HONOLULU (KHON2) -- Finances continue to be an issue for many Americans; and with a fundamental gap in knowledge regarding how finances work from the federal level to the individual, many feel a harrowing sense that they have no control over their finances. A recent study called has revealed some surprising and concerning trends about Americans' financial feelings. Get Hawaii's latest morning news delivered to your inbox, sign up for News 2 You Despite some positive signs about the economy, many people are feeling more financially insecure than ever before. So, KHON2.com decided to break down the main findings of the study and what they mean. Key findings Rising financial insecurity: Around one-third (33%) of adults in the U.S. said they do not feel financially secure. This is the highest level of financial insecurity the study has recorded since it began in 2009. This is a big jump from last year, when 27% of people felt the same way. This shows that more people are worried about their finances now than ever before. Expectations about the economy: Although many Americans still think the U.S. might go into a recession (a period when the economy struggles), fewer people think it will happen this year. When the survey was done, about 54% of adults believe a recession will continue, but that is down from 67% who expected it in 2023. People from all age groups are showing more optimism about the economy. For example, younger generations (like Gen Z and Millennials) are more hopeful compared to last year. Inflation is a big concern: Inflation, which means prices for things like food, gas and housing are going up, is still a huge worry. More than half (54%) of Americans expect inflation to keep increasing. Only 9% of people say their incomes (the money they earn) are increasing fast enough to keep up with rising prices. Inflation is considered the biggest barrier to financial security, even more than other things like debt or lack of savings. Government concerns: Americans are also worried about government dysfunction which means the government not working well or making decisions that can harm the economy. About 34% of people said this is one of their biggest financial worries. Roughly 33% of Americans said they were anxious about how the election might affect their finances. How people are dealing with financial concerns: To handle their finances, many people are choosing to be more careful. 42% of adults said they want to protect what they already have by cutting costs and building savings while only 29% said they would take risks to try and grow their money. Young people, especially Gen Z, are more likely to look for ways to earn extra money by getting a side job or working more. Declining financial discipline: Fewer Americans are staying on top of their financial planning. In 2020, 65% of people said they were disciplined about managing their money. That number dropped somewhat to 45% in 2024. This could be because many people became less focused on saving and planning after the pandemic and now feel like they are just trying to “get by”. People are still spending: Even though many people feel financially insecure, they’re not cutting back on spending as much as you might expect. About 59% of adults say they’ve spent the same amount or more on things like vacations, eating out and entertainment in 2024. But 37% say they will spend less, especially older adults like Gen X. Younger people, like Gen Z, are the most likely to spend more, especially on things like dining out or fun activities. So, with 2024 nearly done, you may be asking yourself why are these findings important? This study shows that while Americans are feeling a little better about the economy overall, many still don’t feel financially secure. Rising prices, worries about the government and the possibility of a recession have created a sense of uncertainty. Even though people are anxious about money, many are not making major changes to their spending habits just yet. These feelings of insecurity are partly caused by inflation which is making everyday things more expensive. For example, buying groceries, going to the doctor and paying for a place to live are costing more money; and many people’s pay cheques aren’t keeping up with these increases. Another thing to note is that financial discipline is on the decline. During the pandemic, more people were paying close attention to their money; but now, it seems like some people have started to spend more freely or have lost focus on saving for the future. The study was done by a company called Harris Poll for Northwestern Mutual. They surveyed 4,588 adults from all over the United States between Jan. 3 and Jan. 17, 2024. The survey was done online; and the results were adjusted so that they matched the actual population in terms of age, gender, race, income and where people live. This way, the study’s results reflect the opinions and concerns of the entire U.S. population, not just one group of people. Even though many people are feeling better about the U.S. economy than they did last year, they are still anxious about their personal financial security. Inflation, government decisions and the possibility of a recession are making people more worried about their money. Many are trying to be cautious, saving more and cutting back where they can; but overall, fewer people are sticking to their financial plans than before. This information helps us understand how people are thinking about their money right now and what challenges they are facing in 2025. While some people are finding ways to spend more freely, others are being more careful and trying to protect what they have. Understanding these trends can help us make smarter decisions about our own finances, whether we are saving for something important or just trying to keep up with rising prices. You can click here to read the full study. Get news on the go with KHON 2GO, KHON's morning podcast, every morning at 8 This is the first in a four-part series in which KHON2.com sits down with a local wealth management advisor to discuss planning for holiday spending, how to navigate the finances of holiday travel and the importance of seeking finance therapy.