A recent U.S. Bank survey shows that many Americans are feeling discouraged about reaching major financial goals—even though they’re doing the “right” things like budgeting, spending less on fun activities, and planning carefully. Out of 5,000 people surveyed, most said they’re trying to be smart with their money, yet still feel like they’re falling behind. Rising inflation, high housing costs, and student loans are making it hard for people to build wealth or even save for retirement. This is especially true for younger adults, who are working hard but feel that the American Dream—owning a home, saving for the future, and living comfortably—is becoming more out of reach, no matter how responsible they are with their money.

As economic uncertainty continues and prices remain high, many Americans are becoming more careful about how they spend their money. One growing trend is the "no-spend challenge," where people try to avoid all non-essential purchases—like eating out, shopping for clothes, or buying entertainment—for a specific period of time. This strategy helps individuals save money and become more aware of their spending habits. Recent data from the Federal Reserve Bank of New York shows that expected consumer spending growth has dropped slightly, indicating a more cautious mindset among shoppers. With ongoing inflation and concerns about jobs, many are choosing to simplify their finances and focus on essentials.