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Americans are facing increasing financial stress, but even small changes in daily habits can have a big impact on long-term wealth, one expert says.
Nearly three-quarters of Americans failed to meet their savings and spending goals last year, according to a Vanguard consumer survey — highlighting financial stress across the country.
Many families are facing extensive cost pressures. The Federal Reserve said in its latest Household Economics and Decisionmaking survey that inflation and inflation remain top financial concerns, while overall financial well-being remains below the recent peak reached in 2021.
People in their 30s and 40s are also falling into costly pitfalls, including failing to build emergency savings, delaying investments and taking on too much debt, fintech entrepreneur and financial expert Ksenia Yudina told FOX Business.
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Here are five financial mistakes he says Americans should avoid:
Not investing early
More than 40% of Americans say they cannot cover a $1,000 emergency expense with their savings. (iStock / Stock)
By 2025, 62% of Americans say they own stocks, according to Gallup.
“Many people between the ages of 30-40 keep their money in cash, missing out on the power of compounding,” says Yudina. “Time is the most important asset you have in investing, and delaying even a few years is one of the most expensive financial mistakes you can make.”
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Not prioritizing retirement savings
As of September 2025, 48% of Americans in their 40s and 44% of those in their 50s say they have no confidence that their savings will last in retirement or believe they may not be able to retire at all, according to the Pew Research Center.
“It’s easy to focus on short-term needs, but retirement requires decades of planning,” says Yudina. “Missing employer matches or delaying contributions can have a long-term impact that is difficult to recover from later. The statistics do not forgive: if you do not start in 30 years and remain consistent, no holding strategy fully compensates for the lost time.”
Taking on too many debts
Total US household debt rose by $191 billion, to $18.8 trillion in the fourth quarter of 2025, according to the Federal Reserve Bank of New York. (iStock / Stock)
Total US household debt rose by $191 billion, to $18.8 trillion in the fourth quarter of 2025, according to the Federal Reserve Bank of New York.
“Debt has become so familiar that young people stop questioning it. Whether it’s credit cards, inflation, or overspending on big buy-now-pay-later purchases, excess debt is quietly eating away at your ability to build real wealth,” says Yudina.
Not having an emergency fund
More than 40% of Americans say they cannot cover a $1,000 emergency expense from their savings, while nearly one-third lack enough money to cover even one month of living expenses, according to a US News survey conducted January 16–20, 2026.
“Unexpected costs are unavoidable,” Yudina said. “In today’s environment, with continued layoffs and economic uncertainty, this risk is even more apparent.
“Without a financial cushion, young professionals are forced to rely on high-interest debt or withdraw from investments at the worst possible time. Having a steady income may sound like security, but without an emergency fund, it’s fragile. One unexpected event can unravel years of financial progress.”
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Not planning their children’s education early
American families spent an average of $30,837 on college last year, a 9% increase from $28,409 the year before, according to Sallie Mae. (iStock / Stock)
American families spent an average of $30,837 on college last year, a 9% increase from $28,409 the year before, according to Sallie Mae.
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“Many parents think they will deal with college when the time comes. But education is one of the biggest financial obligations families face,” said Yudina. “The cost of college continues to rise, and many families underestimate how important time is. The earlier you start, the less painful it is.”
