Nearly three quarters of American adults said they were managing financially in 2025, but the Federal Reserve's latest survey of household economics reveals a more complicated picture beneath that headline stability.
The Fed's annual Survey of Household Economics and Decision-making, known as SHED, was conducted in October 2025 and published Wednesday. It found that 73% of adults described themselves as either "doing okay" or "living comfortably" financially — a figure that has barely budged since 2022 but sits below the pre-pandemic plateau of 75% and well short of the 78% peak reached in 2021.
"As we work to support a strong and vibrant economy, it's critical for the Federal Reserve to understand the economic experiences of families and communities," said Federal Reserve Board Governor Michael S. Barr. "The SHED provides valuable data on how households are dealing with evolving financial opportunities and challenges."
The stability in that top-line number masks significant deterioration among specific demographic groups.
Financial well-being declined for young adults, low-income households, and Black adults — a trifecta of vulnerability that suggests the benefits of a still-functional economy are not being distributed evenly.
Black adults experienced the starkest pullback, with the share describing themselves as doing okay or living comfortably falling 5 percentage points from 2024 to 60%.
White adults, by contrast, saw a modest improvement, while results for Hispanic and Asian adults were statistically unchanged. The racial gap in credit denial rates tells a similar story: Black applicants faced a 54% denial or reduced-credit rate in 2025, more than double the rate for White applicants; a disparity that has persisted for over a decade.
For young adults, the squeeze is coming from the labor market. Fifteen percent of adults under age 30 reported that they were not working because they could not find employment, up 2 percentage points from 2024 and 5 points from 2023.
Nearly half of all adults between the ages of 18 and 29 (47%) relied on financial help from someone outside their household to cover at least one expense in the prior 12 months, most commonly a cell phone bill, general living costs, or housing.
Anxiety about job security has also spread beyond the youngest cohort. Forty-two percent of adults said "finding or keeping a job" was either a minor or major concern, up sharply from 37% in 2024.
Across all age groups and income levels, more adults reported that worry than the prior year.
Layoffs ticked higher, as 7% of all adults reported being laid off while the share of workers who voluntarily quit edged down to 8%. The share of adults landing new jobs also declined despite stable application rates, a combination the Fed described as suggesting a "solid but softening labor market."
On inflation, Americans registered cautious improvement. While 91% still identified price increases as at least a minor financial concern — unchanged from 2024 — the share calling it a major concern dipped to 53% (down from 56%).
Fifty-eight percent said inflation over the prior year had made their financial situation worse, down from 60% in 2024 and 65% in 2023. That gradual retreat offers some relief, though lower-income households, middle-aged adults, and Hispanic adults remained disproportionately exposed.
Emergency savings buffers held steady but remained worryingly thin for many households. The share of adults who would cover a hypothetical $400 emergency expense using cash or the equivalent stayed flat at 63%; unchanged from 2024 but down from a high of 68% in 2021.
Retirement readiness showed no meaningful progress either.
Just 35% of non-retirees believed their retirement savings plan was on track, unchanged from 2024 and notably below the 40% recorded in 2021. Fourteen percent of non-retirees tapped their retirement accounts in some form over the prior 12 months — through loans, withdrawals, or reduced contributions — with those who experienced a major unexpected expense or a layoff far more likely to have done so.
Average credit card balances among respondents who said they were "finding it difficult to get by" surged more than 35% over two years, to $9,265, compared with a near-flat increase for those living comfortably. The concentrated growth of balances among financially distressed households is a marked shift from prior years.
Meanwhile, the housing picture darkened for renters. Nearly one in four reported falling behind on rent at some point during 2025, up 2 percentage points from 2024 and 6 points since 2021, when pandemic-era protections were still in place. For renters earning below $50,000, the delinquency rate climbed to roughly one in three.
Homeowners faced their own pressures: 6% went without homeowners insurance entirely — the majority due to cost — while 20% of insured homeowners said they couldn't afford as much coverage as they wanted.
Financial fraud remained a persistent drain. One in five adults experienced some form of financial fraud or scam in 2025, with non-credit-card fraud alone generating an estimated $100 billion in losses, of which consumers absorbed $56 billion after recoveries. For households earning below $50,000, the median fraud loss was $400 — a significant sum given that 4 in 10 adults in that income bracket could not cover even a $100 emergency using savings alone.
The survey covered 12,934 respondents and was fielded by research firm Ipsos between October 17 and October 28, 2025.
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