A new survey from Credit Karma surveyed Americans on their top financial regrets in 2025, painting a snapshot of the high cost of living in the U.S. today.
Nearly half of Americans say their finances got worse over the past year, with unexpected expenses disrupting their budgets in 28% of cases. The top three financial regrets reported include not saving enough, at 38% of respondents, impulsive spending, at 28%, and having too much high-interest credit card debt, at 21%.
However, some hope prevails: 45% of respondents believe they can turn things around in 2026 and hope to achieve their financial goals (1).
Here’s what you can do if you find yourself regretting your finances at the end of 2025, including our top tips to avoid financial mistakes in 2026.
A series of challenges hurt the finances of American households in 2025. For example, tariffs caused economic uncertainty and chaos in markets at the beginning of the year (2).
For ordinary Americans, the effective tariff rate (actually a tax) on imported goods rose to 11.2%, adding pressure to budgets already constrained by inflation, according to the Tax Foundation (3).
The inflation rate for 2025 hovered around 3% for most of the year, in addition to the increase in prices since 2020 (4). Finally, high interest rates have also put a strain on consumers’ pockets. Personal loan rates, credit card interest rates, and mortgage rates have risen in recent years and remain stable despite modest cuts from the Federal Reserve (5).
The Credit Karma survey found that 20% of Americans reported being behind on these types of bills, including mortgages and credit cards. Another 19% had difficulty meeting basic needs such as food. Most consumers (67%) said rising costs and other macroeconomic forces would be to blame for their budget difficulties in 2025 (1).
However, bad spending habits are also ruining the budgets of some. A 2024 Bankrate survey found that more Americans are “fatally spending,” or spending mindlessly as part of an unhealthy habit to deal with stress or anxiety. Nearly half (44%) of credit card holders carried a monthly balance. At that time, 38% reported that they would be willing to go into debt to make discretionary or fun purchases (6).
Read more: The average net worth of Americans is a staggering $620,654. But it almost doesn’t mean anything. Here’s the number that counts (and how to make it fire)
So how can you find a way to improve your finances in 2026 while still leaving some room in the budget for fun? First, it’s time to take a look at how you spent your money in 2025. Gather your bank and credit card statements (or look at your spending tracker app, if you have one) and break down your spending categories each month. This can give you a more realistic picture of where your money is going and where you can afford to cut back.
From there, you can consider:
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Adjust the size of your entertainment budget: If discretionary purchases are busting your budget each month, consider setting a new limit or switching to cash purchases. That way, when the fun money is gone, it’s gone.
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Eliminate recurring charges from your credit card: It’s easy to overlook monthly charges, but when you move your automatic bills from your credit card to your checking account, you may be able to better control your high-interest debt.
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Cancellation of subscriptions and services.: Money-sucking scammers like streaming services and recurring monthly deliveries can add up quickly. Consider eliminating what you don’t use.
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Trade time for money: Spending more time each week searching for deals in store brochures or clipping coupons can significantly reduce your regular expenses, like groceries. Also, consider looking for second-hand items instead of clicking “add to cart” and using neighborhood swap sites when you need new appliances or children’s items. Spending a little more time searching can mean saving a lot of money in the long run.
It’s also a good idea to set a financial goal for the new year, giving you something positive to focus on and make the cuts worth it. Some goals you can consider include:
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Pay high interest debts: Tackle your credit cards or auto loans, using the snowball or avalanche method.
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Boost your emergency fund: Ensuring you have a full three to six months of financial cushion can help you rest better at night, knowing you can handle the unexpected.
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Save more for retirement: You will never regret saving more money for the future. Make sure you contribute enough to take advantage of the full employee match to your company’s 401(k) plan, and consider opening a Roth IRA to grow your retirement income tax-free.
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Donate to charity: If your budget is in good shape, or you have a high income, consider how much of your income can go toward donations, which can reduce your annual tax bill. Giving back will make you feel richer and more positive than a late-night shopping spree ever could.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
Credit Karma (1); The Guardian (2); Tax Foundation (3); Commercial Economics (4); Wealth Bid (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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