47% have received their tax refund. In fact, a majority of people who received their refunds already, used a service or product to access their refund early (64%), including nearly three quarters (72%) of millennials. 

For older Americans, their motivation to get their refund early doesn’t go that deep – 64% of boomers+ admit they just wanted their refund early. However, younger Americans may have had less of a choice. More than one-third (37%) of millennials say they needed their refund early to buy essential items like groceries, and 30% of millennials and Gen X needed to pay important bills. More than a quarter (28%) of Gen Z needed their refund to pay for expenses they’ve been delaying, such as a car repair, and a quarter (25%) of Gen Z and millennials needed to pay down high-interest debt. 

Of the 82% of taxpayers who have used some or all of their refund, usage behaviors match those who accessed their refund early. As expected, 41% of Americans who have spent their tax refund, used it to pay for necessities, while others used it to pay down debt (35%) and put it into a savings account (25%). 

While half of Americans (49%) are even more dependent on their refund to make ends meet this year than in years past, nearly one-third (31%) view their refund as “free money,” and their spending habits likely mirror the portion of Americans who said they used their refund to pay for travel (16%), non-essentials (14%) and experiences, like concerts or sporting events (12%). 

Regardless of how people chose to spend their refund, many were underwhelmed with the amount they pocketed. Two in five (40%) taxpayers who received a refund were disappointed by the size, including half (50%) of Gen Z, and 46% of people say their tax refund was lower than last year’s. 

Those who owe face sticker shock 

Among tax filers who are not expecting a refund this year, 59% owe the IRS, which likely came as a shock to the 30% who did not expect to owe money this tax season. Likely to their chagrin, 54% owe more this year than they did last year. Luckily, half (51%) of those who owe money will pull from their checking account to pay their bill, but nearly a quarter (23%) will need to dip into their savings. 

While more than three quarters (76%) of taxpayers don’t expect to take on debt to pay their tax bill, one in five (20%) do. Gen X is especially likely to take on debt to pay their bill (41%), as well as 35% of those with less than $50K in household income and 25% of Gen Z. 

Millennials aren’t immune to tax scams 

Potential tax scams are top of mind for many Americans, including the 40% who admit they are worried about being victims of tax fraud and scams. These concerns have people taking proactive measures to avoid such a fate, including roughly half (52%) of filers who say they always file early to avoid tax fraud and scams, while 62% say they’ve taken steps to protect themselves. Some of these steps include keeping tax documents secure (67%), not clicking on links from unknown senders (64%), never sharing personal information over the phone/email (63%) or on social media (61%), using secure website and Wi-Fi networks (52%), updating software (48%) and researching common scams (32%). 

Millennials seem to be the unlucky ones when it comes to tax scams, with roughly one in seven (15%) admitting they’ve been a victim of tax fraud/scams in the last few years, which resulted in serious consequences, including identity theft (41%), legal proceedings (36%) and financial losses (36%), to name a few. For one in five (20%) millennials, financial losses exceeded $5,000. 

“The many Americans not only choosing to receive their tax refunds early this year, but also using them for essentials, bills, and debt repayment is proof that people are feeling financially burdened, and struggling to keep up with the rising cost of living,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Even if it’s forced by current economic circumstances, it also reflects responsible money management, as people are prioritizing needs over wants. A tax refund is a great opportunity to improve your financial health, so for those still awaiting their refund, I suggest allocating no more than 10-20% for enjoyment and putting the remainder toward things like paying down debt or building an emergency fund.”

Methodology: 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on March 10, 2025 to March 12, 2025 among 1,003 adults ages 18 and older. 

Weekly grocery hauls cost a lot more than they used to, and it’s dramatically impacting Americans, from resorting to unhealthy options and skipped meals to general financial strain. Whether it’s feeding a family of six or dinner for one, the rising cost of essentials is not only changing the way consumers shop and budget, but how they feel and live their daily lives. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, 82% of Americans are concerned about inflation’s impact on daily necessities. In fact, 77% of people say they have felt the most significant increase in grocery costs, followed by utility bills (39%) and gasoline (37%).

Essential items are also eating up a large portion of people’s budgets, and fast, with 30% reporting they spend more than 60% of their monthly income on bills, groceries, and housing, rising to 40% of those with household incomes (HHI) of less than $50K. To cope with persistent inflation, 58% of Americans have had to cut back on non-essential spending like dining out or shopping, and many have taken more drastic measures, like accumulating debt (26%), depleting their savings (24%), and neglecting medical care (17%). 

Sadly, as many as 30% are unable to replenish their depleted savings, noting they are unable to put any of their monthly income toward savings. 

Grocery costs take a physical and emotional toll on consumers 

The rising cost of groceries has forced many Americans to make difficult, and potentially harmful, financial and lifestyle adjustments. One in five (20%) say they are buying more unhealthy food for themselves and their families because it’s the cheaper option, 25% admit to occasionally skipping meals, a habit even more common among Gen Z (32%), and 21% have had to sacrifice other necessities to afford their groceries.

To soften the blow, many people are getting thrifty, they’re buying generic or store-brand products (56%), shopping at discount stores like Dollar Tree or Dollar General (35%), or prioritizing shopping at retailers that offer promotions (22%). 

This financial strain has even led to emotional distress for some, with 19% of people admitting they feel ashamed about their inability to afford groceries.  

Yearning for yesteryear 

Three-quarters of Americans (76%) say that their money doesn’t go as far as it did three years ago, and nearly a third (31%) say they’d need an additional $1,500 to $2,000+ per month to afford the same standard of living from three years ago. This feeling of needing more to survive is especially pronounced among Gen Z and millennials, 23% and 24% of whom respectively say they’d need $2,000 or more each month to maintain the same standard of living they once had. 

Government and community lifelines help some, but not all

Many Americans find themselves in a financial pickle amid today’s cost of living, with half (50%) claiming they earn too much money to qualify for government assistance but not enough to comfortably afford necessities like groceries. That’s not to say people aren’t turning to government and community resources for help. About one in six (17%) Americans have applied, or considered applying for food stamps, while others are relying on food banks (16%). 

Americans brace for a new normal; Gen Z remains resistant

Despite the financial burden many are facing today, there are signs that Americans are starting to adjust to the new normal. As many as 64% say they’ve accepted that higher prices for essential items are likely here to stay. However, Gen Z is not as willing to make the necessary adjustments to their budget. While a healthy 48% of Gen Zers are limiting or halting non-essential spending, it doesn’t compare to the same willingness among millennials (55%), Gen X (73%) and boomers  (77%). 

“The rising cost of essentials, particularly groceries, is putting immense financial pressure on American households across various income levels, forcing people to make difficult tradeoffs that may be suboptimal for their health,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Everyone should feel empowered to tap into all resources available to them, and if you’re looking for ways to save on groceries, I recommend shopping with a list to avoid impulse purchases, choosing in-season produce for better prices, and meal planning around your local store’s sales and promotions.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025, to March 11, 2025, among 2,074 adults ages 18 and older.   

The flurry of tariff announcements that have taken place these past few months have Americans on notice, with many adjusting their wallets as a result. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, roughly three quarters of Americans (73%) say they are aware of the imposed and pledged tariffs on imports from China, Canada and Mexico, and a majority of them (82%) believe these tariffs will impact the prices of everyday goods. 

Consumer anticipation of further cost shifts come at a time when 82% of Americans are concerned about inflation and its impact on pricing for essential items like food, housing and gasoline. As prices for essential items increase / remain elevated, many Americans are dependent on credit, especially young people – 45% of Gen Z and 46% of millennials say they rely on credit cards. 

Spending behaviors vary in the wake of tariffs

A majority of Americans (87%) assume tariffs will increase prices – whether it be price hikes on some goods (47%) or on all goods (40%). Regardless of their expected reach, half of Americans (51%) have changed their spending habits in anticipation of tariffs, especially Gen Z (67%) and millennials (61%). 

In terms of how Americans are preparing for tariffs, their spending behaviors run the gamut. Many are cutting back on non-essential purchases to save money (62%), while others are getting thrifty by looking for cheaper alternatives, like store brands or secondhand items (55%). 

On one end of the spectrum, people aren’t waiting out the impact, but instead are choosing to stock up on certain goods now in case prices go up (43%), buying more domestically made products (29%), and even making major purchases (i.e. car, appliances) now to get ahead of potential tariff impacts (18%). On the other end, consumers are taking the “wait and see” approach, with 37% delaying major purchases until they understand the impact of tariffs. 

According to consumers, no item will be spared 

When asked which everyday goods consumers expect to be more costly as a result of tariffs, a whopping 84% expect groceries and food items to be hit the hardest, followed by electronics and appliances (69%), vehicles and auto parts (69%), gasoline and energy costs (66%), clothing and apparel (64%), household essentials, such as cleaning supplies (54%), furniture and home goods (49%) and children’s toys (39%). 

Not everyone is fazed by tariffs – sometimes out of necessity 

Tariffs have Americans split down the middle when it comes to spending adjustments, with nearly half of Americans (49%) saying they have not changed their spending habits in anticipation of tariffs. However, reasoning is nuanced, especially when broken down by Americans’ income status. 

The main reasons people aren’t adjusting their spending include the unwillingness to change their spending unless they see prices actually shift (42%), and having other priorities to focus on right now (39%). The latter applies to about half (51%) of Americans with less than $50K in household income (HHI), compared to 29% of those with a HHI of $100K+. This likely reflects the reality of those who deal with more financial instability, and don’t have the flexibility to cut back when they’re perhaps barely making ends meet. This is further supported by the fact that 52% of Americans with a HHI under $50K do not feel financially stable right now, compared to only 16% of those earning $100K or more.

“While tariffs are a complex concept, more than three quarters (77%) of Americans say they know what a tariff is — likely because they’ve been a major focus in recent economic discourse,” said Courtney Alev, consumer financial advocate at Credit Karma. Imposed and pledged tariffs come at a time when consumers are grappling with an elevated cost of living, so we’re seeing many people take precautions to protect their finances in anticipation of potential price increases for certain consumer goods. For those who are concerned about their finances right now, focus on what you can control. Cut back spending where you can, contribute to an emergency savings fund, and if you’re able to, pay down any debt you may have — starting with your highest interest debt first.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025 to March 11, 2025 among 2,074 adults ages 18 and older.   

When TikTok exploded in popularity during the pandemic, many Americans started posting and consuming content around choreographed dances, baking bread and “get ready with me” videos. But over time, social media platforms like TikTok, Instagram and YouTube have become go-to destinations young people turn to for information about more serious topics like mental health, foreign affairs and financial advice. 

According to a recent study conducted by Qualtrics on behalf of Intuit Credit Karma, 77% of Gen Z and 61% of millennials actively seek financial advice or information online or through social media platforms, with a majority of Gen Z seeking this information on YouTube (71%), Instagram (50%) and TikTok (49%). And, millennials mainly seek this kind of information and advice on YouTube (67%), Facebook (61%) and Instagram (43%). 

Here is a breakdown of the top online platforms Gen Z and millennials turn to for information and financial advice: 

*Among respondents who actively seek financial advice online/from social media 

We know where they’re turning, but what type of personal finance advice are young people seeking online? Here’s a look at the topics Gen Z and millennials have sought out advice for on social media or online: 

*Among respondents who actively seek financial advice online/from social media 

FinTok drives a mixed bag of experiences 

It’s one thing to ingest financial advice on social media, but the stakes become much higher when taking action on said information. According to the study, 60% of Gen Z and 54% of millennials have acted on financial advice they received online or on social media, and interestingly, men tend to be more trusting than women. Nearly half (48%) of American men have acted on financial advice they got online or on social media, compared to 29% of women. 

For many young people, doing so has served them well. In fact, 67% of Gen Z and 60% of millennials say they’ve improved their financial situations after taking financial advice they received online or on social media, and similarly, 64% of Gen Z and 63% of millennials say that the financial advice they received from an influencer on social media made a positive impact on their lives. It’s possible that those who have struck luck participating in the FinTok movement are also doing their due diligence. Roughly three-quarters of Gen Z (72%) and millennials (74%) say that they research and validate financial advice they receive on social media or online before taking any action. 

However, the FinTok movement hasn’t treated everyone equally. For 39% of Gen Z and one-third (33%) of millennials – they say they will never take financial advice from social media or online ever again. Why so? Not only have 40% of Gen Z and 30% of millennials made poor financial decisions or mistakes based on information they received on social media or online, but a whopping 37% of Gen Z and a quarter (25%) of millennials admit they have gotten into trouble (i.e. IRS audit) after taking action on financial advice from social media or online. It’s no surprise then that 43% of Gen Z and one-third (33%) of millennials say doing so has negatively impacted their lives. 

Social media can be a hotbed for scams 

As scams become more prevalent and scammers become more sophisticated with their tactics, social media users could be easy targets. In fact, a quarter of Gen Z (25%) and roughly a quarter (23%) of millennials say they’ve been scammed by a bad actor portraying to offer financial advice or guidance on social media or online. And, among those who have been scammed, a majority of Gen Z (77%) and millennials (72%) say that it has negatively impacted their financial standing. 

Family, friends & financial institutions remain trusted sources 

No matter how trusting young people are of social media and the internet when it comes to their finances, many still prioritize their inner circles and financial institutions as their most trusted sources for financial advice. 

Here is a breakdown of those that young Americans trust the most when it comes to seeking out financial advice of information: 

“While social media platforms, and the internet at large, offer easy access to a ton of useful information people can adopt in their day-to-day lives, consumers should always do their research and verify the information they find online before taking action, especially when it comes to their finances,” said Courtney Alev, consumer financial advocate at Credit Karma. “As our study shows, there are a lot of bad actors and information out there that can end up causing a lot of harm to peoples’ financial lives, so it’s imperative that consumers do their due diligence. It’s also important to remember how personal “personal finance” is. No two people have the exact same financial profile or situation, so seeking out generic, one-size-fits-all financial advice online often isn’t going to be all that useful, generally speaking. In fact, almost half (45%) of respondents from our study admit that online financial advice is typically too generic or doesn’t apply to their unique financial situations. It’s important for consumers to keep that top of mind when consuming financial content online.”

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between September 30, 2024 and October 9, 2024 among 1,510 adults ages 18 and older. 

The rise of sports betting has made placing bets easier than ever, but the hidden cost of this convenience – both financial and emotional – is far reaching. Factor in major events like the Super Bowl and March Madness, and what starts as a friendly wager can quickly spiral into a dangerous cycle of gambling and debt. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among U.S. adults ages 18 and older who engage in sports betting, or have a partner who engages in sports betting, nearly a quarter (22%) say sports betting has caused financial hardship and emotional distress for themselves and their families. When asked just to partners of sports bettors, this increases to 27%, indicating that typically feel the toll more. 

The most common types of financial hardship this camp of people and their families face include depleted savings (26%), struggles to afford basic necessities (21%), missed or late payments on important bills (20%), decreased credit score (19%) and having to take out payday loans or cash advances (18%) and maxed out credit cards (18%). In many cases, these numbers increase when asked just to partners of sports bettors, and a whopping 23% of partners say they’ve had to pull from their child(ren)’s college fund. And, roughly one in six sports bettors (17%) say they are at risk of bankruptcy. 

The most common emotional stressors faced by sports bettors and partners of sports bettors include mental health issues (48%), erosion of trust (24%), alcoholism and drug use (20%), lack of a relationship with children (18%) and family estrangement (16%). Sadly, we found that roughly one in six partners of sports bettors (16%) deal with abuse, whether it be physical, verbal or emotional. 

For better or for worse? 

Partners of those who engage in sports betting are often left carrying the burden of their partner’s decisions. More than a quarter (29%) of partners of bettors say that their partner is addicted to sports betting, with 28% wishing sports betting was illegal so they could protect their finances. Partners of sports bettors have had to lose out on achieving key milestones in sacrifice of their partner’s vice. Those sacrifices include taking a vacation (28%), paying off debt (22%), achieving financial independence from parents/relatives (13%), being able to invest in the stock market (13%) and buying a home (13%). 

Their anxieties stretch far beyond their finances – 28% worry their children will be influenced by their partner to engage in sports betting. The sad reality is some partners are completely in the dark about their partner’s betting practices with more than one in five (22%) bettors admitting their partner and family aren’t even aware that they make sports bets, increasing to one-third (33%) of Gen Z bettors. 

It’s also clear that those who bet and those whose partners engage in sports betting do not see eye to eye when it comes to associated risks and opportunities. Unsurprisingly, partners of bettors are more risk averse with 21% saying sports betting is a huge financial risk, compared to 11% of bettors, and 31% of partners view it as throwing away money, compared to 12% of bettors. On the flip side, 40% of bettors see it as a way to make money, compared to 26% of partners and 24% of bettors see the opportunity to make a big sum of money, compared to 16% of partners. 

It’s no wonder partners of those who sports bet view betting as throwing away money, when you consider 10% estimate their partner spends anywhere from $3,000 to $10,000 each month on bets. It’s an even scarier situation for those with household incomes (HHI) less than $100K, 17% who estimate their partner spends this much per month on bets. 

Slippery slope: from hobby to addiction

Nearly a quarter (23%) of bettors admit to being addicted to sports betting, climbing to 37% of Gen Z bettors, and sadly 38% of those addicts have no plans to get help for their addiction. Why the unwillingness to seek help? For many betting addicts, it comes down to denial, excuses and desperation. More than one-third of bettors (35%) say they don’t plan to get help because they don’t think getting help is necessary, one-third (33%) view it as an opportunity to make money, roughly one in five (21%) say they plan to quit once they’re financially stable and roughly one in six (17%) believe they are one big win away from fixing everything. 

On a brighter note, half of sports betting addicts say they plan to get help for their addiction, whether that be through friends or family (41%), online resources or forums (35%), seeing a therapist or psychologist (34%), meeting with a financial advisor (24%) and in some cases checking in to a rehab facility (22%). However, the reasons for which they are seeking help are more grim. More than one-third of betting addicts (35%) are seeking help due to feelings of guilt and shame, followed by being at risk of losing their job / having already lost their job (30%), being at risk of losing their family (29%), grappling with stress-related health issues, such as stroke, high blood pressure or insomnia (29%) and the desire to live a more stable and healthy life (29%). 

What, when, why, how? 

What are sports bettors betting on these days? Football takes the lead (83%), followed by basketball (55%), major sporting events like the Super Bowl or March Madness (34%) and baseball (33%). However, these days, betting goes beyond sports. A quarter of bettors (25%) say they place bets on things other than sports, whether it be weather, politics or awards ceremonies. 

In most cases, bettors are engaging in sports betting weekly (35%), and in some cases daily (10%). To fund their gambling, sports bettors claim winnings from previous bets as their number one funding mechanism (39%), followed by dipping into savings (32%), using income from a side gig (24%) and swiping their credit cards (19%). 

What drives people to bet on sports? The number one reason is to make money (53%), followed closely by entertainment purposes (52%). Others say it enhances their sports-viewing experience (29%), and nearly a quarter (24%) are swayed by bonuses and incentives offered, whether it be in free bets or prizes for activity. 

“The explosion of online sports betting rakes in billions in revenue annually, in some cases, at the expense of peoples’ financial lives,” said Courtney Alev, consumer financial advocate at Credit Karma. “While it may be a harmless vice for many who engage in the act, others find themselves entangled in a dangerous cycle of gambling that could be financially catastrophic when succumbing to chasing losses or betting beyond their means. Not to mention that these losses often extend beyond just money: they can erode trust within families, lead to mounting debt, and destroy personal relationships. For those who find themselves in a precarious place as it relates to sports betting and gambling-related debt, the first step to recovery is acknowledging the issue and seeking help. Getting professional help is likely the best chance at taking control of unhealthy betting habits, and making a plan for how to get out of debt. Even if you don’t have a gambling problem, it’s good practice to set rules and guidelines for yourself to ensure you’re always in control of your spending.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between January 29, 2024 and February  5, 2024 among 1,000 adults ages 18 and older who engage in sports betting or have a partner who engages in sports betting.