Marketing non-essential consumer products looks like becoming a lot tougher

MANY AMERICANS SEE their financial situation worsening in the future, leading to even everyday essentials becoming less affordable. Businesses who sell non-essential items are therefore likely to face strong headwinds as they try to market their products.

A new report suggests that although the new administration aims to "Make America more affordable," many consumers remain doubtful.

Instead of anticipating relief, consumers expect their financial struggles to intensify over the next four years due to inflation, debt, and rising living costs. A significant decline in positive emotions around money highlights a growing sense of hopelessness and economic anxiety, according to nudge's 2025 Global Financial Wellbeing Report.
  • The report reflects a 59% decline in financial optimism. Only 28% now feel hopeful about their finances, down from 68% last year.
  • 63% anticipate inflation will worsen their financial situation, making everyday essentials even less affordable.
  • 54% of Americans report increased stress due to debt.
With inflation fears, many are preparing to cut essential living costs

  • 46% fear rising energy costs, while 57% worry about food prices, leading to widespread concerns about basic living expenses.
  • The U.S. has the highest 'debt stress' globally, with one in 5 (20%) respondents feeling overwhelmed by their debts compared with the global average of 13%.
The report reveals a deep-seated lack of confidence in U.S. economic recovery, with many Americans unconvinced that government policies will lead to a meaningful reduction in financial strain. While financial literacy levels are consistent across global markets, Americans report higher levels of financial anxiety (37% in the US vs. 31% globally), with many worried they won't be able to maintain their standard of living.

Chronic financial stress is impacting mental and physical health

The research also highlights the profound toll financial stress is having on mental and physical health, reinforcing the long-term consequences of economic uncertainty:
  • 37% experience anxiety, while 27% report depression linked to money worries, signalling a mental health crisis driven by financial concerns.
  • 42% of Americans report financial stress affecting their mental health, with anxiety levels rising in correlation with economic instability.
  • 30% say financial stress keeps them awake at night, leading to sleep deprivation and compounding overall stress levels, while 16% link it to high blood pressure—underscoring the physical health consequences of prolonged financial hardship.
"Economic uncertainty is hitting Americans hard."  says Jeff Miller, Vice President US at nudge and Certified Financial Education Instructor. "Many are struggling to keep up with rising costs and financial obligations. Financial literacy is more crucial than ever, helping people navigate the effects of trade tariffs, healthcare funding cuts, and increased interest rates.

"Without the right financial education, many individuals may find themselves unable to make informed decisions that protect their financial wellbeing.

"Now is the time to prioritize financial education, equipping individuals with the knowledge to navigate economic uncertainty. Employers, policymakers, and individuals must work together to build financial resilience. Without proactive financial planning, many will continue to feel trapped in an ongoing cycle of economic struggle."

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