In a recent survey, our friends at Bankrate found that the American dream of financial security is slipping further out of reach for millions of Americans. Conducted in May with over 2,200 respondents, the survey highlighted a concerning trend: 77% of Americans reported not feeling completely financially comfortable in 2025, a slight increase from 75% in 2024 and 72% in 2023. This erosion is due to decades of economic dislocation, hyperinflation, and wage stagnation.
According to Sarah Foster, an analyst at Bankrate, the erosion of the American dream has been going on for years. Perhaps most important, she stressed that this issue is fundamentally a matter of economic instability. Today, most Americans think that to be financially comfortable, you have to make a lot of money. The survey revealed that 45% of adults surveyed believe in order to be financially secure you have to make $100,000 or more per year. Incredibly, 26% said an annual salary of $150,000 is required, with 16% claiming their floor is above $200,000.
“One major issue is that wages have been stagnant for a large majority of the population over that time, and prices continue to rise,” said Carolyn McClanahan, a certified financial planner. This sentiment is further amplified by the results of Bankrate’s monthly survey, which shows the ever-increasing financial burden on Americans’ households.
Today in 2023 even median household income is over $80,000. Most proponents believe this sum is not enough just to move the needle and stay ahead of soaring cost of living demands. Accelerated by high inflation and economic uncertainty, consumers’ purchasing power has been greatly diminished. Foster explained that financial security is not just about what people make. It takes a demand for smart saving and investment strategies. She stated, “You are able to cover your bills and everyday essentials but have money left over for eating out and vacations.”
The survey’s findings, 2020 versus 2021
Finances
This year’s financial outlook view is a complete reversal compared to recent years. Once upon a time, there was the idea that people could accomplish both—backyard barbeques and home ownership, and ultimately financial independence—on one income. Foster remarked, “There has long been this perception that we used to be in this golden age where you could own a home, a car, and get by on a single income—that is a bygone era.”
It’s complicated by external factors, such as former President Donald Trump’s tariffs. These tariffs were leading to further inflationary pressures. As Americans face higher prices and growing financial pressures, many find themselves struggling with an uncertain economic future.