A recent report from the Federal Reserve reveals that while most Americans reported being financially okay last year, the economic well-being of Black adults, younger individuals, and low-income groups has deteriorated significantly.
According to the Federal Reserve Board's survey conducted in October, 73% of U.S. adults overall said they were at least doing okay financially. This figure is lower than pre- and post-pandemic levels but matches the 2024 reading.
Breaking down the data: 86% of college graduates, 82% of Asian adults, and 91% of those earning over $100,000 annually reported being financially okay.
However, the situation for Black Americans is starkly different, showing a notable decline in financial health. In 2025, only 60% of Black adults reported being financially okay or living comfortably, down from 65% in 2024. Similarly, financial satisfaction dropped among young adults aged 18–29 and low-income individuals, with only 63% of young people feeling financially stable.
The Federal Reserve attributes the worsening economic conditions for youth partly to a sluggish job market. Wage growth in 2025 was exceptionally weak, and the unemployment rate for recent college graduates crept up. The proportion of young adults under 30 still living with their parents surged to 49% last year, a 12-percentage-point increase from 2019.
The report further notes: "In 2025, 15% of young adults had given up looking for work because they could not find a job, three times the rate for those aged 30 and above."
Rising living costs have also negatively impacted how people perceive their financial situations. Low-income individuals and young adults expressed greater concern about price increases: 66% of adults earning under $50,000 annually cited rising prices as a top worry, compared to just 42% of those earning over $100,000.
Rent pressure is also evident: although the median rent remained stable at $1,200, the share of renters falling behind on payments over the past year rose notably from 2024, with low-income groups hit hardest.
Overall, the proportion of people viewing price increases as a major or minor concern remained largely unchanged, with inflation still the top financial anxiety for Americans. At the same time, concerns about finding or keeping a job have increased.
Consequently, the share of adults rating the national economy as good or excellent fell to 26%. While this is higher than the 18% recorded in 2022, it remains well below the 50% seen in 2019.
The report concludes: "Over the past year, positive assessments of both local and national economic conditions have continued to decline and remain far below pre-pandemic 2019 levels."
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