Budget Cuts, Side Hustles, and New Debt: How Americans Are Managing Rising Costs in 2025

New Kikoff surveys reveals the growing impact of inflation, tariffs, and financial stress.

Inflation and economic uncertainty continue to reshape how people manage their money. And now, with tariffs poised to drive prices even higher, financial stress is climbing.

Kikoff conducted two surveys to understand how these shifts are impacting consumer behavior. 79% said their financial stress has increased since the news of tariffs broke. More than half (51%) expect their costs to rise by 26-50% in the months ahead.

Essentials are becoming harder to afford.

While economic policies keep changing, the cost of everyday life keeps climbing, and for many, even the necessities are out of reach.

86% of people say inflation has made it more difficult to afford basics like gas, groceries, and other everyday needs.
More than one (36%) in three worry every day about being able to pay for essentials like food, housing, or transportation.

Debt is becoming a lifeline.

Credit card debt reached a new high at the end of 2024, exceeding $1.2 trillion.

Summer is getting scaled back.

This year, 73% of people say they're cutting back on summer spending.

People are bracing for what's next.

With rising costs and few signs of relief, people are not just reacting, they're preparing.

What this means.

The data shows that Americans are feeling the pressure, but they're taking action: adapting, cutting back, and finding ways to stay ahead as costs continue to rise.

At Kikoff, we're building credit and other creative, low-cost financial solutions to help people navigate what's ahead. From building credit to saving money through AI Debt Negotiation and Dispute services, our goal is to help people move forward with confidence.