Planning & Progress Study 2026

Northwestern Mutual’s 18^th annual Planning & Progress Study finds half of adults in America now saying they feel financially secure – an increase from 44% last year. Over half also consider themselves to be ‘disciplined’ financial planners. Even optimism around homeownership is on the rise.

But at the same time, a sizeable number of Americans – particularly young adults – are investing in or are considering investing in high-risk/speculative assets such as prediction markets, sports betting, and cryptocurrencies. Among those using or considering these financial instruments, 73% say they’re doing so because they feel financially behind and think those investments offer a faster path to their goals than traditional methods. And among Gen Z, the number is 80%.

Financial Security and Discipline Continue to Improve

The number of Americans who say they’re financially secure went up across every generation, with the largest year-over-year gains coming from Millennials and Gen X.

Feel financially secure	2025	2026
U.S. Adults	44%	50%
Gen Z	36%	39%
Millennials	43%	53%
Gen X	40%	48%
Boomers+	55%	57%

Among Americans with a financial advisor, 71% said they felt financially secure while just 10% did not feel financially secure.

Financial discipline improved too. The number of Americans who consider themselves to be ‘disciplined’ financial planners hit a high of 65% in 2020, during Covid. Four years later it fell to a record low of 45% in 2024. Now it is on a two-year upward trend.

U.S. Adults who consider themselves “disciplined” financial planners
2020	65%
2021	60%
2022	59%
2023	50%
2024	45%
2025	49%
2026	53%

Signs of Financial Nihilism Surface – Led by Gen Z

Gen Z and Millennials make up the largest share of Americans who are investing in – or are considering investing in – high-risk speculative assets this year. These young adults demonstrate the strongest interest in cryptocurrencies, sports betting, and event-based contracts offered through prediction markets.

Currently invested in or considering in 2026	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Crypto	24%	32%	35%	20%	8%
Sports betting / prediction markets	17%	32%	24%	10%	3%
Options	13%	17%	18%	14%	4%
Meme stocks	9%	14%	13%	6%	2%

Across generations, a driving factor behind why people are taking greater risks with these investments is because they feel financially behind.

Financial Nihilism	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Percentage who feel financially behind and believe high-risk/speculative investments will help reach financial goals more effectively than traditional methods	73%	80%	75%	66%	51%

Another finding from the survey is relevant here – more than half (52%) of Americans say they suffer from a common blind spot: they place too much emphasis on building wealth/growing their assets without dedicating enough to protecting their assets and managing against risks. And younger adults are reporting this planning gap more often: for Gen Z the number is 57% and for Millennials it’s 62%.

Homeownership Feels More Attainable – And Parents are Playing a Bigger Role

Homeownership remains central to Americans’ financial aspirations. Three-quarters (75%) of U.S. adults agree homeownership is essential to building wealth. Notably, agreement is highest among high-net-worth Americans ($1 million+ in investable assets) and those working with a financial advisor.

And among non-homeowners, the prospects of owning a home at some point are looking better. Notably, Gen Z and Millennials both saw upticks in optimism.

Among non-homeowners, percentage who believe owning a home is financially affordable now or will be in the future	2025	2026
U.S. Adults	33%	42%
Gen Z	42%	54%
Millennials	34%	47%
Gen X	33%	31%
Boomers+	16%	15%

Additionally, headwinds are easing, with fewer Gen Z and Millennial non-homeowners citing down payments, mortgage rates, or market competition as barriers compared to last year.

I don't have enough saved for a down payment	2025	2026
Total	64%	53%
Gen Z	70%	52%
Millennials	58%	52%

 

I'm not confident I can afford all the associated costs of home ownership (insurance, repairs, etc.)	2025	2026
Total	55%	51%
Gen Z	54%	47%
Millennials	52%	52%

 

Mortgage rates are too high	2025	2026
Total	48%	40%
Gen Z	57%	43%
Millennials	48%	47%

 

The housing market is too competitive and I am therefore priced out	2025	2026
Total	43%	38%
Gen Z	54%	42%
Millennials	37%	41%

Perhaps the most striking finding: 74% of parents with children at home would consider or have already started financially planning to help their kids buy a home. Among those parents, 29% say helping them buy a home someday is more important than helping them pay for college, and 55% say it’s equally important.

Inflation is Americans’ Top Concern Even as Its Real-World Impact Eases

The study finds that more people expect the U.S. economy to weaken in 2026 (45%) compared to those who expect it to improve (36%). Additionally, more than half (56%) of adults believe inflation will increase this year – up from 51% who said the same in 2025. Older adults are notably the most pessimistic when compared to last year – the number of Gen Xers who expect inflation to rise went from 46% in 2025 to 57% this year, and Boomers+ jumped from 46% to 56%.

Americans overwhelmingly cite inflation as the #1 obstacle to achieving financial security (42%), well ahead of things like lack of savings (25%), personal debt (22%), and healthcare costs (22%).

That said, while people’s real-world experience with inflation continues to be significant, it’s slightly improved from last year. Nearly eight in ten (79%) Americans say they’ve experienced higher prices in the grocery aisle in the last three months, down from 84% in 2025. But the biggest change is a 16-percentage point decline among those who have experienced higher expenses at the gas pump. This year, only 44% say they are seeing steeper gas prices, down from 60% last year.

Additionally, among those who have experienced elevated costs in each area, there have been general declines among those who indicate those costs are having a moderate-to-large impact on their finances.

Moderate-to-Large Impact of Inflation on Finances
	2025	2026	Change from 2025
Groceries	80%	72%	-8%
Gas	75%	71%	-4%
Utilities	77%	69%	-8%
Housing expenses	81%	79%	-2%
Childcare expenses	80%	77%	-3%

In another positive sign, household income is keeping pace with inflation slightly better this year, according to the research. The number of Americans who say their household incomes are growing slower than inflation dropped from 52% to 48%.

Household income vs. Inflation	2025	2026
Growing slower than inflation	52%	48%
On pace with inflation	28%	31%
Growing faster than inflation	11%	12%
Not sure	9%	9%

Wallets Tighten but Many Continue to Utilize ‘Buy Now, Pay Later’ Options

Fewer Americans expect to increase their spending on discretionary purchases in 2026. Gen Z remains the most likely to spend more (32%), though that’s down from 39% in 2025.

Non-essential purchases	2025	2026
Expect to spend more	29%	24%
Expect to spend the same	34%	40%
Expect to spend less	34%	33%
Unsure	3%	3%

When it comes to spending, Americans are divided on whether small daily sacrifices like giving up a daily cup of coffee can make a difference. According to the research:

• 47% believe cutting small purchases like a daily cup of coffee can improve long-term financial security
• 53% believe micro-steps like skipping coffee won’t materially impact long-term outcomes

However, relatively large numbers of Americans are opting for installment-style payments, even for small purchases.

• A third (33%) of U.S. adults used “Buy Now, Pay Later” options when making large purchases like vacations, event tickets, appliances and smartphones in 2025, and nearly a quarter (23%) used them for daily purchases like groceries and gas.
• This year, the share who plan to use “Buy Now, Pay Later” options is similar – 35% for large purchases and 23% for daily purchases.
• Use of “Buy Now, Pay Later” is most prominent among Gen Z and Millennials. Half of Gen Z (49%) and Millennials (49%) plan to use ‘Buy Now, Pay Later’ for large purchases in 2026; and a third or more plan to use it for small purchases – 36% of Gen Z and 32% of Millennials.

Americans’ Personal Debt Holds Steady, but Priorities may be Shifting

Among Americans who carry personal debt, the average amount people owe is $21,700 – nearly identical to the $21,500 reported in 2025.

Americans' Personal Debt, Exclusive of Mortgages
2026	$21,700
2025	$21,500
2024	$22,700
2023	$21,800
2022	$22,400

Credit cards remain the top source of debt by a wide margin, accounting for more than double the #2 source (car loans) and quadruple the #3 source (medical debt). Among Millennials, educational expenses for children and family members made the top three this year, replacing medical debt and ranking even higher than their own personal education loans.

Main Sources of Debt	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Credit card bills	29%	21%	32%	30%	29%
Car loan	12%	12%	12%	15%	11%
Medical debt	7%	8%	7%	8%	5%
Personal education loans	6%	12%	7%	4%	1%
Educational expenses for children/family members	5%	9%	8%	5%	1%
Caring for loved ones	4%	6%	5%	4%	1%

According to the study, six in 10 (62%) U.S. adults with debt prioritize paying down debt, compared to 38% who prioritize saving. This continues a long-term trend of U.S adults focusing more on debt repayment than savings, though it’s the first time since this question was introduced in 2022 where the share of people prioritizing paying down debt has declined.

U.S. Adults	2022	2023	2024	2025	2026
Prioritize saving money	43%	39%	36%	36%	38%
Prioritize paying down debt	57%	61%	64%	64%	62%

Read the News Release

Read the 2026 Planning and Progress Study – The Financial States of America

Read the Local Market Data Report