- A staggering 92% of employed Americans are cutting back on spending.
- Only 17% feel financially secure enough to cover essentials and save.
- Nearly half of workers had to dip into savings last year due to high costs.
- Four in ten are cutting grocery spending as food prices soar.
- Experts warn this is a deep systemic crisis, not temporary belt-tightening.
If your grocery bill makes you wince and your paycheck seems to vanish before the month ends, you are far from alone. A new national survey shows an affordability crisis squeezing American workers, revealing that a staggering 92% of employed adults have been forced to cut back on spending. The data shows the painful trade-offs families are making just to stay afloat, pointing to systemic economic pressures decades in the making.
The 2026 Cost-of-Living Crunch Report from Resume Now, which surveyed 1,011 employed Americans, found that only 17% feel financially secure enough to cover essentials and still save money. For the vast majority, the dream of financial stability is slipping away. “These numbers tell a dramatic story and it is not a good one,” certified financial planner Bobbi Rebell told Newsweek. “The vast majority are feeling more than crunched.”
A systemic squeeze
This isn’t about temporary belt-tightening. Experts warn the data indicates deep, structural problems. “It is clear, based on this data, that we are experiencing a real cost-of-living crisis as opposed to an immediate inflationary response to the COVID-19 pandemic,” said Jared Kessler, founder of Forex Broker. The core issue is a persistent mismatch: everyday prices continue to rise faster than wages for most. Only 12% of surveyed workers reported that their pay has kept up with inflation.
The consequences are severe. Sixty-five percent of respondents said affording everyday essentials is a top contributor to their financial strain. To bridge the gap, nearly half (49%) dipped into savings in 2025, and 24% took on new debt, which the report calls “clear signs of widespread financial distress.” The safety net is thin; 60% said they could only cover three months or less of expenses if they lost their job.
Muscling through higher prices
Consumers are caught in a vise. “What we’re seeing is there is still inflation pressure across the system, particularly in the retail environment, and consumers, through our research tell us that they are effectively trying to muscle through this,” said Will Auchincloss, Americas retail sector leader at EY-Parthenon. “They’re trying to buy what they’ve always bought or want to buy, but in the face of higher prices.” This effort to maintain a normal life is driving concerning trends. Household debt, including mortgages and credit cards, recently hit a record $18.59 trillion.
The pinch is forcing hard choices on necessities. Four in 10 respondents reported cutting grocery spending, while more than one in five have delayed healthcare visits or prescriptions due to cost. This comes as government data shows food prices have climbed 28.3% since January 2020. “As individuals reduce spending on these essential needs and deplete their savings accounts, it will likely indicate that the consumer has reached a point of long-term financial unaffordability,” Kessler said.
The political rhetoric acknowledges the pain, even if solutions are debated. While President Donald Trump has called “affordability” a “con job by the Democrats,” others, like Rep. Sarah McBride (D-Del.), insist, “The affordability crisis is not a hoax, it is a reality felt by Americans everywhere.” Public sentiment validates the concern. A separate Marist poll found 70% of Americans say the cost of living where they live is not very affordable or not affordable at all for the average family.
This crisis has roots that run deep, stemming from decades of federal borrowing and monetary policy that have eroded the dollar’s purchasing power. The U.S. national debt now stands at $38.4 trillion, a weight that burdens the economy. The current situation represents the culmination of long-term trends, not a short-term shock. “This isn’t psychological. This is systemic,” Rebell emphasized.
So, where does this leave the average American family? The road ahead requires prudence in an uncertain landscape. “The smartest approach for households heading into 2026 is to be selective with spending, prioritizing debt repayment,” advised business development expert Leanna Haakons. The data suggests a nation of workers is already following that advice out of sheer necessity, trimming their lives down to the essentials while hoping their jobs and savings can hold out a little longer. The great American standard of living, once the envy of the world, is now being measured in cutbacks and monthly survival math.
Sources for this article include:
TheEconomicCollapseBlog.com
CNBC.com
Newsweek.com
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