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What a difference a year makes.
Federal Reserve Bank of New York consumers gained confidence about their finance fall fast According to the November “Consumer Expectations Survey”, compared to the previous month.
From October 2025 to November 2025, the percentage of people feeling bad about their finances now increased compared to a year ago. The report also found consumer There are more negatives than positives about what their financial situation will be like a year from now.
The New York Fed report provides consumer sentiment data about a variety of economic and financial issues.
“Perceptions about the current financial conditions of households have worsened significantly, with a larger share of respondents reporting that their households were in worse shape than a year ago and a smaller share reporting that they were better off,” the survey said.
The household financial situation section of the report takes a look at how people generally feel about their financial situation.
This section provides sentiment in two forms: household financial position now versus one year ago, and one year from now.
Household Finance: 2025 vs 2024
Here’s how consumer perceptions about their current household finances changed from October 2025 to November 2025 compared to a year ago:
|
Current sentiment about household finances compared to a year ago |
October 2025 |
November 2025 |
percentage-point change |
|---|---|---|---|
|
is much better |
5.2% |
4.0% |
-1.2% |
|
somewhat better |
17.4% |
13.7% |
-3.7% |
|
about that |
43.1% |
43.4% |
+0.3% |
|
somewhat worse situation |
26% |
28.8% |
+2.8% |
|
very bad situation |
8.4% |
10.2% |
+1.8% |
Overall, consumers felt their financial situation was worse this year. Their “somewhat worse” and “much worse” feelings increased by a combined 4.6 percentage points. Sentiments of “much better situation” and “somewhat better situation” declined by a combined 4.9 percentage points.
About 39 percent of consumers feel they are worse off financially now than they were last year, which is more than double the rate of consumers who felt they were better off (17.7 percent).
household finance one year from now
The following chart shows how consumers’ expectations about their household finances changed one year in the future, from October 2025 to November 2025:
|
Sentiment about where household finances will be a year from now |
October 2025 |
November 2025 |
percentage-point change |
|---|---|---|---|
|
is much better |
5.6% |
4.0% |
-1.6% |
|
somewhat better |
21.9% |
22.5% |
+0.6% |
|
about that |
40.9% |
42.2% |
+1.3% |
|
somewhat worse situation |
23.3% |
24.8% |
+1.6% |
|
very bad situation |
8.4% |
6.6% |
-1.8% |
There was a better balance between positive and negative expectations in consumers’ outlook for the year ahead. Some 31.4 percent said they expect a worse situation, while 26.5 percent said they expect a better situation. Additionally, there has also been a decline in the percentage of people who believe that their financial situation will be much worse a year from now.
Why is consumer sentiment deteriorating?
While it may be hard to pinpoint why consumer expectations and confidence are struggling, data and insights firm PYMT noted The NY Fed reports in its own analysis that nearly two-thirds of consumers are living paycheck to paycheck.
That week-to-week volatility, combined with the fact that nearly 60 percent of consumers earn their main income outside of a fixed salary, could fuel a sense of economic well-being.
“PYMNTS Intelligence research shows that many consumers experience income volatility that makes planning more difficult,” the company said.
Other notable findings
The new report also covers areas beyond household finance. It also takes the pulse of consumer sentiment about the job market, credit access and inflation.
Here’s what the report revealed in those areas:
- A year from now, sentiment about unemployment has improved slightly.
- The average perception of inflation one year from now was “unchanged.”
- Confidence in credit access (how easy it is to get credit cards, loans and other credit products) was lower than last year
- Consumer optimism about credit access a year from now had also diminished.
control
With nearly 40 percent of consumers now feeling worse about their finances than they did a year ago, low-risk bank accounts may be a good choice for earning safe returns if your goal is to save money during tough times. Two safe options are certificates of deposit (CDs) and high-yield savings accounts.
CD
CDs are available through most banks and credit unions. Their maturity dates typically range from a few months to several years, and most CDs will charge you a fee if you withdraw your funds before maturity. On maturity, your bank will make available your original deposit amount and the interest earned by you.
It’s relatively easy to find rates above 4 percent right now. CDs offer the benefit of a fixed interest rate – in most cases your interest rate doesn’t change – and you can avoid early withdrawal fees by opening a CD with no penalty.
High-Yield Savings Accounts
High-yield savings accounts give you more liquidity than CDs — you usually won’t have to pay any fees to withdraw money.
However, high-yield savings have variable interest rates, which can increase and decrease each month. During a sustained period of falling interest rates, your returns will also be reduced as the interest rate on your account decreases. The opposite is also true – if rates increase over time, the rate on your account will also increase.