TOUGH FINANCIAL CHOICES: The majority of Americans say they are making them to navigate their lives. STOCK PHOTO

(StatePoint) – If you’ve been watching your wallet, you’re not alone. As Americans continue to navigate inflation, 76 percent report cutting back on spending, up from 67 percent in 2024, according to the second annual Wells Fargo Money Study.

The majority of Americans also say they are making tough financial choices to navigate their lives, including delaying plans with hefty price tags, such as travel, homeownership, education, marriage and retirement.

“There is a clear social narrative surrounding the question: ‘do I, and will I, have enough?’ The fact that these questions are being asked is positive because we know the earlier people focus on their money behaviors, the more time they have to course correct to achieve their goals,” said Michael Liersch, head of Advice and Planning at Wells Fargo.

Consumers continue to navigate higher than expected prices. An overwhelming 90% of those surveyed responded they feel “sticker shock” in one or more areas of common spending, including eating out, attending a concert, buying a bottle of water, or downloading a video game, and say actual costs are between 55 percent and 200 percent higher than what they expect.

“Spending is one of the most important factors to staying on track,” said Liersch. “I would encourage people to align their spending with what matters most to them.”

Nearly all Americans (94 percent) acknowledge that they want to do just that: align money choices with their values, and 86 percent want to be more intentional and thoughtful about spending.

According to Liersch, “These insights highlight that Americans are not just winging it. They are being extraordinarily introspective as they navigate their financial priorities.”

Money can be an emotional topic, at times inciting envy, anxiety and secretiveness. While 87 percent of Americans say it makes no difference to them how much money another person has, 56 percent keep how much they have secret, and 32 percent of them say it’s because they are trying to avoid people judging them.

Americans also spend time thinking about how much money other people have – and wishing they could have more themselves. Forty-seven percent responded they often feel envious of how much money other people have, 37 percent admit to obsessing about getting rich, 34% admire social media millionaires, and 23 percent admit to sometimes overspending just to keep up with people around them.

“Americans appear comfortable with other people being authentic about their financial situation, which is encouraging,” Liersch says. “So now it’s time to overcome self-judgment and reset the frame of reference from others to one’s own personal benchmark.”

Eighty-six percent of respondents say they have a clear picture of what they want their money to do for them. And the vast majority are optimistic about how to do it: 87 percent say now is a good time to save and 65 percent say now is a good time to invest. Yet 61 percent say they need a mental reset, and are being held back by such factors as difficulty changing habits, lack of financial knowledge and other financial responsibilities.

To overcome these challenges, Americans are seeking more financial advice year over year. Last year, 24 percent said they were seeking more advice from others; this year it’s 36 percent. Looking across generations, the desire for more advice is higher among teens (54 percent), gen Z adults (61 percent) and millennials (46 percent).

At a time when many are feeling cash-strapped, learning new ways to think about and manage money can help you take control of your financial future.