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Inflation, high interest rates, a rocky job market, and the COVID-19 pandemic\u2014they all have American adults feeling more anxious about money<\/a>, with more people saying they\u2019re the least secure about their finances in over a decade. But those same individuals also said they\u2019re still planning to spend money<\/a> on dining out and vacations and other forms of entertainment this year.<\/p>\n Those are some of the takeaways from Northwestern Mutual\u2019s 2024 Planning and Progress Study, which surveyed 4,588 American adults in January. A full third of respondents, 33%, reported feeling financially insecure\u2014up from 27% in 2023, and the highest share since Northwestern Mutual<\/a> began measuring financial security in 2012. Just 41% of respondents reported feeling very financially secure<\/a>, the smallest share in the report\u2019s history.<\/p>\n There are any number of reasons for that, Christian Mitchell, chief customer officer at Northwestern Mutual, said at a press event for the survey. Though the economy appears stronger now according to traditional metrics like cooling inflation, lower unemployment, and a roaring stock market, many Americans have lingering concerns. Since just 2020, they\u2019ve endured a pandemic that caused joblessness to spike, decades-high inflation, and rising interest rates. A contentious presidential election and global instability aren\u2019t likely to help matters.<\/p>\n That recency bias is weighing on many Americans, particularly when it comes to higher prices. Inflation is the \u201cclear driver underpinning that insecurity,\u201d according to the report, and it\u2019s overshadowing much of the positive economic news. More than half of U.S. adults named it as the single largest obstacle to financial security.<\/p>\n Inflation reached 9% in mid-2022, the highest rate in 40 years, and it still remains above the Federal Reserve\u2019s 2% target. High food and housing prices, in particular, are stretching budgets thin: Food prices are up double digits in the past three years<\/a>, and housing costs have never been higher. <\/p>\n Though inflation has cooled recently, more than half of respondents are expecting it to keep increasing, and just 9% of households said their income is growing at a faster pace. Americans want prices back at pre-pandemic levels, the Federal Reserve has noted<\/a>, but that isn\u2019t happening.<\/p>\n \u201c\u2018Financial shock fatigue\u2019 and fragility are holding people back from positive feelings about their own financial security,\u201d Mitchell said in a press release. \u201cDespite the growing economy, Americans have had to endure one financial disruption after another over the last several years, and it\u2019s hard to feel positive when you don\u2019t know what\u2019s around the corner.\u201d<\/p>\n\n\u2018It\u2019s hard to feel positive\u2019<\/h2>\n