TROY, Mich.--Even in the best economic conditions, the holidays can create financial stress. But as consumers in the United States continue to feel the pinch of persistent inflation and high cost of consumer goods, a perfect storm of financial insecurity may be brewing, J.D. Power said.
According to J.D. Power, the number of consumers in the United States classified as financially healthy fell to 30%. The drop represents a 13-month low, as consumers show growing concern about not only how they’ll afford their holiday shopping, but also how to manage the cost of household necessities.
Monthly utility bills are a focal point. More than 1-in-5 (22%) consumers do not feel they are financially equipped to handle their current utility bill, and 78% are worried about the cost of their utilities in the next 12 months.
Financial Health Tumbles
The percentage of U.S. consumers categorized as financially healthy dropped to 30% in November, down 4 percentage points from October. This is the lowest rate of financially healthy consumers in over a year. The share of consumers who are either vulnerable, overextended or stressed increased to 70%.
The percentage of consumers who say the price of goods is rising faster than their income rose to 69% in November. Notably, the percentage of financially healthy consumers who say the price of goods is rising faster than their income is now 58%, up 3 percentage points from November.
Festival Of (Expensive) Lights
"That financial pinch isn’t just from trying to pile presents under the tree. In fact, as the data has indicated for years, consumer financial health has long been stuck in a malaise, vacillating between varying degrees of financial stress. And, as we’ve seen consumers trim back on travel, holiday shopping and more, their worries are now shifting to something more basic: utilities," J.D. Power said.
Overall, 22% of consumers say they do not feel financially equipped to handle their current utility bills. This rate was highest among vulnerable consumers (39%) and consumers under the age of 40 (26%).
When asked about the next year of utility bills, consumer sentiment turned increasingly negative. A majority (78%) of consumers say they are worried about the cost of their utility bills increasing in the next 12 months, with 25% of those being extremely worried. Once again, vulnerable consumers pace the field, as 84% say they are concerned, followed by 82% of stressed consumers, and 78% of consumers over the age of 40.
A Time For Resolutions
"The jury is still out whether this latest dip in financial health is the culmination of four years of struggle, or simply another monthly ebb in consumer sentiment. But with the primary indicators tracking downward amid increased anxiety around routine household expenditures, there is certainly reason for some concern," J.D. Power said. "As we continue to monitor through next month – when many of these holiday bills come due – consumer financial health will need be front-and-center in the minds of banks and financial institutions, utilities, retailers and more."
The report is based on responses from 4,000 consumers nationwide and was fielded in November 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at J.D. Power.