“The rising cost of groceries, which has significantly outpaced wage growth in recent years, is undeniably placing increasing financial pressure on households. This widening gap between living costs and stagnant wages calls for policies that address both inflation and income inequality,” said a spokesperson for the price-monitoring website.

This economic squeeze appears to have led to increased credit card usage, postponed life milestones, and shifting spending priorities. But, with strategic planning and informed decision-making, consumers can successfully navigate these challenges and improve their financial resilience.

While every generation has its own challenges—from “doomspending” members of Gen Z to baby boomers facing a housing crisis—the team behind the personal finance app Piere has released the results of a three-year analysis of 35,000 millennials’ spending habits. The app is an intelligent personal finance and money management tool that uncovers money hiding in plain sight, offering personalized financial plans and insights at your fingertips. 

We’ll take a closer look at how consumers are feeling and what can be done to set yourself up for success even in a tough economic environment. 

Millennials face the future with deep skepticism, survey finds

The Piere survey revealed that 59% of millennials have considered postponing major life events, such as weddings, home purchases, or starting families, due to financial challenges. “We’re witnessing in real-time how consumer behavior is profoundly shifting, as Americans navigate the complexities of rising costs and economic uncertainty,” says Yuval Shuminer, CEO of Piere. 

Shuminer is referring to a notable increase in credit card activity, especially among millennials. Piere’s survey found that nearly 40% of millennials report having increased their credit card usage in the last year to be able to manage daily expenses, and 20% say they’ve increased their credit card usage by more than $500 in the last year. 

With inflation on the rise again, it’s little wonder that consumers are increasingly relying on credit products to get by. A recent report from Bankrate showed that 59% of Americans would choose to put a $1,000 emergency on a credit card, for example. 

One factor contributing to this situation could be the fact that the federal minimum wage does not provide what many would consider a “living wage” in 2025—it was last updated in 2009, and stands at $7.25 per hour. While the study from PriceListo suggests a demand for policy changes to address this, Piere’s survey reveals deep skepticism among many Americans, showing that 83% of millennials do not expect the Trump administration to reduce the cost of living in the United States.

Despite challenges, millennials are prioritizing financial wellness

Shuminer of Piere is quick to point out that things today aren’t all doom and gloom. “Consumers are also prioritizing savings amidst increasing debt burdens,” she said in the news release.

The Piere survey showed that despite increased use of credit cards, millennials are working hard to build up their savings. While average monthly withdrawals from savings accounts have remained steady since 2022, the survey found that deposits have increased by 30%.

This tracks with the results of Bankrate’s emergency savings report in January, which found that 26% of millennials are prioritizing increasing their emergency funds. Another 27% are focusing on paying down debt, while the largest portion of respondents—39% of them—stated they are working on both at the same time.

The figures are similar across generations, with 35% of all respondents agreeing that they want to pay off debt and increase their savings simultaneously. 

“With more than one-third of Americans prioritizing both emergency savings and credit card debt, it underscores how many households are in the position of having both high-cost credit card debt and being under-saved for emergencies,” says Bankrate Chief Financial Analyst Greg McBride, CFA.

Savings rates remain high, helping to achieve these goals

While the recent uptick in inflation means we are unlikely to see the Federal Reserve decrease the federal funds rate any time soon, that’s actually good news for those hoping to maximize their savings potential while rates remain high. Banks utilize the fed funds rate to help determine the APY they’re willing to pay on savings products, and while rates on savings accounts did fall in 2024 following three substantial rate cuts by the Fed, we’re unlikely to see further cuts for a while yet.

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This means that yields on savings accounts and certificates of deposit (CDs) are still providing relatively strong rates of return. For example, while the national average savings rate is only 0.41%, there are some savings accounts offering up to 5.00% APY—over 10 times the average.

These rates can fluctuate at any time, however, leading many savers to seek savings vehicles that allow them to lock in high yields for an extended period of time. Many CDs offer rates of up to 4.50% APY and allow you to keep that rate for anywhere from 30 days to multiple years. This makes them an attractive option for motivated individuals who want to ensure their rate of return doesn’t fall any further.

The takeaway

While there’s no crystal ball to see what’s coming next or how potential new legislation or tariffs may impact Americans’ budgets, one thing seems clear—for every ounce of skepticism millennials may feel about the future, there’s an equal dose of tenacity driving them to find ways to succeed. 

Speaking to efforts to increase savings while paying off debt, Piere’s CEO Shuminer puts it this way: 

“This dual approach underscores the resilience of the American consumer, who is adapting to new financial realities while seeking value in every purchase,” she says.

Learn more about Piere’s studies at Piere.com