Jan 11, 2026
A new survey from Credit Karma polled Americans about their top financial regrets in 2025 — and they paint a picture of the high cost of living in the U.S. today.
Nearly half of Americans say their finances worsened over the past year, with unexpected expenses upsetting their budgets in 28% of cases. The top three financial regrets reported include not saving enough, with 38% of respondents, impulse spending, at 28%, and having too much high-interest credit card debt, at 21%.
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However, some hope prevails: 45% of the respondents think that they can turn things around in 2026, and expect to meet their financial goals (1).
Here’s what you can do if you find yourself at the end of 2025 with financial regrets, including our top tips on avoiding financial missteps in 2026.
The economic challenges in 2025
A number of challenges stacked the deck against Americans’ household finances in 2025. For example, tariffs caused economic uncertainty and chaos in the markets in the early part of the year (2).
For everyday Americans, the effective tariff rate — effectively a tax — on imported goods rose to 11.2%, adding pressure to budgets already constrained by inflation, according to the Tax Foundation (3).
The inflation rate for 2025 hovered around 3% for most of the year, coming on top of increasing prices since 2020 (4). Finally, high interest rates have also strained consumer wallets. Personal loan rates, credit-card interest rates and mortgage rates have all climbed over the past few years, and are holding steady in spite of modest cuts from the Fed (5).
The Credit Karma survey found that 20% of Americans reported falling behind on these kinds of bills, including mortgages and credit cards. A further 19% were struggling to afford basic necessities like groceries. Most consumers (67%) said rising costs and other macroeconomic forces were to blame for their budget difficulties in 2025 (1).
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However, poor spending habits are also breaking budgets for some. A 2024 Bankrate survey found that more Americans are “doom spending,” or mindlessly spending as part of an unhealthy habit to cope with stress or anxiety. Almost half (44%) of credit card holders were carrying a balance month-to-month. At that time, 38% reported that they would be willing to go into debt for discretionary or fun purchases (6).
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How to make 2026 a successful year financially
So how can you find a way to boost your finances in 2026 — while still leaving some room in the budget for fun? First, it’s time to take a look at how you spent your money in 2025. Gather up your bank and credit-card statements (or look at your spending tracker app, if you have one), and break down your spending categories each month. This can give you a more realistic picture of where your money goes, and where you can afford to trim down expenses.
From there, you can consider:
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Right-sizing your fun budget: If discretionary purchases are toppling your budget each month, consider setting a new limit or switching to cash purchases. That way when the fun money runs out, it runs out.
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Removing recurring expenses from your credit card: It’s easy to overlook the monthly charges, but when you move your automatic bills from your credit card to your checking account, you might be able to get a better handle on your high-interest debt.
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Cancelling subscriptions and services: Sneaky money-suckers like streaming services and recurring monthly deliveries can add up fast. Consider cutting out what you don’t use.
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Trading time for money: Spending extra time each week hunting for deals in store flyers or clipping coupons can cut down your regular expenses, such as groceries, considerably. Also, consider searching for secondhand finds instead of clicking “add to cart,” and using neighbourhood swap sites for when you need new appliances or kids’ items. Spending a little extra time on the search can mean saving big bucks in the long run.
It’s also a good idea to set a financial goal for the new year, to give you something positive to focus on and make the cutting back feel worth it. Some goals you can consider include:
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Paying off high-interest debt: Tackle your credit cards or auto loan, using the snowball or avalanche method.
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Boosting your emergency fund: Ensuring you have a full three- or six-month financial cushion can help you rest easier at night, knowing you can handle the unexpected.
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Saving more for retirement: You’ll never regret putting more money aside for the future. Ensure you contribute enough to take advantage of the full employee match for your company 401(k), and consider opening a Roth IRA to boost your tax-free retirement income.
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Giving to charity: If your budget is in good shape, or you’re a high earner, consider how much of your income can go to donations, which can reduce your annual tax bill. Giving back will make you feel wealthier and more positive than a late-night buying spree ever could.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Credit Karma (1); The Guardian (2); Tax Foundation (3); Trading Economics (4); Wealth Tender (5)
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
