Why 1 in 3 Americans expect their finances will get worse in 2026
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Over a third of Americans think their bank accounts will look worse in 2026, the most pessimistic people have been since Bankrate began monitoring the sentiment in 2018, according to a new report.
Why it matters: Americans vote based on their pocketbooks, and if consumer outlooks don't improve, that pessimism could spell trouble for President Trump and Republicans in the 2026 midterms.
By the numbers: 33% of Americans think their finances will worsen in 2026, compared 23% who said the same in 2025.
- 78% of the people who expect 2026 to be a rockier financial year feel that way because of persistent inflation.
What they're saying: "President Trump's pro-growth policies are making tremendous progress to make America affordable again," White House press secretary Karoline Leavitt said in a news conference on Thursday.
- "The Trump administration is working hard every single day to bring down the cost of living through bigger paychecks and lower prices… . there's much work to do, but this has already been significant progress."
The other side: "Inflation fatigue is real, as Americans prepare to flip the calendar but cannot turn the page," Mark Hamrick, a Bankrate economist said in an emailed statement.
- "A declining sense of economic optimism comes as the job market has cooled and inflation has remained persistent, with prices broadly still elevated."
The intrigue: The youngest members of the labor market, Gen Z (ages 18-28) were least likely to think their finances will deteriorate (54%) and were most likely to think their wallets would be heavier next year (46%.)
- Roughly 60% of millennials (ages 29-44) predict a personal finance downturn next year, and 69% of Gen X (ages 45-60) and 76% of baby boomers (ages 61-79) think the same.
Zoom out: Republicans suffered several bruising election defeats this year, with voters making it clear that affordability is their top issue.
- Miami elected a Democrat as mayor earlier this month, putting a liberal in the driver's seat for the first time in 30 years.
- In Nashville, a Trump-backed Republican won a House seat by single digits, a serious rebuke in a district the president won handily in 2024.
- And two Democrats kicked Republicans off a Georgia energy commission board in November, eroding GOP power on what was previously an all-red group.
The bottom line: The midterms are nearly a year away and survey results are hardly settled science.
- But between health insurance premiums likely to skyrocket in 2026, persistent inflation and a cooling job market, Republicans have reason to be wary heading into the new year.
Go deeper: Cheers and alarm: 4 takeaways from the GOP's win in Tennessee special election
