Photo: BillionPhotos/Adobe Stock
Americans are reassessing their budgets and insurance needs as caution around finances grows, according to a new survey from Nationwide.
The survey found Americans are cutting back across many categories. Among those surveyed, 47% said they’re making fewer impulse purchases, and 32% said they’re opting for used or secondhand goods. Others have postponed or canceled a vacation (48%), delayed or skipped purchasing a car (46%) and postponed a wedding (19%). Many (42%) are planning to cut their holiday spending this year too.
Credit card usage is on the rise. Among respondents, 61% are carrying credit card debt, and 20% said they’ve increased their debt usage over the past year. Many Americans are also turning to gig work (35%) to help make ends meet.
About one-third of respondents (35%) said they believe the economy will get worse in 2026, with many citing concerns about inflation (78%) and global trade tensions (71%). In the year ahead, Americans said they expect difficulty managing health care costs (43%) and challenges paying off debt (39%).
When it comes to insurance needs, many Americans could benefit from advice from an agent or other financial professional. Only one-quarter of Americans are working with a financial advisor or planner. Those who don’t work with an advisor are turning to social media for advice, like YouTube (66%) and Facebook (55%).
Many consumers prefer to turn to agents for advice on insurance (46%) though, far ahead of AI tools (17%). And 56% said they never use AI to gather information on home or auto insurance.
“When financial uncertainty sets in, people don’t just need information, they need reassurance,” said Michael Tripp, Nationwide’s senior vice president, personal lines sales and distribution, in a statement. “AI can offer data, but independent agents have the experience and perspective to translate it into real-world protection that fits a family’s budget and priorities. It’s that personal connection and guidance that makes them feel secure.”
Photo credit: BillionPhotos/Adobe Stock
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