This year, tax refunds have served as a lifeline for many Americans who are dependent on this windfall to make ends meet. While some people think of their tax refund as “free money,” today’s cost of living has made it so many have less of a choice in how they use those funds. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 61% of Americans surveyed have filed their taxes, and 47% have received their tax refund. In fact, a majority of people who received their refunds already, used a service or product to access their refund early (64%), including nearly three quarters (72%) of millennials. 

For older Americans, their motivation to get their refund early doesn’t go that deep – 64% of boomers+ admit they just wanted their refund early. However, younger Americans may have had less of a choice. More than one-third (37%) of millennials say they needed their refund early to buy essential items like groceries, and 30% of millennials and Gen X needed to pay important bills. More than a quarter (28%) of Gen Z needed their refund to pay for expenses they’ve been delaying, such as a car repair, and a quarter (25%) of Gen Z and millennials needed to pay down high-interest debt. 

Of the 82% of taxpayers who have used some or all of their refund, usage behaviors match those who accessed their refund early. As expected, 41% of Americans who have spent their tax refund, used it to pay for necessities, while others used it to pay down debt (35%) and put it into a savings account (25%). 

While half of Americans (49%) are even more dependent on their refund to make ends meet this year than in years past, nearly one-third (31%) view their refund as “free money,” and their spending habits likely mirror the portion of Americans who said they used their refund to pay for travel (16%), non-essentials (14%) and experiences, like concerts or sporting events (12%). 

Regardless of how people chose to spend their refund, many were underwhelmed with the amount they pocketed. Two in five (40%) taxpayers who received a refund were disappointed by the size, including half (50%) of Gen Z, and 46% of people say their tax refund was lower than last year’s. 

Those who owe face sticker shock 

Among tax filers who are not expecting a refund this year, 59% owe the IRS, which likely came as a shock to the 30% who did not expect to owe money this tax season. Likely to their chagrin, 54% owe more this year than they did last year. Luckily, half (51%) of those who owe money will pull from their checking account to pay their bill, but nearly a quarter (23%) will need to dip into their savings. 

While more than three quarters (76%) of taxpayers don’t expect to take on debt to pay their tax bill, one in five (20%) do. Gen X is especially likely to take on debt to pay their bill (41%), as well as 35% of those with less than $50K in household income and 25% of Gen Z. 

Millennials aren’t immune to tax scams 

Potential tax scams are top of mind for many Americans, including the 40% who admit they are worried about being victims of tax fraud and scams. These concerns have people taking proactive measures to avoid such a fate, including roughly half (52%) of filers who say they always file early to avoid tax fraud and scams, while 62% say they’ve taken steps to protect themselves. Some of these steps include keeping tax documents secure (67%), not clicking on links from unknown senders (64%), never sharing personal information over the phone/email (63%) or on social media (61%), using secure website and Wi-Fi networks (52%), updating software (48%) and researching common scams (32%). 

Millennials seem to be the unlucky ones when it comes to tax scams, with roughly one in seven (15%) admitting they’ve been a victim of tax fraud/scams in the last few years, which resulted in serious consequences, including identity theft (41%), legal proceedings (36%) and financial losses (36%), to name a few. For one in five (20%) millennials, financial losses exceeded $5,000. 

“The many Americans not only choosing to receive their tax refunds early this year, but also using them for essentials, bills, and debt repayment is proof that people are feeling financially burdened, and struggling to keep up with the rising cost of living,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Even if it’s forced by current economic circumstances, it also reflects responsible money management, as people are prioritizing needs over wants. A tax refund is a great opportunity to improve your financial health, so for those still awaiting their refund, I suggest allocating no more than 10-20% for enjoyment and putting the remainder toward things like paying down debt or building an emergency fund.”

Methodology: 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on March 10, 2025 to March 12, 2025 among 1,003 adults ages 18 and older. 

Weekly grocery hauls cost a lot more than they used to, and it’s dramatically impacting Americans, from resorting to unhealthy options and skipped meals to general financial strain. Whether it’s feeding a family of six or dinner for one, the rising cost of essentials is not only changing the way consumers shop and budget, but how they feel and live their daily lives. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, 82% of Americans are concerned about inflation’s impact on daily necessities. In fact, 77% of people say they have felt the most significant increase in grocery costs, followed by utility bills (39%) and gasoline (37%).

Essential items are also eating up a large portion of people’s budgets, and fast, with 30% reporting they spend more than 60% of their monthly income on bills, groceries, and housing, rising to 40% of those with household incomes (HHI) of less than $50K. To cope with persistent inflation, 58% of Americans have had to cut back on non-essential spending like dining out or shopping, and many have taken more drastic measures, like accumulating debt (26%), depleting their savings (24%), and neglecting medical care (17%). 

Sadly, as many as 30% are unable to replenish their depleted savings, noting they are unable to put any of their monthly income toward savings. 

Grocery costs take a physical and emotional toll on consumers 

The rising cost of groceries has forced many Americans to make difficult, and potentially harmful, financial and lifestyle adjustments. One in five (20%) say they are buying more unhealthy food for themselves and their families because it’s the cheaper option, 25% admit to occasionally skipping meals, a habit even more common among Gen Z (32%), and 21% have had to sacrifice other necessities to afford their groceries.

To soften the blow, many people are getting thrifty, they’re buying generic or store-brand products (56%), shopping at discount stores like Dollar Tree or Dollar General (35%), or prioritizing shopping at retailers that offer promotions (22%). 

This financial strain has even led to emotional distress for some, with 19% of people admitting they feel ashamed about their inability to afford groceries.  

Yearning for yesteryear 

Three-quarters of Americans (76%) say that their money doesn’t go as far as it did three years ago, and nearly a third (31%) say they’d need an additional $1,500 to $2,000+ per month to afford the same standard of living from three years ago. This feeling of needing more to survive is especially pronounced among Gen Z and millennials, 23% and 24% of whom respectively say they’d need $2,000 or more each month to maintain the same standard of living they once had. 

Government and community lifelines help some, but not all

Many Americans find themselves in a financial pickle amid today’s cost of living, with half (50%) claiming they earn too much money to qualify for government assistance but not enough to comfortably afford necessities like groceries. That’s not to say people aren’t turning to government and community resources for help. About one in six (17%) Americans have applied, or considered applying for food stamps, while others are relying on food banks (16%). 

Americans brace for a new normal; Gen Z remains resistant

Despite the financial burden many are facing today, there are signs that Americans are starting to adjust to the new normal. As many as 64% say they’ve accepted that higher prices for essential items are likely here to stay. However, Gen Z is not as willing to make the necessary adjustments to their budget. While a healthy 48% of Gen Zers are limiting or halting non-essential spending, it doesn’t compare to the same willingness among millennials (55%), Gen X (73%) and boomers  (77%). 

“The rising cost of essentials, particularly groceries, is putting immense financial pressure on American households across various income levels, forcing people to make difficult tradeoffs that may be suboptimal for their health,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Everyone should feel empowered to tap into all resources available to them, and if you’re looking for ways to save on groceries, I recommend shopping with a list to avoid impulse purchases, choosing in-season produce for better prices, and meal planning around your local store’s sales and promotions.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025, to March 11, 2025, among 2,074 adults ages 18 and older.   

The flurry of tariff announcements that have taken place these past few months have Americans on notice, with many adjusting their wallets as a result. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among 2,000+ U.S. adults ages 18 and older, roughly three quarters of Americans (73%) say they are aware of the imposed and pledged tariffs on imports from China, Canada and Mexico, and a majority of them (82%) believe these tariffs will impact the prices of everyday goods. 

Consumer anticipation of further cost shifts come at a time when 82% of Americans are concerned about inflation and its impact on pricing for essential items like food, housing and gasoline. As prices for essential items increase / remain elevated, many Americans are dependent on credit, especially young people – 45% of Gen Z and 46% of millennials say they rely on credit cards. 

Spending behaviors vary in the wake of tariffs

A majority of Americans (87%) assume tariffs will increase prices – whether it be price hikes on some goods (47%) or on all goods (40%). Regardless of their expected reach, half of Americans (51%) have changed their spending habits in anticipation of tariffs, especially Gen Z (67%) and millennials (61%). 

In terms of how Americans are preparing for tariffs, their spending behaviors run the gamut. Many are cutting back on non-essential purchases to save money (62%), while others are getting thrifty by looking for cheaper alternatives, like store brands or secondhand items (55%). 

On one end of the spectrum, people aren’t waiting out the impact, but instead are choosing to stock up on certain goods now in case prices go up (43%), buying more domestically made products (29%), and even making major purchases (i.e. car, appliances) now to get ahead of potential tariff impacts (18%). On the other end, consumers are taking the “wait and see” approach, with 37% delaying major purchases until they understand the impact of tariffs. 

According to consumers, no item will be spared 

When asked which everyday goods consumers expect to be more costly as a result of tariffs, a whopping 84% expect groceries and food items to be hit the hardest, followed by electronics and appliances (69%), vehicles and auto parts (69%), gasoline and energy costs (66%), clothing and apparel (64%), household essentials, such as cleaning supplies (54%), furniture and home goods (49%) and children’s toys (39%). 

Not everyone is fazed by tariffs – sometimes out of necessity 

Tariffs have Americans split down the middle when it comes to spending adjustments, with nearly half of Americans (49%) saying they have not changed their spending habits in anticipation of tariffs. However, reasoning is nuanced, especially when broken down by Americans’ income status. 

The main reasons people aren’t adjusting their spending include the unwillingness to change their spending unless they see prices actually shift (42%), and having other priorities to focus on right now (39%). The latter applies to about half (51%) of Americans with less than $50K in household income (HHI), compared to 29% of those with a HHI of $100K+. This likely reflects the reality of those who deal with more financial instability, and don’t have the flexibility to cut back when they’re perhaps barely making ends meet. This is further supported by the fact that 52% of Americans with a HHI under $50K do not feel financially stable right now, compared to only 16% of those earning $100K or more.

“While tariffs are a complex concept, more than three quarters (77%) of Americans say they know what a tariff is — likely because they’ve been a major focus in recent economic discourse,” said Courtney Alev, consumer financial advocate at Credit Karma. Imposed and pledged tariffs come at a time when consumers are grappling with an elevated cost of living, so we’re seeing many people take precautions to protect their finances in anticipation of potential price increases for certain consumer goods. For those who are concerned about their finances right now, focus on what you can control. Cut back spending where you can, contribute to an emergency savings fund, and if you’re able to, pay down any debt you may have — starting with your highest interest debt first.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Credit Karma from February 27, 2025 to March 11, 2025 among 2,074 adults ages 18 and older.   

When TikTok exploded in popularity during the pandemic, many Americans started posting and consuming content around choreographed dances, baking bread and “get ready with me” videos. But over time, social media platforms like TikTok, Instagram and YouTube have become go-to destinations young people turn to for information about more serious topics like mental health, foreign affairs and financial advice. 

According to a recent study conducted by Qualtrics on behalf of Intuit Credit Karma, 77% of Gen Z and 61% of millennials actively seek financial advice or information online or through social media platforms, with a majority of Gen Z seeking this information on YouTube (71%), Instagram (50%) and TikTok (49%). And, millennials mainly seek this kind of information and advice on YouTube (67%), Facebook (61%) and Instagram (43%). 

Here is a breakdown of the top online platforms Gen Z and millennials turn to for information and financial advice: 

*Among respondents who actively seek financial advice online/from social media 

We know where they’re turning, but what type of personal finance advice are young people seeking online? Here’s a look at the topics Gen Z and millennials have sought out advice for on social media or online: 

*Among respondents who actively seek financial advice online/from social media 

FinTok drives a mixed bag of experiences 

It’s one thing to ingest financial advice on social media, but the stakes become much higher when taking action on said information. According to the study, 60% of Gen Z and 54% of millennials have acted on financial advice they received online or on social media, and interestingly, men tend to be more trusting than women. Nearly half (48%) of American men have acted on financial advice they got online or on social media, compared to 29% of women. 

For many young people, doing so has served them well. In fact, 67% of Gen Z and 60% of millennials say they’ve improved their financial situations after taking financial advice they received online or on social media, and similarly, 64% of Gen Z and 63% of millennials say that the financial advice they received from an influencer on social media made a positive impact on their lives. It’s possible that those who have struck luck participating in the FinTok movement are also doing their due diligence. Roughly three-quarters of Gen Z (72%) and millennials (74%) say that they research and validate financial advice they receive on social media or online before taking any action. 

However, the FinTok movement hasn’t treated everyone equally. For 39% of Gen Z and one-third (33%) of millennials – they say they will never take financial advice from social media or online ever again. Why so? Not only have 40% of Gen Z and 30% of millennials made poor financial decisions or mistakes based on information they received on social media or online, but a whopping 37% of Gen Z and a quarter (25%) of millennials admit they have gotten into trouble (i.e. IRS audit) after taking action on financial advice from social media or online. It’s no surprise then that 43% of Gen Z and one-third (33%) of millennials say doing so has negatively impacted their lives. 

Social media can be a hotbed for scams 

As scams become more prevalent and scammers become more sophisticated with their tactics, social media users could be easy targets. In fact, a quarter of Gen Z (25%) and roughly a quarter (23%) of millennials say they’ve been scammed by a bad actor portraying to offer financial advice or guidance on social media or online. And, among those who have been scammed, a majority of Gen Z (77%) and millennials (72%) say that it has negatively impacted their financial standing. 

Family, friends & financial institutions remain trusted sources 

No matter how trusting young people are of social media and the internet when it comes to their finances, many still prioritize their inner circles and financial institutions as their most trusted sources for financial advice. 

Here is a breakdown of those that young Americans trust the most when it comes to seeking out financial advice of information: 

“While social media platforms, and the internet at large, offer easy access to a ton of useful information people can adopt in their day-to-day lives, consumers should always do their research and verify the information they find online before taking action, especially when it comes to their finances,” said Courtney Alev, consumer financial advocate at Credit Karma. “As our study shows, there are a lot of bad actors and information out there that can end up causing a lot of harm to peoples’ financial lives, so it’s imperative that consumers do their due diligence. It’s also important to remember how personal “personal finance” is. No two people have the exact same financial profile or situation, so seeking out generic, one-size-fits-all financial advice online often isn’t going to be all that useful, generally speaking. In fact, almost half (45%) of respondents from our study admit that online financial advice is typically too generic or doesn’t apply to their unique financial situations. It’s important for consumers to keep that top of mind when consuming financial content online.”

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between September 30, 2024 and October 9, 2024 among 1,510 adults ages 18 and older. 

The rise of sports betting has made placing bets easier than ever, but the hidden cost of this convenience – both financial and emotional – is far reaching. Factor in major events like the Super Bowl and March Madness, and what starts as a friendly wager can quickly spiral into a dangerous cycle of gambling and debt. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma among U.S. adults ages 18 and older who engage in sports betting, or have a partner who engages in sports betting, nearly a quarter (22%) say sports betting has caused financial hardship and emotional distress for themselves and their families. When asked just to partners of sports bettors, this increases to 27%, indicating that typically feel the toll more. 

The most common types of financial hardship this camp of people and their families face include depleted savings (26%), struggles to afford basic necessities (21%), missed or late payments on important bills (20%), decreased credit score (19%) and having to take out payday loans or cash advances (18%) and maxed out credit cards (18%). In many cases, these numbers increase when asked just to partners of sports bettors, and a whopping 23% of partners say they’ve had to pull from their child(ren)’s college fund. And, roughly one in six sports bettors (17%) say they are at risk of bankruptcy. 

The most common emotional stressors faced by sports bettors and partners of sports bettors include mental health issues (48%), erosion of trust (24%), alcoholism and drug use (20%), lack of a relationship with children (18%) and family estrangement (16%). Sadly, we found that roughly one in six partners of sports bettors (16%) deal with abuse, whether it be physical, verbal or emotional. 

For better or for worse? 

Partners of those who engage in sports betting are often left carrying the burden of their partner’s decisions. More than a quarter (29%) of partners of bettors say that their partner is addicted to sports betting, with 28% wishing sports betting was illegal so they could protect their finances. Partners of sports bettors have had to lose out on achieving key milestones in sacrifice of their partner’s vice. Those sacrifices include taking a vacation (28%), paying off debt (22%), achieving financial independence from parents/relatives (13%), being able to invest in the stock market (13%) and buying a home (13%). 

Their anxieties stretch far beyond their finances – 28% worry their children will be influenced by their partner to engage in sports betting. The sad reality is some partners are completely in the dark about their partner’s betting practices with more than one in five (22%) bettors admitting their partner and family aren’t even aware that they make sports bets, increasing to one-third (33%) of Gen Z bettors. 

It’s also clear that those who bet and those whose partners engage in sports betting do not see eye to eye when it comes to associated risks and opportunities. Unsurprisingly, partners of bettors are more risk averse with 21% saying sports betting is a huge financial risk, compared to 11% of bettors, and 31% of partners view it as throwing away money, compared to 12% of bettors. On the flip side, 40% of bettors see it as a way to make money, compared to 26% of partners and 24% of bettors see the opportunity to make a big sum of money, compared to 16% of partners. 

It’s no wonder partners of those who sports bet view betting as throwing away money, when you consider 10% estimate their partner spends anywhere from $3,000 to $10,000 each month on bets. It’s an even scarier situation for those with household incomes (HHI) less than $100K, 17% who estimate their partner spends this much per month on bets. 

Slippery slope: from hobby to addiction

Nearly a quarter (23%) of bettors admit to being addicted to sports betting, climbing to 37% of Gen Z bettors, and sadly 38% of those addicts have no plans to get help for their addiction. Why the unwillingness to seek help? For many betting addicts, it comes down to denial, excuses and desperation. More than one-third of bettors (35%) say they don’t plan to get help because they don’t think getting help is necessary, one-third (33%) view it as an opportunity to make money, roughly one in five (21%) say they plan to quit once they’re financially stable and roughly one in six (17%) believe they are one big win away from fixing everything. 

On a brighter note, half of sports betting addicts say they plan to get help for their addiction, whether that be through friends or family (41%), online resources or forums (35%), seeing a therapist or psychologist (34%), meeting with a financial advisor (24%) and in some cases checking in to a rehab facility (22%). However, the reasons for which they are seeking help are more grim. More than one-third of betting addicts (35%) are seeking help due to feelings of guilt and shame, followed by being at risk of losing their job / having already lost their job (30%), being at risk of losing their family (29%), grappling with stress-related health issues, such as stroke, high blood pressure or insomnia (29%) and the desire to live a more stable and healthy life (29%). 

What, when, why, how? 

What are sports bettors betting on these days? Football takes the lead (83%), followed by basketball (55%), major sporting events like the Super Bowl or March Madness (34%) and baseball (33%). However, these days, betting goes beyond sports. A quarter of bettors (25%) say they place bets on things other than sports, whether it be weather, politics or awards ceremonies. 

In most cases, bettors are engaging in sports betting weekly (35%), and in some cases daily (10%). To fund their gambling, sports bettors claim winnings from previous bets as their number one funding mechanism (39%), followed by dipping into savings (32%), using income from a side gig (24%) and swiping their credit cards (19%). 

What drives people to bet on sports? The number one reason is to make money (53%), followed closely by entertainment purposes (52%). Others say it enhances their sports-viewing experience (29%), and nearly a quarter (24%) are swayed by bonuses and incentives offered, whether it be in free bets or prizes for activity. 

“The explosion of online sports betting rakes in billions in revenue annually, in some cases, at the expense of peoples’ financial lives,” said Courtney Alev, consumer financial advocate at Credit Karma. “While it may be a harmless vice for many who engage in the act, others find themselves entangled in a dangerous cycle of gambling that could be financially catastrophic when succumbing to chasing losses or betting beyond their means. Not to mention that these losses often extend beyond just money: they can erode trust within families, lead to mounting debt, and destroy personal relationships. For those who find themselves in a precarious place as it relates to sports betting and gambling-related debt, the first step to recovery is acknowledging the issue and seeking help. Getting professional help is likely the best chance at taking control of unhealthy betting habits, and making a plan for how to get out of debt. Even if you don’t have a gambling problem, it’s good practice to set rules and guidelines for yourself to ensure you’re always in control of your spending.” 

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between January 29, 2024 and February  5, 2024 among 1,000 adults ages 18 and older who engage in sports betting or have a partner who engages in sports betting. 

January 27 marks the official opening of the IRS, but the “scaries” are in full effect as many Americans dread filing, and for some, their looming tax bill. While plenty of Americans wait until the last minute to file, many taxpayers eagerly await their refund out of necessity. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 30% of American taxpayers say the thought of filing their taxes makes them want to cry, increasing to 40% of Gen Z and self-employed filers. At what lengths would young people go to avoid filing their taxes? Nearly a quarter of Gen Z (23%) say they’d rather give up a paycheck, 18% of millennials would rather drive for 20 hours straight, and taking a vow of celibacy for one year takes greater preference for 16% of Gen Z and 15% of millennials. Further evidenced by the admission that filing their taxes causes them more stress than paying their taxes, which is the case for 45% of Gen Z and 46% of self-employed taxpayers. 

Filling fears aside, tax refunds carry a lot of importance in Americans’ financial lives, with 37% dependent on their refund to make ends meet, rising to 50% of millennials. Of those who depend on their refund to make ends meet, nearly half (45%) say it’s because of the rising cost of living and necessities (i.e. housing, groceries). Others point to inflation (41%), living paycheck to paycheck (37%) and depleted savings (21%). For millennials, their refund dependencies stem from debt – 26% say they’ve maxed out their credit cards and 23% say they need their refund to pay down high interest debt. And for some of Gen Z, it comes down to income struggles, whether they’ve lost their job or had their hours cut at work (both 18%). 

Whatever their refund dependency may be, one-third (33%) of American taxpayers say they would pay a fee, or plan to pay a fee, to access their tax refund early, climbing to 51% of millennials, 43% of Gen Z and 42% of self-employed Americans. 

Buried in debt: Tax refunds become a lifeline for Americans

While 27% of American taxpayers plan to use their refund to splurge on non-essentials (i.e. clothes, travel), nearly half (47%) plan to use their refund to pay down debt, which is the case for 59% of millennials. And, these aren’t measly balances Americans are carrying, in fact, more than one-in-five (22%) Americans expect to have $10k+ in debt heading into tax season, climbing to 28% of Gen X. 

Debt takes form in many different ways for American taxpayers, mainly credit card debt which 56% of Americans have (61% of millennials), personal loan debt (32% of Americans; 38% of millennials) and medical debt (22%). Yet, for Gen Z, their biggest debt woes stem from student loans, which 37% have outstanding debt for heading into tax season. In fact, roughly one-third (32%) of Gen Z say they’d be less dependent on their tax refund if they didn’t have student loan debt. 

Saving money is top of mind for those expecting a refund 

Of those who expect to get a tax refund, 40% plan to put it into savings, and for good reason. For 38% of Americans, their savings strategy comes from wanting to be prepared for unexpected expenses (i.e. car repair, medical bills), while another 38% just don’t have a need to spend it and would rather just build their savings. However, millennials may have less of a choice, with 38% admitting that they’re trying to rebuild their savings since depleting it this past year. 

Sans refund, tax bills spell more debt for young Americans

Refund usage strategies are a moot point for the roughly half (49%) of taxpayers who expect to owe the IRS this year. More than a quarter (27%) of taxpayers are worried they won’t be able to afford their tax bill this year, which is the case for 36% of self-employed Americans. For Gen Z, fears around tax bill affordability means more debt as 40% expect to take on debt to pay their tax bill. However, the number one way Americans plan to pay their tax bill is by dipping into their savings account (44%). 

Those who expect to owe on their taxes aren’t the only ones missing out on refunds this year. Nearly a quarter of American taxpayers (24%) expect their tax refund to be withheld due to being delinquent on federal debts (i.e., student loans, taxes, child support), rising to 35% of Gen Z and 34% of millennials. 

Tax stressors heighten for Gen Z and self-employed Americans 

It’s a natural tendency for humans to put off undesirable tasks, especially if they fear what’s around the corner, and filing taxes is no exception. Of Gen Z Americans who put off filing their taxes until the last minute, some reasons include not wanting to know what they owe (26%) and the thinking that waiting to file improves their chances of not being audited (25%). That last fear could have been influenced by the 40% of Gen Z taxpayers who seek out tax filing information and tips from social media. Gen Z taxpayers also appear to have little confidence when it comes to filing correctly, which could be adding to their procrastination. Roughly a quarter (26%) say one of their biggest concerns going into tax season is making a mistake on their tax return, falling victim to tax fraud or tax scams (22%) and not getting their maximum refund due to the mistakes they made on their return (16%). 

For self-employed taxpayers, their filing procrastination has more to do with the complexities of their job or source of income. A little over two-fifths (44%) of self-employed taxpayers say they put off filing because their tax situation is complicated and requires more time to gather relevant information, while 18% fear they won’t be able to pay their tax bill on time. 

American parents rely on the child tax credit (CTC) 

One-third (33%) of qualifying American parents plan to claim the 2024 child tax credit on their tax return this year, as more than half (55%) depend on it to make ends meet for their family. Their dependency has likely grown since the pandemic, with 55% saying their financial situation has worsened since the pandemic-era expanded child tax credit expired, rising to 64% of Gen X. 

“Tax season evokes different emotions for different people, oftentimes depending on their financial situation,” said Courtney Alev, consumer financial advocate at Credit Karma. “For many American taxpayers, it’s a highly anticipated time when they receive their biggest windfall of the year, which they rely on to make ends meet. For others, it drums up stress and dread due to having more complicated tax situations, fear they will make mistakes when filing, or wanting to prolong facing a tax bill they may not be able to afford. Whether you’re expecting a refund this year or you think you might owe money, my number one tip is to make a plan and leverage the plethora of online resources and tools that can help you do things like estimate how much you might owe or receive, as well as ways to access your refund early, at no cost.”

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on December 20, 2024 to January 4, 2025 among 1,000 adults ages 18 and older who plan to file their taxes this tax season.   

Adulting is hard. It brings forth new roles and responsibilities that can feel like you’re carrying the weight of the world on your shoulders. Yet, it likely doesn’t compare to the many Americans who shoulder double the burden – providing caregiving and financial support to both their child(ren) and parents/relatives, also commonly known as the sandwich generation. 

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma among U.S. adults ages 18 and older who currently provide financial support to their child(ren) and parents/relatives, 52% feel disadvantaged financially because of the financial support they provide to multiple family members, increasing to 61% of those who are financially supporting adult children over the age of 18. For these financially disadvantaged Americans, their most common sacrifice has been their inability to save money (60%), followed by forgoing vacations and buying things for themselves (both 40%), neglecting their physical and mental health (36%), and postponing saving for retirement and paying down debt (both 35%). 

Supporting multiple family members financially comes with a massive price tag, especially for the 66% of Americans who say they are the primary financial providers for their child(ren) and parents/relatives. How much are people willing to fork over to ensure their families are taken care of? Spending up to $3,000 each month on their child(ren) is the reality for 23% of people, while one-in-five (20%) spend up to $3,000 on their parents/relatives. 

The most common way Americans provide financial support to both their child(ren) and parents/relatives is by paying for necessities, such as groceries, rent and gas (59% for child(ren) and 51% for parents/relatives). 

Here is a full breakdown of the various ways Americans provide financial support to their child(ren) and parents/relatives: 

Supporting adult children exacerbates financial hardship and resentment 

Financially supporting multiple family members at once is a challenge in itself, but the financial burden caregivers face seems to heighten for those who financially support adult children over the age of 18. More than half (55%) of people who financially support their child(ren) and parents/relatives say it feels impossible to make any financial progress at this stage in their life, increasing to 62% of those who support a child(ren) over 18, compared to 47% of those who support child(ren) 18 or younger. The same can be said for how this situation makes people feel – 44% say they feel resentful about their current financial obligations and the impact that supporting their family has on their own finances, increasing to 48% of those who support child(ren) over 18, compared to 40% of those who support child(ren) 18 or younger. Regardless of how they feel, 69% say they feel obligated to support their family financially. 

Bye-bye retirement 

While financially supporting multiple family members could impact various aspects of people’s ability to make financial progress, one implication may be more dire than others – retirement, which nearly a quarter (23%) of respondents aren’t currently saving for. Of those not currently saving for their future, 59% say retirement feels completely out of reach, and many have had to pull from their retirement savings to financially support their family (47%), while 44% have gone as far to completely deplete their retirement savings to do so. It’s no wonder that 56% of these people expect to work late into life, and one-third (33%) will have to depend on their child(ren) to financially support them as they age. 

Quality of life takes a hit, and relationships suffer 

The toll it takes to provide expansive financial support to multiple family members goes way beyond peoples’ finances – it’s impacting their quality of life. Nearly half (47%) say their quality of life has suffered from having to financially support their family, a figure that rises to 52% among those supporting adult children. Additionally, half (50%) say it also prevents them from living the life they want to live, increasing to 56% of those financially supporting adult children. Not being able to live the life they want could stem from life-changing sacrifices they’ve had to make, including the 43% of those who gave up their careers to be able to care for and support their family members. 

The constant state of stress that 52% of people in this situation are in due to the financial pressures they face could be hindering their personal relationships. Nearly half (47%) say that financially supporting their family has put a strain on their personal relationships (i.e. romantic, friendships), increasing to 52% of those financially supporting adult children. Even when putting others aside, self care, or the lack of, is another sacrifice family caregivers have had to make. Roughly a quarter (26%) of those who support multiple family members say they only have 1-5 hours a week to focus on themselves and their needs, while one-in-nine (11%) report having zero time for themselves beyond sleeping at night. 

The onus these Americans carry has 40% of them regretting not starting a family sooner to avoid the overlap in financially supporting and caring for both their child(ren) and parents/relatives. 

Live-in parents complicate things further 

About half (51%) of Americans who currently provide financial support to both their children and parents/relatives also have their parents/relatives living with them full-time. As a result, 30% of people say their relationship with their partner has suffered, and a quarter (25%) admit the same about their relationship with their kids. In fact, 44% are concerned their child(ren) isn’t getting enough of their attention due to everything they are juggling. 

And, in many cases, sharing a roof with parents or relatives doesn’t necessarily alleviate the financial burden, with about a quarter (26%) saying they still have to pay for additional at-home care support, such as in-home elder care. 

What’s mine is yours: Children face similar fate as their parents

What may keep parents up at night is the fear that they’ll be passing down their current financial burden to their own children. Nearly half (47%) say they’ve had, or will have to make sacrifices towards their children due to the financial support they provide their parents/relatives, whether that’s being unable to help with education costs or helping them pay for their wedding. 

Another 47% are worried that they will pass along their financial burdens to their children, with half (51%) wishing their own parents/relatives would have been more open and honest about their financial situation and needs. This has many parents mindful about not making the same mistakes their parents did – 52% are having, or plan to have discussions with their child(ren) about the financial support and implications they may face when they are their age. 

“While not a new circumstance, America’s sandwich generation may be growing in numbers as more people prolong starting families, life expectancy has increased over recent decades, and ‘failure to launch’ becomes the status quo for a number of young adults,” said Courtney Alev, consumer financial advocate at Credit Karma. “The financial burden this camp of people faces is undeniable, and in many cases, hinders their ability to achieve financial milestones such as retirement. And, it’s not just their wallets taking a hit — members of the sandwich generation also report experiencing a lower quality of life, dashed career aspirations and suffering relationships with friends, romantic partners and even their own children. We also know from our study that many parents worry about passing down their financial burdens to their children, and while perhaps inevitable in some cases, parents should have honest conversations with their children now about the financial support needs and implications they may face when they are their age. That may not make their children’s reality any easier, but it should help them plan accordingly to the best of their abilities.” 

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between November 19, 2024 and December 6, 2024 among 997 adults ages 18 and older who currently provide financial support to their child(ren) and parents/relatives. 

Time and time again, social media platforms drive spending sprees among America’s youth. While rightful blame often points to sophisticated algorithms and seamless, few-click checkout experiences, the lure may also stem from culture – what’s hot right now, and who is promoting it? 

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,092 U.S. adults ages 18 and older, 48% of Gen Z and 40% of millennials say social media causes them to spend money they do not have. While this might seem like old news, it’s the more recent financial implications this trend may be having on young Americans’ finances that makes it timely. 

A majority of Gen Z (86%) and millennials (77%) are leaving 2024 with financial regrets, and both generations’ top financial regrets include not saving money (36% of Gen Z and 33% of millennials) and overspending (41% of Gen Z and 27% of millennials). 

Aesthetic-fueled spending 

Various fashion and lifestyle trends have emerged and trended on social media this past year, influencing young Americans to open their wallets in pursuit of achieving their preferred aesthetic. According to the study, 69% of Gen Z and 58% of millennial social media users admit that social media trends have influenced them to spend money in 2024, with the top influential trend being “Old Money” – a fashion trend inspired by timeless, high-quality pieces, with less focus on brand logos, including tailored blazers, classic styles, etc – which has influenced 28% of Gen Z and 20% of millennial social media users to spend. 

Here is a full breakdown of the different social media trends and aesthetics that have influenced Gen Z and millennial social media users to spend money: 

Was it worth the hype? 

Social media’s influence on how consumers spend money would not be nearly as powerful without the influencers and celebrities who use these platforms to create content, and more often than not, push products. A majority of Gen Z (79%) and millennial (70%) social media users have made “hype purchases” in the past, and among them, 81% of Gen Z and 80% of millennials say they’ve regretted making such purchases. For the purposes of this study, “hype purchases” are defined as items/experiences that have gained popularity on social media, oftentimes because of an influencer or celebrity, that potentially result in consumers purchasing things they do not actually need. 

Here is a full breakdown of the types of hype purchases made among Gen Z and millennial social media users who have made hype purchases, and those they regret purchasing:

Social media habits in the new year 

As young Americans reflect on their 2024 spending habits, some plan to be more conscientious in the new year as it relates to their use of social media. A majority of Gen Z (90%) and millennials (88%) are planning to implement tactics to create healthier financial habits in 2025, including participating in a personal finance challenge (31% of Gen Z, 29% of millennials) – which often gain popularity on social media – whether that’s committing to shopping significantly less than they did the year prior or taking a more mindful approach to shopping – or going on a social media diet (25% of Gen Z, 17% of millennials), which entails using social media less, or not at all. 

“Credit Karma has conducted several studies this year that emphasize social media’s influence on consumers’ spending behaviors, whether they’re doom spending to cope with their emotions or booking travel after seeing other people’s vacations online,” said Courtney Alev, consumer financial advocate at Credit Karma. “Whatever the temptation may be, many different aspects of social media drive us to spend money, but it’s important to reflect on the purchases we’ve been influenced to make, and ask ourselves whether it was worth it or not. Trends come and go – and these days, at warp speed – so if you’re guilty of chasing down the latest and greatest product, trend or aesthetic, remember that it may have a short shelf life. Will you still get frequent use out of that expensive mob wife inspired leopard print coat next winter, or will you have moved on to a different style after one wear?” 

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from November 25-27, 2024, among 2,092 U.S. adults ages 18 and older, among whom 350 are Gen Z ages 18-27 and 707 are Millennials ages 28-43). The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

The new year symbolizes a fresh start, but for the countless Americans heading into 2025 with debt, that might be wishful thinking.

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,092 U.S. adults ages 18 and older, 70% of Americans have financial regrets from 2024, rising to 86% of Gen Z. The most common financial regret shared among Americans was not saving money (31%) – which was the case for 42% of those with an annual household income (HHI) of less than $50k and 36% of Gen Z – followed by overspending (25%). While 36% of Gen Z regret not saving in 2024, their most common financial regret is overspending (41%).

Admissions of overspending could signal debt troubles. In fact, half of Americans (51%) expect to have credit card debt heading into 2025, with roughly a quarter (24%) expecting to have $5k or more in debt, and roughly one-in-seven (15%) expect to have $10k or more.  

While excessive spending may be a common reason for Americans’ debt troubles, other reasons are likely more out of their control. In 2024, 67% of Americans experienced financial setbacks, including 75% of those with an annual HHI less than $50k, with the most common financial setbacks being unexpected expenses (24%), taking on debt (22%) and their income declined (20%). 

In many instances, women fared worse than men. This year, more than a quarter (27%) of women say a financial setback they faced was unexpected expenses (v. 22% of men), a quarter (25%) of women cite taking on debt (v. 20% of men), 22% of women cite their income declining (v. 17% of men), 22% of women cite not being able to afford necessities (v. 13% of men), 18% of women cite falling behind on payment obligations (v. 12% of men) and 15% of women cite having to deprioritize certain debt payments to accommodate others (v. 9% of men). 

For many Americans, 2024 will leave much to be desired in terms of financial progress. More than half (54%) of Americans say their financial situation worsened in 2024 and 69% had to put off major financial milestones. 

2025 may be the year of financial accountability

Financial progress doesn’t happen overnight, and Americans’ financial journey will vary in the new year. For instance, it might be a shakier start for the roughly one-in-seven (14%) Americans who expect to have $0 in savings heading into the new year, rising to 30% of those with an annual HHI of less than $50k. While the 66% of Americans who say they established money-saving habits in 2024 that they will continue to practice in 2025, might have an easier path forward. 

Regardless, most Americans have hesitations entering the new year. More than three quarters (79%) of Americans say they have financial concerns heading into 2025, the most common being the state of the U.S. economy (e.g. cost of living, inflation) (39%), followed by not being able to save money (35%, 45% for those with annual HHI less than $50k), not having an emergency savings fund (29%, 41% for those with annual HHI less than $50k), and facing unexpected expenses (e.g. medical procedure, car breaking down) (29%). Other financial concerns some Americans have include not having enough money saved for retirement (24%), not being able to climb out of debt (22%) and not being able to afford necessities (21%, 31% for those with annual HHI less than $50k). 

Financial concerns aside, Americans are not losing sight of their financial goals, and healthier financial habits are on many people’s New Year’s resolution lists. In fact, 69% of Americans say they have clearly defined personal finance goals that they plan to achieve in 2025. 

Before consumers build new smart money habits, they’ll look to break the bad ones that did a disservice to their wallets in 2024. Nearly three quarters (73%) of Americans say they are committed to breaking bad financial habits in 2025, the top one being not saving money (34%, 40% of Gen Z), followed by impulse buying (27%, 37% of Gen Z) and not having an emergency fund (26%). 

Out with the old, in with the new. The top tactic Americans plan to practice to create healthier financial habits in 2025 is making a budget and sticking to it (44%), followed by focusing on improving their credit (30%) and finding healthier mechanisms than spending to cope with emotions (23%, 37% of Gen Z). 

“It’s fairly common to enter a new year with financial regrets,” said Courtney Alev, consumer financial advocate at Credit Karma. “Looking back, there’s always going to be better choices we could have made or purchases we didn’t need, but it’s not productive to continuously dwell on the bad: instead, channel those feelings of regret into motivation to commit to better financial habits in the new year. In fact, our study shows that nearly three quarters of Americans are committed to breaking bad financial habits in 2025. What you’ll likely find is that various people in your life share the same motivation for improving their finances. Become accountability partners and make a plan for how you’re going to get your finances back on track.” 

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from November 25-27, 2024, among 2,092 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com. 

Elevated stress levels among Americans are putting a damper on their finances as spending money becomes a key coping mechanism. 

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma, 60% of Americans are concerned with the current state of the world and economy, and the top worries among this group include the cost of living (55%), inflation (43%) and the upcoming presidential election (28%). Other worries burdening Americans include unaffordable housing (21%), their wages not keeping up with current costs (21%) and foreign affairs such as wars (14%). 

Of those who are concerned about the current state of the world and economy, 43% say not having enough money to afford necessities like food, clothing and rent/mortgage worries them the most about how they could feel the impact, followed by having their savings depleted (31%), their retirement funds taking a hit (28%) and not being able to spend money on things that bring them happiness (28%). 

Uneasy feelings have festered for the past year with 71% of Americans admitting they are more worried about the state of the world now than they were a year ago, and 61% feel the same about the economy. Uncertainty can take a toll on people’s mental health, perhaps driving unhealthy coping mechanisms. In fact, 63% of Americans say that the current state of the world and economy gives them anxiety about their finances, impacting how 59% of Americans spend their money. 

To cope with stress, more than a quarter (27%) of Americans are doom spending, and 40% say they doom spend more now than they did a year ago. For the purposes of this study, “doom spending” is defined as spending money despite concerns about the economy and foreign affairs. This phenomenon is most common among younger generations (37% of Gen Z and 39% of millennials), validated by their instinct to spend money to cope with their emotions, including anxiety, uncertainty and depression (47% of Gen Z and 42% of millennials). 

Instead of channeling concern into responsible financial management, more than one-third (36%) of Americans say they can’t rationalize saving money due to feelings of uncertainty about the world and economy, increasing to 47% of Gen Z and 43% of millennials. This could be why nearly one-in-five (19%) Americans have $0 in savings right now. Sadly, this has 44% of Americans feeling pessimistic about their financial future, and another 43% have given up on achieving certain financial milestones because they feel too out of reach. The primary financial goals that feel out of reach for Americans, include saving money (42%), paying off debt (26%) and being able to upgrade their living situations (26%). 

Young people are chronically online, and it’s taking a toll on their finances 

More than half (53%) of Americans say they feel like they’re constantly receiving bad news online. Among them, 44% admit to being chronically online, which is the case for a whopping 70% of Gen Z and 52% of millennials. For the purposes of this study, being chronically online entails spending a large amount of time online and prioritizing internet culture over other aspects of life. 

The top reason people spend money to cope with their emotions is because it helps relieve their stress (50%), so it’s no wonder more than half (53%) of Gen Z and 49% of millennials say that receiving bad news online/social media drives them to stress spend. Interestingly, men are twice as likely than women to stress spend when receiving bad news online (48% versus 23%). 

While nearly half (49%) of Americans prioritize being online and on social media in order to stay informed on what is happening in the world, roughly one-third (34%) recognize that they’d spend less money if they cut back on their screen time. That awareness has 67% of Gen Z and 58% of millennials planning to spend less time online/social media to help with their stress levels. 

What will 2025 bring? 

As we gear up for a new presidency, and near the end of the year, Americans have mixed feelings on what to expect when it comes to the economy in 2025. For one-in-10 (10%) Americans, that entails having zero feelings of optimism about next year’s economy. Although, interestingly, some of the things Americans are most and least optimistic for in the new year, overlap. For instance, one in five (20%) Americans are most optimistic about inflation returning to normal, while 14% are least optimistic about it. And, while 11% feel most optimistic about the general economic effects they’ll experience from the upcoming election, 13% are feeling the least optimistic about the impact. 

“It’s been a tumultuous year for many Americans, and with the election right around the corner, politics can often add to people’s stress levels,” said Courtney Alev, consumer financial advocate at Credit Karma. “Time and time again, we see people spending money to cope with their emotions and relieve stress, and while it might result in short-term relief, it can have long-term negative implications on their finances. Young consumers, who spend much of their time online and on social media are especially susceptible to the impact that doom scrolling can have on their wallets. Social media helps people stay informed, but it can also cause undue stress depending on the type of content people consume. Our study found that young Americans plan to make an effort to spend less time online to help with their stress levels, but for those who struggle to cut down on their screen time, it’s important to rely on healthier channels than spending money to relieve stress, whether that be exercise, meditation or taking up a new hobby.” 

Methodology

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between October 25, 2024 and October 29, 2024 among 1,001 adults ages 18 and older. 

The verdict is typically split regarding how people feel during the holiday season. For many, it’s a joyful time with family and friends, but for others, it can feel overwhelming, especially when it comes to money and finances. 

According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, nearly half of Americans (49%) feel stressed about affording the holidays this year. While the holidays are generally an expensive time, 61% of consumers say that inflation and higher costs have significantly impacted their holiday spending budgets. Yet, interestingly, the latest rate cut from the Fed has Americans feeling more comfortable swiping their credit cards as a quarter (25%) say they will spend more on holiday shopping now that interest rates have dropped (45% of Gen Z, 39% of millennials). Regardless, 44% of people feel pressure to spend more than they can afford this holiday season, climbing to 53% of Gen Z and millennials. 

Some people are so stressed that they wish the holidays were canceled this year because of the cost (29%), which is especially the case for young people (38% of Gen Z and 37% of millennials). These uneasy feelings could stem from the debt hanging over Americans’ heads as they enter an already pricey time of the year. In fact, 43% of consumers have existing debt heading into this holiday season, and a whopping one-third (33%) are carrying upwards of $5,000 in debt. It’s no wonder that nearly half of consumers (49%) feel the most stressed about their finances during the holiday season. 

The season of YOLO spending 

Tis the season of targeted ads and savvy sales tactics making it all too easy to get carried away when holiday shopping. More than a quarter of consumers (27%) say social media drives them to overspend during the holidays – which is especially the case for Gen Z (46%) and millennials (37%) – and 40% say that holiday sales encourage them to spend money they don’t have on things they don’t need. A prime instance of that is the act of “spaving”: spending more to save more, i.e. adding an extra item to an online shopping cart to get free shipping. In fact, 40% of Americans say they are more likely to “spave” while holiday shopping, jumping to 49% of Gen Z and 51% of millennials. 

Not only do consumers feel obligated to buy gifts for other people, but they’re also subject to temptation to buy for themselves. More than one-third of consumers (37%) say they typically spend money on themselves when holiday shopping for others, especially Gen Z and millennials (47%). 

Some people have given up on trying to be fiscally responsible during the holiday season. In fact one-in-five Americans (21%) say they don’t care about making good financial decisions during the holidays, especially young people (37% of Gen Z and 30% of millennials). This is validated by the fact that during the holiday season, some consumers don’t budget (26%), don’t keep track of their spending (20%) and spend what they want, and deal with the consequences later (25%). 

Savvy shoppers practice mindful spending 

The rules of responsible spending go out the window for many consumers during the holiday season, yet others have a system in place to make sure they don’t stretch their wallets too thin. An impressive 28% of people claim they make a budget during the holiday season and always stick to it. In other instances, it’s all about preparation – 44% of Americans say they save money throughout the year in preparation for holiday spending, while roughly one-third (32%) say they shop throughout the year so they don’t spend all at once. And, some go as far to buy gifts on sale/clearance right after the holidays come to a close for next year (19%). Money reasons aside, 58% of consumers are being cautious of overconsumption this holiday season. 

Gifts and groceries drive up balances and deplete savings 

Of the 49% of Americans who plan to take on debt this holiday season, they point to gifts for others (61%), groceries for holiday meals (44%) and necessities like rent and bills (29%) as primary items they’ll go into debt for. 

Those who plan to spend money this holiday season will pay with cash (49%), charge their credit cards (42%), pull from their savings (26%); (34% of Gen Z), use credit card rewards (25%) and pull from a dedicated savings account for holiday spending (14%). And, nearly one-in-six consumers (16%) plan to open a new credit card, whether it be a rewards card or retail card, specifically for holiday shopping, which is the case for 30% of Gen Z and 27% of millennials.  

Sacrifices and compromises will be made 

More than a quarter of Americans (27%) will have to skip holiday traditions this year due to cost, climbing to 35% of Gen Z and 36% of millennials. Of those, more than half (53%) say this is the first year they’ve had to skip a holiday tradition because of money. In an effort to save money on the holidays, nearly one-third of consumers (30%) plan to shop at discount stores, while others plan to make DIY gifts (e.g. baked goods, knitting, art) (20%), have honest conversations with friends and family about what they can afford (19%), coordinate a git exchange that only requires each person to buy one gift (17%), skip exchanging gifts (16%) and shopping second-hand (15%). 

Parents with young children may face challenging conversations around gifting expectations as a quarter of parents (25%) with kids under 18 say they are not giving gifts to their kids this season due to their financial situation. Yet, some are less willing to broach the topic with more than half of parents (55%) saying they’d rather take on debt to buy gifts for their children than tell them they can’t afford them. Others will also take the opportunity to have honest conversations with their kids about money – 56% of parents will set financial boundaries with their kids around gift giving and 51% will use the holidays as an opportunity to teach their kids about money. 

Student loan borrowers face affordability challenges 

Student loan borrowers face an especially challenging holiday season with 46% of borrowers saying they cannot afford the holidays this year because of their student loan payments, while another 45% cannot afford to travel home. Some borrowers will prioritize the holidays over their finances with 47% saying they will pause making payments toward their student loans so they can enjoy the holidays. 

“Time and time again, the holidays are a polarizing time of the year for people, bringing forth a range of emotions from excitement and community to anxiety and loneliness,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Oftentimes, these feelings of unrest stem from money worries — our study found that more than a third of Americans (37%) say the cost of the holidays negatively impacts their mental health. For those who are stressing about the cost of the holidays this year, you’re not alone. Talk to your family and friends about what you can and cannot afford, or consider setting up a gift exchange that only requires each participant to give just one gift. And remember, the true purpose of the holiday season is to spend time with your loved ones, not to exchange gifts.”

Methodology 

This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between September 20, 2024 and September 29, 2024 among 2,003 adults ages 18 and older. 

Generation Z has reshaped various societal norms, which entails redefining what’s in and what’s out. The latest workforce trend being embraced by today’s most influential generation is blue-collar career paths. As the promise of a four-year degree falls short, and the cost to receive a college degree continues to climb, young Americans are making blue-collar jobs cool again. 

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,091 U.S. adults ages 18 and older, nearly half of Americans (49%) believe that American society views trade jobs more negatively than corporate jobs – a belief most pronounced among older generations (61% of baby boomers ages 60-78 and 54% of Gen X ages 44-59 versus 39% of millennials ages 28-43 and 36% of Gen Z ages 18-27). While the stigma associated with trade work – also known as blue-collar – is present, perceptions are starting to shift, and young Americans are leading the charge. 

A majority (78%) of Americans say they’ve noticed a recent growing interest from young adults to pursue trade careers, possibly supported by the fact that roughly one-in-five Americans (21%) view trade jobs more positively than corporate jobs, especially the case for millennials (31%) and Gen Z (23%). In fact, 15% of Americans have considered pursuing vocational training or trade school, and that jumps to 27% of Gen Zers and 16% of those who currently work a corporate job. 

Nearly a third (32%) of employed Americans currently work in the trades, including 38% of Gen Z, 34% of millennials, 30% of Gen X and 28% of Baby Boomers. And nearly a quarter (23%) of Americans who don’t currently do trade work say they plan to get into the profession in the future, which jumps to 50% of Gen Z and 42% of millennials. 

What’s so great about trade work? 

The top factor that influenced trade workers to pursue a trade career is work-life balance (43%), followed by job security and job availability (both 42%). On the note of job security, the advent of AI, specifically generative AI (GenAI), may have more people on alert. With the emergence of AI, 66% of Americans believe trade professionals have more job security than corporate professionals – a belief commonly held by both trade workers (71%) and corporate ones (70%). 

Social media might also play a role in the resurgence of interest in trade jobs. One in 10 (10%) trade workers say that seeing skilled-trade workers on social media influenced their decision to pursue a trade career, and another one in 10 say seeing stories on social media from people with corporate jobs who are struggling to make ends meet also impacted their decision. 

The promise of a 4-year degree is broken 

It’s difficult to imagine a resurgence in blue-collar work without the acknowledgement of the fraught nature of the higher education system in the United States, which has many people wondering if the expense is worth it. Nearly half of Americans (45%) don’t see the value in a 4-year college degree, and that remains true for more than half of Gen Z (52%). In a similar vein, a majority of Americans (64%) do not think taking on student loan debt is worth the return on investment of a college education, and more than three-quarters of Americans (77%) think the argument that you need to go to college to have a successful career is outdated. 

While more than 3 in 5 Americans (61%) are under the impression that in most cases, getting a college degree will result in a well-paying job, 22% of those who went to a 4-year college are not making as much money as they thought they would, having attended one. The latter is felt among nearly a quarter (23%) of corporate workers. 

The crippling nature of student loan debt is likely why more than half (54%) of those who currently have student loans, or have had them in the past, regret their decision to take on debt for a degree. Luckily, only 12% of Americans who attend a 4-year college, or attended one in the past, are dissatisfied with their decision to do so, yet, that increases to roughly one-in-five (21%) Gen Zers. 

Stigmas drive unawareness 

Over time, four-year universities have been idolized as the true path to success, especially among highly educated parents who expect their kids to follow in their footsteps. This could be why trade school and vocational training programs have an awareness problem in the U.S. Of those who attended or are currently attending a 4-year college, 19% were not aware there were alternative education paths they could have taken for school/career, and that jumps to 33% of Gen Z and 29% of millennials. And, roughly one in 11 (9%) say they were forced by their parents to attend a 4-year college, which is the case for 15% of Gen Z and 12% of millennials. Interestingly, 16% of trade workers also say they were forced by their parents to attend a 4-year college, which could be a hard pill for them to swallow if they had to take on debt to do so. 

Entrepreneurship flourishes in trades 

Stigmas aside, most Americans are aware of the entrepreneurial opportunities that exist for blue-collar workers. Roughly three quarters (76%) of Americans believe trade professionals have a better chance at becoming a business owner/entrepreneur than corporate professionals – and they’re not wrong. Trade workers (20%) are almost twice as likely as corporate workers (11%) to be self-employed. And the pay is not half bad either – 30% of trade workers make $100k+ in annual gross income. 

One is not superior to the other 

We’re seeing a split mindset when it comes to how Americans view a four-year college education and the overall return on investment (ROI). Exactly half of Americans (50%) agree there is a higher ROI (i.e. career earnings compared to education cost) with a 4-year college than with a trade school, while another half disagree with this claim.

“Lately, there’s been a lot of warranted attention placed on the exorbitant cost associated with getting a four-year college degree, and healthy debate as to whether the return on investment is worth the expense,” said Courtney Alev, consumer financial advocate at Credit Karma. “The traditional four-year college path isn’t one-size-fits-all, and vocational and trade schools may offer an affordable path to well-paying, skilled trade jobs. It’s refreshing to see young adults taking notice and interest in these lines of work, especially considering how challenging it’s been for new grads to find white collar jobs. Whatever decisions consumers make about their education and career paths, they can rest easy knowing plenty of corporate and trade professionals alike are happy in their jobs. Our study found that a majority of trade workers (81%) and corporate workers (74%) say that if they were to re-enter the job market, they would still choose to pursue the same career path.”

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from August 1-5, 2024 among 2,091 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.