HONOLULU (KHON20 — The American Dream has long been a tool to provide access for making an individual’s life better. Access to becoming a homeowner, access to a personal vehicle, access to education, access to health/medical care, access to utilities, access to technology, access to consumer goods, access to a disposable income — these have all been markers for how well Americans are doing.
But the days of espousing the universal truth of the American Dream have been slowly dying over the last 20 years.
A new study sheds light on the financial concerns and behaviors of Americans and reveals that inflation continues to be their top financial worry as many are struggling to keep up with rising costs.
The study also highlighted the impact of medical debt, the financial challenges young people face in affording homes, and the financial insecurities affecting most Americans.
Key insights and trends
1. Inflation remains a top concern:
- Inflation is the dominant financial worry for many Americans, with 65% of adults citing it as their main concern for 2025.
- More than half (52%) of people feel their incomes are not keeping up with inflation, and this is making it harder for you to afford everyday essentials like groceries, gas and housing.
2. Medical debt overtakes student loans for Millennials:
- For the first time, medical debt has surpassed college loans as the biggest source of debt for Millennials. This shift reflects how rising healthcare costs are impacting people’s finances more than education debt.
3. Generation Z’s spending habits:
- The study found that 40% of Gen Z plans to increase spending in 2025. This leads other generations responses for the same time period. It reflects greater financial optimism amongst Gen Z compared to the general U.S. population. In contrast, in 2024, 36% of Gen Z intended to spend more on non-essentials versus 26% of U.S. adults.
4. Homeownership feels unattainable for many:
- A significant number of Americans, especially Gen Z and Millennials, believe that homeownership is no longer affordable. Factors like high mortgage rates and the competitive housing market are pushing young people out of the market.
5. Financial insecurity is widespread:
- Despite some optimism about avoiding a recession, feelings of financial insecurity remain high. In fact, 30% of Americans report not feeling financially secure.
- This is forcing people to move from a laissez faire capitalism to becoming more financially disciplined. More people indicated they are trying to focus on budgeting and planning for the future.
6. Debt is a growing issue:
- More people are prioritizing paying down their debt over saving money. About 64% of Americans are focused on reducing debt, and credit card debt continues to be the largest source of non-mortgage debt for most people.
7. Recession fears could fade:
- A little more than half (54%) of U.S. adults said they expect the U.S. to enter a recession this year. This is a substantial drop from the two-thirds (67%) who predicted a recession last year.
8. The changing American Dream:
- Homeownership is no longer seen as the only path to financial security. While 72% of adults still view owning a home as key to building wealth, many people believe financial security can be achieved without owning property, especially as more focus shifts to the stock market.
The 2025 study shows how financial insecurity and inflation are still major worries for many, especially younger generations like Gen Z and Millennials.
These groups are finding it harder to afford homes, face rising medical debt and have different priorities for their financial future.
However, the study also found that financial discipline and planning are showing some improvements, much like during the 1930’s Great Depression.
You can click here to read the full study.