- The total share of financially unhealthy consumers in the U.S. fell to 68%, a 4-percentage-point improvement from January
- One-third of consumers say their financial situation will worsen in the next three months
The vast majority of consumers have changed spending habits, with many purchasing less expensive grocery items and even purchasing less food for their households
As holiday bills continue to be paid off and tax refunds get set to hit consumers’ bank accounts, the number of consumers in the U.S. classified as financially unhealthy[1] is 68%, as measured by JD Power. That marks an improvement from 72% last month, but it hardly spells widespread relief.
Overall, 50% of consumers are buying fewer items to stay within a budget, and 25% say they are using savings to survive today. While consumers try to stay resilient in trying times – 38% have found new ways to earn extra income, for example – the struggles they are experiencing are becoming hard to ignore.
Financial Health Improves Slightly
In February, the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, fell to 68%. That reflects a 4-percentage-point improvement from January.
Still, despite that improvement, fewer than half of consumers feel financially stable or secure. In fact, 32% say that they worry their financial situation will worsen over the next three months. Overall, 65% of consumers say the price of goods is increasing faster than their income in February, a slight decline from the rate of the past six months.
The Slow Burn of Higher Prices
Bubbling under the surface of these overall financial health readings is a very real need for a capital infusion. Overall, 50% of consumers say they have changed the amount of goods that they purchase to fit a tighter budget, and 25% say they are using money from their existing savings to pay for their current expenses.
Overall, 86% of consumers say they have changed their spending habits, and not just their discretionary spending. A staggering 42% say they have purchased less expensive food items, while 34% say they have turned down their thermostat in their home, and 33% say they have switched to less expensive food options.
Consumers are trying to find ways to combat these changes to their budgets. When asked what actions they’ve taken in the last three months to make more money available to manage increasing costs, 38% of consumers say they have found new ways to earn extra income, while 27% have changed how much they contribute to savings, and 17% have lowered debt payments.
Consumers under the age of 40 are particularly aggressive in altering their habits, potentially sacrificing their future to improve their present financial situation. These consumers are twice as likely to reduce investing (21% vs. 12%), reduce retirement contributions (17% vs. 9%) and refinance existing debt (15% vs. 7%) than those over the age of 40 (7%).
Tax Return to the Rescue?
Tax season is here, and while some consumers are concerned they may owe more this year, others are banking on refunds. Almost half (49%) of consumers say they have the same level of anxiety about tax season than they did last year, while 23% have more anxiety than normal, and 8% have less. Overall, 20% say they have no anxiety about tax season. All of these levels are largely in line with 2025.
When asked about their expected tax outcome, most consumers are cautiously optimistic. Just 16% said they expect to pay more than last year, down from 22%, and 21% say they expect to pay the same as last year, down from 24%. Meanwhile, 16% say they expect a bigger return from last year, up from 11%, while 27% say they expect the same refund as last year.
Resilience in the Face of Hardship
Even if consumers do get a favorable tax outcome, the underlying metrics around financial health should give everyone pause. Yes, consumers are exhibiting resilience in the face of financial difficulties, finding ways to creatively patch together a tighter budget, but some of the spending cuts being made by a wide swath of consumers aren’t necessarily sustainable.
About one‑third of consumers — and nearly half of those under 40 — have sought help affording everyday living. When it comes to financial advice, consumers are as likely to consult internet or social media sources as they are to talk to a bank (both 25%) and are twice as likely to ask family or a friend (54%). This is where banks could make inroads into building better relationships and offering the kinds of financial advice and spend management tools to help consumers navigate the current economy.
Find out More
This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in February 2026. It was authored by Jennifer White, senior director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.
Media Contacts
Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Joe LaMuraglia, J.D. Power; East Coast; 714-621-6224; [email protected]
[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.