For much of the past year, consumers have been sending conflicting messages. They keep spending money while simultaneously telling surveys they feel pessimistic about the economy. The Federal Reserve's latest annual household well-being survey helps explain why.

Americans' views of the national economy have deteriorated, yet many still feel relatively stable about their own finances. The survey — which had more than 13,000 participants — showed that 73% of adults said they were either "doing OK" financially or "living comfortably" in 2025, unchanged from the prior year. Yet, roughly 25% rated the national economy as "good" or "excellent," down dramatically from pre-pandemic levels.

That disconnect may help explain why consumer spending has remained more resilient than expected despite weak sentiment readings and ongoing economic uncertainty.

At the same time, the survey suggests financial pressure is building, particularly around employment and affordability. Concerns about finding or keeping a job rose to 42%, up from 37% the prior year. Younger households are feeling the strain as well, with 15% of adults under 30 reporting that they aren't working because they can't find a job. Additionally, half of adults under 30 are living with a parent.

Inflation also remains a defining issue, with 9 in 10 adults citing rising prices as a minor financial concern. Among Americans earning less than $50,000 annually, 66% described inflation as a major concern, compared with 42% of households earning more than $100,000.

The survey also highlighted a growing divide around generative AI. Roughly one in four workers reported using AI tools on the job, with adoption heavily concentrated among workers with graduate degrees. Workers already using AI were generally optimistic about its impact on their careers, while non-users were far more concerned about job displacement.

For advisors, the broader takeaway is that many clients may appear financially stable today while still feeling increasingly uneasy about the future. Traditional economic indicators alone may not fully capture client psychology in this environment.

Concerns around job security, affordability, and technological disruption are shaping household behavior differently across generations and income levels — making it increasingly important to understand not just how clients are doing financially, but how they feel about what comes next.

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