For its 2025 Money Study, Wells Fargo surveyed thousands of Americans to gain a deeper understanding of how they think, feel and act with their money. Its findings were wide-ranging (you can see the full study at wellsfargo.com/moneystudy2025), including a couple of particular interest for investors:
Inflation is changing spending habits
From groceries and gas to entertainment, 90% of respondents reported experiencing “sticker shock” over everyday expenses, such as dining out, event tickets, streaming services and even basics like bottled water.
Whether you call it tightening your belt, cutting back or simply spending less, many consumers were reevaluating how they handle their money. According to the study, more than 75% of Americans were cutting back on spending in a time of ongoing inflation. The trend was even more pronounced among younger generations. The study found 82% of Gen Z and 79% of Millennials were cutting back on spending. Surprisingly, even 60% of teens, the youngest generation surveyed, had trimmed their normal spending.
These shifts reflected a broader movement toward cautious spending. The survey found many Americans were delaying life plans (55%), including travel (74% of those delaying plans), home renovation projects (39%), and even moving (30%) or buying a home (30%). One in six who were delaying plans were putting off education plans, one in seven had delayed getting married, and one in eight have put off retirement.
These findings help spotlight the importance of factoring inflation into your investment planning, which may help you avoid seeing inflation erode your investments’ purchasing power over time.
To help beat inflation, consider investments with a return potential that’s higher than the inflation rate. However, keep in mind that risk and return tend to go hand in hand. As a result, if you purchase investments with higher return potential (like stocks) than other investments (bonds, for example) you may incur greater price volatility.
The key is to find the balance that’s right for you — a portfolio that helps you overcome inflation but without the kind of volatility that keeps you awake at night.
More individuals are looking for advice
While 86% of Americans say they have a clear understanding of what they want their money to achieve, they face significant barriers. Three out of five (61%) say they could use a mental reset, and among them nearly half (48%) say the difficulty of changing their financial habits is an obstacle holding them back. Others struggle with balancing immediate needs against long-term planning.
Not surprisingly, there has been a 12% year-over-year increase in people from all age groups seeking financial advice. So, if you have questions about managing your money, you’re not alone, and you may want to look to a professional financial adviser for help.
On behalf of Wells Fargo, Versta Research conducted a national survey of 3,657 U.S. adults and 203 U.S. teens age 14 to 17. Sampling was stratified, and data were weighted by age, gender, race, ethnicity, income and education to achieve accurate representation of the current population based on estimates from the U.S. Census Bureau. The survey was conducted from Sept. 5 to Oct. 4, 2024. Assuming no sample bias, the maximum margin of error for full-sample estimates is ±2%.
This article was written by Wells Fargo Advisors Financial Network and provided courtesy of Bryan S. Fazio, Senior Financial Advisor in Ponte Vedra Beach at (904) 913-8122. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Fazio Asset Management is a separate entity from WFAFN. © 2025 Wells Fargo Advisors Financial Network, LLC. PM-11192026-7425974.1.22
