92% of Americans Cut Back Spending in 2025, Even Groceries and Healthcare

New Resume Now report reveals severe financial strain as wages fall behind and households drain savings heading into 2026

GUAYNABO, Puerto Rico, Jan. 7, 2026 /PRNewswire/ -- A new national survey from AI resume builder Resume Now® of 1,011 employed workers reveals that American households are experiencing severe and worsening financial pressure as wages fail to keep pace with rising costs. According to the 2026 Cost-of-Living Crunch Report, just 12% of workers say their pay has kept up with inflation, and only 17% report they can comfortably cover essentials and save. Nearly everyone (92%) has cut back spending in 2025, including essentials such as groceries and healthcare, while 49% have dipped into savings just to get by.

"America is in a cost-of-living crisis, and workers know it," said Keith Spencer, career expert at Resume Now. "Wages simply aren't keeping pace. People are cutting groceries, skipping healthcare, delaying major life decisions, and turning to outside help at record rates. These are survival strategies, not spending choices."

Key Findings

• Paychecks are falling behind: Only 12% of workers say their wages have kept pace with inflation.
• Just 17% of Americans feel financially secure enough to cover essentials and save.
• Affordability is eroding fast: Nearly 4 in 10 say their ability to afford basics worsened this year; another 35% saw no improvement at all.
• Essentials, not luxuries, are driving stress: 65% cite the cost of everyday necessities as their biggest strain.
• 92% cut back spending, even on essential items.
• Households are draining their safety nets: 49% dipped into savings and 24% took on debt — clear signs of widespread financial distress.
• Americans are turning to outside help at rising rates: 46% rely on more family support, government aid, or debt than last year; only 13% rely on less.
• Most households lack a meaningful financial buffer: 60% say they could cover three months or less of expenses if they lost their job.

Most Americans Are Struggling to Afford Basic Living Expenses

Survey data indicates a widespread affordability strain:

• 9% often cannot afford basic living expenses
• 15% can afford essentials but struggle
• 27% can cover essentials but rarely have money left
• 31% can cover essentials and some extras
• Only 17% can comfortably cover essentials and save for the future

Affordability Has Worsened for Many

Compared to last year, three-quarters say that affordability has stayed the same or worsened:

• 35% say affordability stayed the same
• 39% say their ability to afford essentials has worsened
• 26% have seen improvement

Everyday Essentials Are the #1 Financial Stressor

Just 12% say their pay has kept pace with rising costs. The top contributors to resulting financial stress are:

• 65%: prices for everyday essentials
• 43%: housing costs
• 38%: retirement savings
• 37%: healthcare costs
• 37%: lack of emergency savings

Americans Are Cutting Back on Everything — Even Essentials

Percent who reduced spending due to rising costs:

• 69% dining out
• 55% vacations
• 40% groceries
• 35% housing upgrades or moves
• 29% retirement contributions
• 21% healthcare visits or prescriptions
• Only 8% cut nothing

Half of Americans Have Dipped Into Savings to Survive

Coping strategies:

• 49% dipped into savings
• 42% delayed major purchases or milestones
• 28% picked up additional income
• 24% took on debt
• 22% borrowed from friends/family
• 11% relied on government or community aid

Americans Are Turning to Outside Help

Many are increasingly relying on alternative support:

• 46% rely on more outside help than last year
• 41% rely the same amount
• Only 13% rely less

Most Households Have Very Little Financial Cushion

If they lost their job they would be able to cover expenses for:

• 24%: less than a month
• 36%: 1–3 months
• 18%: 4–6 months
• 22%: more than 6 months

To view the full 2026 Cost-of-Living Crunch Report, please visit https://www.resume-now.com/job-resources/careers/cost-of-living-crunch-report or contact Alexa Kalechofsky at alexa.kalechofsky@bold.com.

Methodology:

The findings provided were gathered through a survey of 1,011 U.S. adults on December 7, 2025. Participants answered a wide range of questions about income, financial stress, cost of living, wage trends, employer transparency, and future economic outlook. Question formats included multiple choice, scaled responses, and multi-select options.

About Resume Now

Resume Now is a powerful resource dedicated to helping job-seekers achieve their potential. Resume Now's AI resume builder is a cutting-edge tool that makes creating a resume fast, easy, and painless. Resume Now has been dedicated to serving job seekers since 2005. Alongside its powerful AI resume builder and stylish ready-to-use templates, it also features free advice for job seekers at every career stage, guides for every step of the hiring process, and free resources for writing cover letters. Resume Now is committed to supporting job seekers and workers alike and has conducted numerous surveys related to the experience, trends, and culture of the workplace. These surveys have been featured in Business Insider, CNBC, Fast Company, Yahoo!, Forbes, and more. Keep up with Resume Now on LinkedIn, Facebook, X, and Pinterest.

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SOURCE Resume Now