Zip Research Finds Americans Prioritize 'Small Joys' and Self-Care Despite Rising Costs

While most households are managing day-to-day expenses, many are doing so with little room for error – revealing a widening gap between appearing financially stable and actually feeling secure. The research shows:

Only 24% of Americans say they feel financially secure

80% report feeling stressed about money at least a few times a month

38% say they do not feel in control of their finances

47% have delayed paying bills in the past six months

Even for households that seem financially stable, a single unexpected expense can quickly create strain. This fragility underscores how thin the line is between stability and stress and how closely financial confidence is tied to perceived affordability. Emergency preparedness remains limited:

36% say they could cover a $1,000 emergency but would feel financially stretched

33% say they would struggle or be unable to pay

The traditional inflation-driven belt-tightening narrative gets challenged here. The research instead points to “selective resilience” – where consumers are making careful tradeoffs while preserving spending that supports mental health, routine, and emotional stability.

Despite widespread financial strain:

67%  are selective about where they cut back, choosing to preserve certain priorities even when money feels tight

When asked which categories they would protect if forced to choose:

35% would not cut self-care or wellness spending, such as gym memberships, skincare, or therapy

32% would not cut dining out or entertainment

These choices suggest that consumers increasingly view certain categories not as indulgences, but as spending that remains personally affordable and essential to everyday life. 

When asked what financial wellness means most, respondents prioritized being debt-free and having savings over wealth accumulation. Many reported feeling most proud of practical behaviors such as sticking to a budget, paying down small balances, and avoiding the use of emergency funds, signaling a desire for stability and peace of mind rather than luxury. Traditional financial metrics are no longer telling the full story:

64% say credit scores, savings, and debt levels do not fully reflect their financial well-being

Financial responsibility today looks different than it once did. For many households, it means carefully balancing limited resources while protecting health, stability, and daily functioning. Many Americans are managing their finances but with very little margin for error. In that reality, self-care and small joys are no longer indulgences.

The findings are based on an online quantitative survey of 1,117 U.S. adults aged 18–65, sampled outside of Zip’s customer base, via the Suzy platform. The research explored how Americans feel about their financial health, confidence, and day-to-day money management in today’s economic environment.

Zip Co Limited (ACN 139 546 428) (ASX: ZIP) is a digital financial services company offering innovative, people-centred products. Operating in two core markets - Australia and New Zealand (ANZ) and the United States (US), Zip offers access to point-of-sale credit and digital payment services, connecting millions of customers with its global network of tens of thousands of merchants.

Founded in Australia in 2013, Zip provides flexible and transparent payment options, helping customers to take control of their financial future and helping merchants to grow their businesses.

For more information, visit: www.zip.co. Loans through Zip are originated by WebBank.