Consumer Pessimism Hits Eight-Year High As Americans Brace For Tougher Finances In 2026 / Fresh Today / CUToday.info

NEW YORK–Rising consumer pessimism is reshaping household financial behavior heading into 2026, with inflation, stagnant incomes, and debt weighing heavily on Americans’ outlook—signals financial institutions may see reflected in borrowing, saving, and advisory demand.

According to Bankrate’s Financial Outlook Survey, 32% of Americans expect their personal finances to worsen in 2026—the highest level of pessimism since Bankrate began tracking the measure in 2018, up from 23% who felt that way a year ago. The shift comes as inflation remains elevated and job growth shows signs of cooling, leaving many households feeling financially exposed despite the broader economic expansion.

While inflation has eased from its 9.1% peak in mid-2022, prices are still roughly 25% higher than in 2020, and median household income has failed to show statistically meaningful growth since before the pandemic. Among respondents expecting their finances to worsen, 78% cited continued high inflation, followed by dissatisfaction with actions taken by elected officials (55%), stagnant or reduced income (46%), and high debt levels (25%).

Optimism has declined as well. Just 34% of Americans expect their finances to improve in 2026, down sharply from 44% in last year’s survey, while another 34% expect conditions to remain unchanged. The erosion in confidence spans political affiliations, with fewer Republicans expecting improvement and a growing share of Democrats anticipating deterioration.

Generationally, pessimism rises with age. Those who do not expect their finances to improve include 54% of Gen Z, 60% of Millennials, 69% of Gen X, and 76% of Baby Boomers. Conversely, expectations for improvement were highest among Gen Z (46%) and lowest among Baby Boomers (25%).

Debt reduction is emerging as the dominant financial priority for 2026, cited by 19% of respondents overall and by fully one-quarter of Gen X and Baby Boomers. Bankrate notes this focus reflects the growing burden of high-cost revolving debt, with average credit-card APRs near 20% and 46% of cardholders carrying balances. Other top goals include finding higher-paying work or additional income (14%), boosting emergency savings (13%), and improving budgeting discipline (12%).

For financial institutions, the data point to a consumer base increasingly focused on stability over growth—prioritizing debt payoff, cash buffers, and income resilience over discretionary spending or risk-taking. As Bankrate’s survey shows, Americans’ financial unease heading into 2026 is not abstract, but rooted in persistent cost pressures and balance-sheet strain likely to shape member and customer behavior in the year ahead.