Operation HOPE Fourth Quarter 2025 Research Finds Respondents Cutting Holiday Spending Due to Increased Financial Challenges but Staying Optimistic About 2026

Operation HOPE, a national nonprofit dedicated to helping low- and moderate-income Americans thrive in an ever-changing economy, today released the fourth quarter 2025 results of The HOPE Insider, a comprehensive survey tracking financial sentiment among the organization’s broad client base. The latest findings revealed that while many clients expect to spend less this holiday season amid greater personal financial strain and broader macroeconomic concern, they continue to express strong optimism about improving their own financial wellbeing in the year ahead.

Key Fourth Quarter 2025 Findings:

1. Operation HOPE clients plan to spend less this holiday season

• 79% of respondents plan to spend less on holiday purchases this year compared to last year
• This correlates with an increase in respondents saying they are worse-off financially than they were a year ago (44% now compared to 33% at the same time last year)

2. Economic pressure prevents saving for emergencies

• Only 29% of respondents feel confident they could handle a major, unexpected expense, such as a large medical bill
• This concern aligns with broader financial strain – with 80% of respondents saying they or their families are living paycheck to paycheck, an 8-point increase from this time last year
• Among those employed, 87% report that their income is not keeping pace with the rising cost of living
• Respondents cite pressure from external factors such as housing affordability, with just 38% saying they are optimistic that housing prices in their communities will allow for increased homeownership over the next year, a decline of 10 points from last year

3. The future of jobs remains unclear

• Respondents are split on the impact of artificial intelligence on their jobs in the coming year with 48% saying they are somewhat to very concerned and 52% saying they are not too concerned or not concerned at all
• Among those currently employed, 60% report being satisfied with their jobs overall
• 80% of respondents are optimistic that their work or career will improve over the next year

4. Personal debt levels are higher than last year

• 55% of respondents report their personal debt increased in the past three months, up from 48% last year
• Looking ahead, 23% are most concerned about rising debt levels in the next three months with 42% saying they are worried about the cost of everyday goods
• Grocery costs remain a major driver of financial strain with 70% of respondents saying that food and groceries have become harder to afford in the past three months, up from 60% earlier this year
• More than half of respondents report that housing has become more challenging to afford this quarter

5. Clients are hopeful for a better year in 2026

• 76% of clients are somewhat or very hopeful that their financial wellbeing will improve in the new year, despite ongoing economic challenges
• This optimism reflects the impact of personalized coaching and financial wellbeing tools that Operation HOPE clients receive
• From debt-reduction, improved credit scores, and budgeting tools to build up emergency savings, Operation HOPE has been a driving force in helping thousands navigate financial instability

About The Hope Insider

The HOPE Insider is a quarterly survey conducted by Operation HOPE’s research team since November 2023. The fourth quarter 2025 survey gathered insights from nearly 2,000 adults, small business owners and entrepreneurs who have used Operation HOPE’s financial wellness services. The survey explores key topics including housing, debt, employment, small business ownership, and economic optimism. Designed to capture the real-time financial sentiment of everyday Americans, The HOPE Insider serves both as a barometer of economic wellbeing and a guide for programs that meet clients where they are.

About Operation HOPE, Inc.

Since 1992, Operation HOPE has been moving America from civil rights to "silver rights" with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $3.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information: OperationHOPE.org. Follow the HOPE conversation on Twitter, Facebook, Instagram or LinkedIn.

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