New Intuit Credit Karma data finds that rising costs are forcing Americans to make tough trade-offs this summer, but not everyone is willing to scale back.
Note: This study was conducted among Gen Z, Millennial and Gen X adults. Throughout this article, respondents are referred to as “Americans.”
Key takeaways:
- 55% of Americans say this is the most financially stressful summer they can remember, with two-thirds (66%) reporting that current economic conditions are making them more stressed about their finances than in previous summers.
- 45% say rising gas prices and airfare costs have led them to cancel their summer travel plans, with more than half (56%) saying they feel priced out of traveling this season entirely.
- 52% plan to take on extra work to afford the summer they want, rising to 59% of Gen Z and 57% of millennials.
- 31% expect to take on debt this summer, including 37% of Gen Z. More than a third (35%) expect to rack up anywhere from $1,000-$3,000 in debt.
- 47% of Gen Z say their summer travel plans are more expensive than they can realistically afford, but they don’t plan to scale them back.
According to a new study from Intuit Credit Karma, more than half of Americans (55%) say this is the most financially stressful summer they can remember, and two-thirds (66%) say current economic conditions are making them more stressed about their finances than in previous summers.
With high gas prices and grocery costs eating into everyday budgets and airfare costs squeezing travel plans, Americans are being forced into difficult trade-offs, whether that’s cutting back on essentials, taking on debt, or giving up on summer plans entirely. While many Americans are pulling back (particularly Gen X), others (especially Gen Z), are moving forward with their summer plans, even if it means racking up debt or hustling to make it work.
Americans enter summer with stretched budgets
More than a third of Americans (34%) say their financial situation has worsened over the past year, rising to 39% of Gen X. The state of the US economy is a shared concern among 89% of Americans, which bleeds into their top financial concerns as they head into summer:
- Cost of food and groceries – 45%, rising to 54% of Gen X
- Cost of gas – 40%, rising to 46% of Gen X
- Saving money – 28%, rising to 35% of Gen Z
Rising gas prices are a sticking point for many Americans’ summer plans. People report spending significantly more on gas per month compared to last year, with 25% spending $50 to $100 more per month and 16% spending $100 to $200 more.
That extra cost is forcing people to make spending trade-offs (spend less or give up entirely). As a result of rising gas prices, Americans are sacrificing:
- Groceries – 29%
- Entertainment (streaming services, concerts, sporting events, etc.) – 29%
- Name-brand products (e.g. choosing generic/store brands instead of premium brands) – 25%
- Visiting family/friends – 23%
- Road trips – 22%
- Family vacations – 22%
This strain is influencing how people feel about their financial runway. Six in 10 (61%) say they have less financial flexibility this summer than in recent years, and 69% are worried the economic situation could get worse before the summer is over.
A summer in the red
Nearly a third of Americans (31%) expect to take on debt this summer, rising to 37% of Gen Z. Among those who expect to take on debt, 35% anticipate adding anywhere from $1,000 to $3,000, including 41% of millennials and 40% of Gen X. Debt bills skyrocket for roughly one in eight Gen Xers (13%) who anticipate taking on more than $4,000 in debt.
Travel plans meet economic reality
Despite the financial stress, more than half of Americans (57%) still plan to travel this summer, especially Gen Z (63%). On the other hand, the desire to travel is being met with economic reality. Nearly half (45%) say rising gas prices and airfare costs have led them to cancel their summer travel plans, and more than half (56%) feel priced out of traveling this summer.
Those who are flying are getting creative to help manage the cost of airfare. Top strategies include:
- Charging airfare to a credit card – 28%
- Choosing budget airlines – 28%
- Booking earlier than usual – 28%
- Flying at off-peak times or days – 26%
- Using points/miles or travel rewards to offset the cost – 23%
- Choosing a destination based on cheaper airfare – 18%
Rising costs are also influencing where and how people travel:
- 25% are taking fewer trips
- 21% are choosing a destination(s) closer to home
- 20% are choosing a more affordable destination(s) (e.g. national parks)
- 18% are staying with friends and family
- 17% are shortening the length of their trips
- 15% are opting for staycations
- 14% are traveling with others to split costs
- 14% are switching from flying to driving to save on airfare
Gen X pulls back while Gen Z pushes forward
When it comes to summer spending, these two generations are heading in opposite directions. Four in 10 Americans (40%) expect to spend less this summer compared to last, rising to 44% of Gen X. Meanwhile, 27% of Americans expect to spend more, rising to 36% of Gen Z.
That divide shows up in where Americans expect to spend more this summer:
- Groceries – 66%, rising to 71% of Gen X
- Gas – 53%, rising to 58% of Gen X
- Travel – 31%
- Dining out – 31%, rising to 38% of Gen Z
- Entertainment (concerts, sporting events) – 25%, rising to 33% of Gen Z
To cover summer expenses, Americans are reaching for a mix of payment methods: checking accounts (40%), credit cards (39%), and savings (30%). Notably, credit card usage is highest among Gen Z (45%) and millennials (43%). While buy now, pay later (BNPL) is being used by 26% of Gen Z, underscoring how this generation continues to lean on alternative payment methods to manage cash flow.
Sacrifices and side hustles
Young Americans are hustling to make their summer costs work. In order to afford the summer they want, 59% of Gen Z and 57% of millennials are taking on extra work (e.g. gig work). And yet, even with the extra effort, 55% of Gen Z say that even though they budgeted for summer plans, it still doesn’t feel like enough.
Many are also making sacrifices. Nearly half (46%) are cutting back on non-essential spending (55% of Gen X), while a quarter (25%) are going a step further and skipping or cutting back on essentials (29% of Gen Z).
Gen Z’s summer-at-all-costs mentality
More than half of Gen Z (52%) say they will always prioritize having a fun summer, regardless of their financial situation. And they’re putting their money where their mouth is: 47% of Gen Z say their summer travel plans are more expensive than they can realistically afford, but they don’t plan to scale them back. While they don’t have plans to backtrack, many still feel regret. Four in 10 (41%) say they regret booking an expensive trip months ago that they now feel they cannot afford.
Some Gen Zers are shielded from trade-offs because they’re not footing the bill. Nearly half (46%) say their partner is paying for most or all of their summer travel costs. For those who do have to compromise, 59% plan on taking a “micro” vacation – smaller, more affordable experiences that still feel special but cost less.
Social pressure is adding fuel to the fire, with 45% of Gen Z admitting they have been or expect to be influenced to spend money they don’t have this summer by seeing other people’s social media posts about travel, weddings, events and experiences.
That pressure is also straining friendships: 43% resent their friends for expecting them to spend beyond their means, and 42% have lost or expect to lose a friend because they can’t afford to participate in summer plans like weddings, bachelorette parties or vacations.
“The cost of just about everything, from groceries to gas to airfare, is testing Americans’ financial limits this summer,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “What stands out is the gap between desire and affordability, and how differently generations are responding. Many Gen Xers are stretched thin and making real sacrifices just to get by, while Gen Z is pushing forward with their summer plans even if the math doesn’t add up. If you’re feeling the squeeze, being honest with yourself about what you can truly afford – whether that’s a smaller trip, a staycation or a micro experience – can help prevent a financial hangover that follows you into fall.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between April 29, 2026 and May 1, 2026 among 1,024 adults ages 18 and older.