Rising prices and looming recession warnings have pushed Americans into defensive mode—tightening budgets, pausing major purchases, and looking for new ways to stretch every dollar. But while financial anxiety has climbed, not every expense has made the chopping block.
To better understand how consumers are navigating this climate, CouponFollow surveyed over 1,000 Americans in April 2025. We examined how people are adjusting their saving and spending habits, which essentials they're downgrading, and what purchases they refuse to give up. Our study also reveals which generations are feeling most vulnerable and how Gen Z, in particular, is coping with economic stress.
Financial uncertainty is taking a toll on Americans' sense of security. Many are feeling the pressure (both emotionally and practically) as they dip into savings, brace for income loss, and question their ability to weather a recession. Gen Z appears especially vulnerable, reporting the highest levels of financial anxiety and unpreparedness.
29% of Americans have had to withdraw money from their savings in the past 6 months to cover everyday expenses. Those who had to do so by generation include:
69% of Americans feel more financially anxious this year than they did last year, and nearly half (45%) feel unprepared for a potential recession. Those feeling unprepared by generation include:
Over half of Americans (52%) could only cover expenses for 2 months or less if they lost their income. Gen Z (58%) is the most likely to say so.
As fears of a recession intensify, Americans have started taking tangible steps to rein in spending. From swapping out name brands for generics to skipping eating out, people are adjusting their habits in real time.
Over half of Americans (56%) have already started cutting back on spending due to recession concerns. By generation:
43% of Americans have bought fewer groceries or limited quantities of what they buy to save money on essentials, 40% have switched to store-brand products, and 38% are using coupons or discount codes more often.
In the past 3 months, 1 in 10 Americans have skipped credit card payments amid economic concerns, with Gen X (13%) and Gen Z (12%) being the most likely to have done so.
About 1 in 4 Americans (26%) are pretending to spend normally, even though they're cutting back. Gen Z (40%) is the most likely to do this, and they're also the most likely to be planning to cut expenses due to recession concerns (28%).
Even under financial strain, some expenses remain off-limits to personal budget cuts. From mental health care to pet essentials, Americans are holding firm on purchases that support their well-being or bring joy. Gen Z stands out for prioritizing emotional and personal needs, even when money is tight.
During a recession, 27% of Gen Z wouldn't cut spending on therapy or mental health care, the highest of any generation. They also lead in refusing to cut fitness memberships (21%) and hobbies or creative outlets (21%).
While pet care ranked highest across all generations, Gen Z (36%) was slightly less likely than older generations (baby boomers at 44%, Gen X at 43%) to list it as untouchable.
15% of Gen Z found cutting personal care (like nails, haircuts, and skin care) emotionally difficult—more than double the rate of Gen X (7%) and baby boomers (5%).
Only 8% of Gen Z feel travel is the hardest thing to give up, compared to 18% of baby boomers and 17% of Gen X.
Despite rising financial anxiety, many Americans are finding ways to adjust without giving up what matters most. Strategic choices like prioritizing essentials, choosing more affordable alternatives, and seeking out discounts are helping people stay grounded. These habits show that even in tough times, it's possible to make thoughtful decisions that protect both your wallet and your well-being.
We surveyed 1,004 Americans to explore how they are responding to economic uncertainty in 2025. The generational breakdown is Gen Z (16%), millennials (52%), Gen X (25%), and baby boomers (8%). The data was collected in April 2025. Due to rounding, some percentages may not total 100 in this study.
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