Most Americans Feel Unprepared for Today’s Economy — Unless They Have a Financial Advisor
Written by
Gabriel Vito
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
For many Americans, it’s clear that their dollar doesn’t go as far as it used to. Inflation remains elevated, interest rates are still high, tariffs are raising certain prices and we continue to hear about an impending recession. A survey from Equitable reported that only 42% of Americans say they feel prepared to handle today’s financial challenges, and more than two-thirds worry the economy could knock their long-term goals off track.
The divide appears when you look at who has help and who does not. According to the survey, those who have a financial advisor feel twice as prepared as those without one. People are stressed, but planning and guidance help them feel more grounded.
The upside is that there are ways to feel more in control, whether someone works with an advisor or not.
Why So Many Americans Feel Unprepared
Households are adjusting quickly as prices shift.
“According to eMoney’s Planning Better Together research, today’s financial planning landscape is characterized by a growing demand from individuals who are increasingly concerned about high interest rates and the rising cost of living,” said Emily Koochel, Ph.D. “Respondents are preparing for long-term uncertainty. With 78% reporting, ‘I am thinking about how to manage my money with inflation at an elevated rate for the next few years’, 77% reporting they are following a budget more closely due to rising prices, and 62% reporting they have put making a major purchase on hold. Conversely, 52% report they have a financial plan and feel secure in their life because of it.”
Equitable also found that about half of Americans expect to cut discretionary spending, increase savings or adjust their investments this year. Nearly two-thirds of stock market investors say they would trade the chance at higher returns for more protection. Stability matters right now.
The Preparedness Gap With and Without Advisors
The confidence gap between people who work with advisors and those who do not is significant. Nearly 6 in 10 people with an advisor feel prepared for today’s financial pressures, according to Equitable. Only 3 in 10 of those without one feel the same.
People with advisors are also more likely to adjust their portfolios too. Fifty-four percent plan to make changes compared with 36% of those without professional support, per Equitable.
Trust plays a major role. Koochel, referencing the eMoney research, noted, “People are increasingly turning to financial advisors, with nearly half either already working with a professional (26%) or planning to within the next year (21%). Their choice to work with their financial professional is driven by trusting in their advisor’s experience (39%), their ability to simplify complex information (35%), and the consumers’ desire to work with someone who truly understands their personal priorities and values (34%).”
What To Do If You Don’t Have an Advisor
If you don’t work with a financial advisor, you can still build stability on your own. Many of the steps recommended by institutions like Charles Schwab line up with simple habits anyone can start, especially in preparation for a recession.
Schwab suggested reviewing your financial goals regularly, staying on top of your spending and building an emergency fund that can cover a few months’ worth of essential costs. It also noted that even a basic DIY financial plan can help people make clearer decisions during uncertain times.
Here are a few practical places to start.
- Review your budget as prices change.
- Check your goals and risk tolerance once a year.
- Build short-term savings to cushion unexpected costs.
- Rely on reputable financial education sources instead of social media.
- Use low-cost planning tools or counseling services if a full advisor is not affordable.
Small and steady habits often create a stronger sense of control. Your preparation can give you peace of mind even during times of economic uncertainty.
More From GOBankingRates
