Financial Health Pulse® 2025: Key Insights into U.S. Consumer Savings and Debt Management
CHICAGO, Sept. 17, 2025 — The Financial Health Pulse® 2025 U.S. Trends Report, released by the Financial Health Network, sheds light on recent trends in consumer savings and debt management. While there have been modest improvements, underlying economic risks pose significant challenges that could hinder or even reverse these gains.
Understanding Financial Health in the U.S.
Now in its eighth year, the Financial Health Pulse is a pivotal study examining the financial wellness of American households. By employing a nationwide panel of over 7,400 households, the report categorizes respondents into three tiers:
- Financially Healthy
- Financially Coping
- Financially Vulnerable
The classification is based on responses related to financial behaviors and outcomes. The report’s consistent tracking of eight key indicators reveals long-term trends often overlooked by traditional macroeconomic data.
Recent Trends in Financial Health
Between 2024 and 2025, nearly 25% of U.S. households reported changes in their financial health tiers. Positively, about 7.7 million households moved from the Financially Vulnerable to Financially Coping category. However, despite these shifts, the percentage of Financially Healthy households has plateaued since 2022, remaining well below pre-pandemic highs.
Jennifer Tescher, founder and CEO of the Financial Health Network, underscores the urgency of these findings: “The lack of substantial progress in Americans’ financial health is alarming. Short-term gains are at risk from cuts to safety nets and other economic pressures.”
Key Findings from the 2025 Report
1. Persistent Financial Health Challenges
- Financially Healthy households have remained around 30% since 2018, with only temporary increases during the pandemic.
2. Diminishing Confidence in Insurance
- A mere 56% of households reported moderate confidence in their insurance coverage, reflecting a downward trend fueled by rising premiums and climate-related costs.
3. Impacts of Student Loan Repayment
- Borrowers are feeling the pressure again, with self-reported credit scores dropping from 69% to 65% regarding those who consider their credit “good” or better.
4. Noticeable Decline in Financial Vulnerability
- The percentage of Financially Vulnerable households dipped to 15%, aided by better saving practices. Nearly 49% of households reported spending less than their income.
5. Positive Trends Among Lower-Income Households
- Financial vulnerability dropped among households with negative net worth from 56% to 48%. Black households also witnessed improvements, declining from 29% to 24%.
Emerging Financial Management Strategies
While some households are learning to navigate their finances through emerging digital tools, the report highlights that adoption rates are uneven. Here are some noteworthy trends:
- The use of AI chatbots for financial advice more than doubled, rising from 3% to 7% in just one year.
- 12% of households engaged with credit-building products, such as secured credit cards and rent reporting.
- Households employing automated savings strategies were more likely to have significant liquidity and savings for three months of living expenses.
“A coordinated, cross-sector action is vital for addressing these challenges and elevating financial health,” says Jo Christine Miles, Director of the Principal® Foundation.
Call to Action: Moving Forward
While easing inflation and stable employment have provided temporary relief, risks from tariffs and job growth fluctuations loom large. The report suggests that employers, financial institutions, and policymakers focus on vulnerable populations, including those with limited assets and student debt.
Conclusion: A Unified Approach for Financial Stability
To maintain progress in financial health, stakeholders must collaboratively ensure that recent gains do not stall and that a future of financial well-being is achievable for all.
About the Financial Health Pulse®
Launched in 2018, the Financial Health Pulse® research initiative provides actionable insights into the financial lives of Americans. For more details on the report, visit Financial Health Pulse Trends 2025.
Get in Touch
For inquiries, contact:
Catherine New
Financial Health Network
cnew@finhealthnetwork.org
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