75% of Consumers Say Inflation Coping Strategies Aren't Working

• Younger consumers (Gen Z, millennials) are stacking 4+ coping strategies simultaneously, including extra work, installment plans, and borrowing, but perceived effectiveness dropped 15 percentage points across all groups.
• Grocery-related financial stress jumped to 89% of consumers (from 84% in October), while dining out and delivery stress rose to 47%, showing inflation compressing budgets beyond just essentials.
• The report suggests opportunity for financial services firms to provide tools for predictability and cash flow management, such as real-time account visibility, embedded installments, and bill smoothing aligned with income cycles.

Summary: Consumer Inflation Coping Strategies Failing, PYMNTS Survey Finds

A February 2026 PYMNTS survey of 2,747 U.S. consumers reveals widespread financial strain, with 75% reporting their inflation-coping strategies are no longer effective—a 15-percentage point decline in perceived effectiveness even among those using multiple tactics.

Key Findings:

• 51% of consumers find managing daily living expenses challenging, unchanged from October, indicating persistent cost pressures
• 89% reported financial stress when buying groceries, up from 84% in October, with double-digit increases among millennials and bridge millennials
• 47% now experience financial stress from dining out and food delivery, up 4 percentage points from October
• 60-75% across all generations are cutting back on everyday spending and avoiding large purchases
• Approximately 1 in 5 millennials, bridge millennials, and Gen Z consumers employ four or more simultaneous coping strategies, including extra work, installment plans, and borrowing from friends/family

Generational Impact:

Younger consumers are "stacking" multiple coping strategies while older consumers pull back on spending. Healthcare costs affect generations differently: baby boomers and seniors face rising premiums and dental care costs, while Gen Z experiences increased expenses for prescriptions, vision care, and mental health services.

Market Implications:

The report identifies opportunities for banks, FinTechs, and payment providers to address consumer needs through simplified solutions rather than additional financial products. Recommended tools include real-time account visibility, embedded installment options, and bill-smoothing features aligned with income cycles.

Despite elevated financial stress, consumer engagement remains high, suggesting demand for products offering predictability, flexibility, and visibility in managing recurring expenses rather than episodic spending.