Many Americans report their dollars do not stretch as far as before, with inflation elevated, interest rates high, tariffs increasing prices, and talk of a potential recession continuing. An Equitable survey found only 42% of Americans say they feel prepared to handle current financial challenges, and over two-thirds worry the economy could derail their long-term goals.
The survey revealed a divide between those with financial help and those without. Individuals with a financial advisor feel twice as prepared as those without one. People are stressed, but planning and guidance help them feel more grounded.
Emily Koochel, Ph.D., referenced eMoney's Planning Better Together research, stating, "Today's financial planning landscape is characterized by a growing demand from individuals who are increasingly concerned about high interest rates and the rising cost of living." She added, "Respondents are preparing for long-term uncertainty. With 78% reporting, 'I am thinking about how to manage my money with inflation at an elevated rate for the next few years', 77% reporting they are following a budget more closely due to rising prices, and 62% reporting they have put making a major purchase on hold. Conversely, 52% report they have a financial plan and feel secure in their life because of it."
Equitable also found about half of Americans expect to cut discretionary spending, increase savings, or adjust investments this year. Nearly two-thirds of stock market investors say they would trade higher returns for more protection. Stability is a priority now.
The confidence gap between people who work with advisors and those who do not is significant. Nearly 6 in 10 people with an advisor feel prepared for today's financial pressures, according to Equitable. Only 3 in 10 of those without one feel the same.
People with advisors are more likely to adjust their portfolios. Fifty-four percent plan to make changes compared with 36% of those without professional support, per Equitable.
Trust plays a major role. Koochel noted, "People are increasingly turning to financial advisors, with nearly half either already working with a professional (26%) or planning to within the next year (21%). Their choice to work with their financial professional is driven by trusting in their advisor's experience (39%), their ability to simplify complex information (35%), and the consumers' desire to work with someone who truly understands their personal priorities and values (34%)."
For those without an advisor, institutions like Charles Schwab recommend steps such as reviewing financial goals regularly, monitoring spending, and building an emergency fund covering a few months of essential costs. A basic DIY financial plan can help make clearer decisions during uncertain times.
Practical starting points include reviewing budgets as prices change, checking goals and risk tolerance annually, building short-term savings for unexpected costs, relying on reputable financial education sources instead of social media, and using low-cost planning tools or counseling services if a full advisor is not affordable. Small, steady habits can create a stronger sense of control.