May 19, 2026
It's common for people to develop opinions based on their own experiences. For example, if you attended a private school as a child, you might have feelings for or against the private education system. Do you have family members in the military? It would make sense to hold strong beliefs about the government's defense spending.
If Americans feel the U.S. economy is getting worse, it's probably because they've experienced the resulting financial struggles firsthand, right? Well, that's not how the data makes it look.
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A 2025 Federal Reserve study measuring economic well-being among Americans found that people's perception of the economy had worsened. Twenty-six percent of nearly 13,000 adults surveyed reported that the national economy was "good" or "excellent," a three percent decrease from 2024 and a 24% drop from before the COVID-19 pandemic (1).
However, 73% of respondents said that they were "doing okay financially" or "living comfortably," which was the same share as in 2024 (1).
What's the culprit for this disparity? Is it cognitive dissonance, or are people misinformed about the economy? When we break down the data, the answers become increasingly clear.
Which Americans are really "doing okay" financially?
The data shows that 73% of people felt somewhat financially stable. But what about the other 27%? What are the differences between these two groups?
Predictably, those with lower incomes felt less financially secure. Only 45% of those earning under $25,000 reported feeling okay or comfortable, and 91% of households earning $100,000 or more felt solid about their financial situation (1).
The Federal Reserve tracked neighborhood income, too. Just 59% of people living in low-to-moderate-income neighborhoods felt financially sound, while 79% of those in middle-to-upper-income neighborhoods reported the same (1).
Let's look at education. Those with a bachelor's degree or higher were the largest group to report they were doing okay or living comfortably (86%). Meanwhile, those with less than a high school degree had the fewest respondents who were doing well financially (41%) (1).
When it comes to race and ethnicity, Asian (82%) and white (79%) people reported the highest rate of financial well-being, but Hispanic (62%) and Black (60%) respondents had the lowest (1).
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Financial details by demographics
Millennials and Gen Z claim that housing costs and student loans are two of the largest financial challenges they're facing (2). How do those two costs affect people in various demographics?
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There is a clear homeownership disparity among Americans. Of households earning under $25,000 annually, 24% owned houses — but 86% of families bringing in $100,000 or more were homeowners. White adults were the most likely to own homes (72%), followed by Asian (66%), Hispanic (48%), and Black (44%) adults (1).
America is facing a national home affordability crisis, and, understandably, this would hurt lower-income households more than higher-income ones. Of renters in the U.S., only two percent believe housing costs are reasonable, and 93% say prices are unreasonable (the remaining amount say they are unsure (3).
Hispanic and Black people face the additional disadvantage of redlining. The practice of redlining — a discriminatory practice that results in denying BIPOC people from receiving financial services, especially mortgages (4) — has been illegal since 1968. However, lenders still find ways to practice it and keep people of color from buying houses (5).
Surprisingly, household income had little effect on whether people had student loans. Earnings did impact whether they were current on their student loan payments, though. The lower the household income, the lower the share of respondents who made their total required student loan payment the previous month (1).
Regarding race and ethnicity, more Black people reported having student loans than others (28%) and the lowest rate of full required repayment the previous month (52%). Meanwhile, Asian people had the fewest student loans (12%), and white people made the most full, on-time required payments (83%) (1).
How to make headway on homeownership and student loan debt
You might think you can't afford to buy a home in the near future, but look into down payment-assistance (DPA) programs. There are many types of DPA programs, including grants that you don't have to repay, and you can put the money toward a down payment or closing costs. Around 80% of first-time homebuyers qualify for down payment assistance, but only 13% take advantage of this service (6).
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Finding the right DPA program may be the hardest part. Use Down Payment Resource (7) to find ones for which you qualify.
If you're a BIPOC buyer, you may want to use a mortgage lender that specifically supports your demographic. For example, New American Funding is the biggest Latina-owned mortgage lender in the U.S. Its Latino Focus initiative is dedicated to helping Latino families become homeowners (8).
Are you struggling to afford your monthly student loan payments? The best way to handle the situation depends on whether you have federal or private loans.
If you can't afford federal student loan payments, consider enrolling in an income-based payment plan. You could also switch to one with a longer repayment term. You'll be repaying your loans for longer (and interest will accrue more over time), but your payments will be lower (9).
Your private student loan options will depend on the lender. Some allow you to make bi-monthly payments, which could help if you're living paycheck-to-paycheck and get paid every two weeks. Private lenders also allow you to refinance your loans into a lower rate or longer term, resulting in lower monthly payments (10).
Regardless of whether you have federal or private student loans, you should not ignore the payment. If you stop making payments altogether, your credit score will go down, your lender could take you to court, and the government or collections agencies might garnish your wages (11).
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
U.S. Federal Reserve (1); New York State Comptroller (2); Searchlight Institute (3); Cornell Law Institute (4); UC Berkeley School of Public Health (5); Realtor.com (6); Down Payment Resource (7); New American Funding (8); Consumer Financial Protection Bureau (9); Sallie Mae (10); Federal Student Aid (11)
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Laura Grace Tarpley is a contributing reporter for Moneywise who has been covering personal finance and working in digital media for 10 years. Her expertise spans banking, investing, retirement, loans, mortgages, and taxes.
