Rising Household Financial Strain Evident in U.S. Consumer Surveys 2024

Recent consumer finance surveys reveal that U.S. households are experiencing increasing financial strain despite stable incomes. The Financial Industry Regulatory Authority's (FINRA) 2024 National Financial Capability Study indicates that 26% of Americans report spending more than they earn, a notable rise from previous surveys where the figure ranged between 18% and 20%. This suggests a reversal of financial progress made since 2009, with fewer Americans finding it easy to pay all their bills compared to prior years. The FINRA study also highlights a rise in financial anxiety, with 63% of respondents reporting stress about their personal finances, up from 56% in 2021. Additionally, around 35% of participants indicated that they could not readily cover an unexpected $2,000 expense, reflecting weakening emergency financial resilience among U.S. households. Inflation remains a significant concern impacting household budgets and mental health. According to Northwestern Mutual's 2025 Planning & Progress study, over half of U.S. adults feel inflation is outpacing income growth, and nearly two-thirds view inflation as the primary threat to their financial security. This inflationary pressure negatively affects wellbeing, with many reporting anxiety and sleep disturbances linked to financial worries. The compounded effects of rising costs in essentials such as housing, groceries, and fuel are contributing to widespread budgetary pressures across income groups, with middle-income households particularly affected. These challenges underscore complex market dynamics that insurance providers must consider amid consumer fiscal stress and changing risk profiles. Both FINRA and Northwestern Mutual studies provide data-driven insights valuable to insurers, financial advisors, and regulatory bodies as they monitor economic stability, consumer capacity for risk management, and the broader implications for insurance product demand and credit risk.