Babies, Homes, Retirement, Business Ventures – All major moves tell BI that Americans are holding back as US reels due to economic uncertainty.
Tariffs are planning to raise prices for everything from food to cars, and many are concerned about their livelihoods, from cutting back to federal spending. Limbo, a federal student loan, is also wondering how millions of people will pay off their debts.
“It feels like I’ve just built my life here,” said the 28-year-old, 28, of Washington, D.C., who may have to step down from his government job and move for finances. “I was actually trying to own a house.”
Some people are worried about the recession. Although the US is not one yet, the main indicator of consumer sentiment hit its lowest level in March in three years, with consumer spending weaker than expected last month. Meanwhile, closely monitored inflation metrics have seen the best jumps of the year. Economists say these conditions make it less likely that people will make large purchases and take economic risks.
Some Americans also supported Trump’s recent cost-cutting measures and told BI that they had no plans to adjust their jobs or savings, but they had six shared stories about how they had kept down major milestones.
Millennials are starting their families amidst uncertainty about student loans
Florence Thompson feels stuck. The 39-year-old wants to buy a house and have a baby, but she doesn’t know what the future monthly student loan payments will look like. She said she hopes they will stay in the hundreds.
Thompson is registered in the Public Service Loan forgiveness program and will allow student debts for government and nonprofit workers after 10 years of eligible payments. Trump is taking steps to limit program eligibility. This could ban some borrowers from future relief.
Thompson is also taking part in a save plan created by President Joe Biden to make monthly payments more affordable to borrowers. Since July, she and the 8 million registered borrowers have been stuck in tolerance after SAVE was blocked in court. Thompson was unable to make payments or earn PSLF credits while the lawsuit was occurring. Now, Thompson doesn’t know when he’ll need to add his loan payments to his budget, and how many of them will be. The Trump administration’s recent decision to dismantle the Department of Education has heightened this uncertainty, she said. It complicates her plans to buy a house and start a family.
“I have the money to pursue an IVF, I have the money to buy a house,” Thompson said. “But it’s like the sword hanging above your head doesn’t know when your monthly expenses will increase. It’s just uncertainty and I know people are in a much more difficult position than I do. It’s not fair and not right.”
Thompson is at odds until she finds out what happens with student debt. “It’s not that you really have to save money, you really need to save money, you don’t spend it on what I want to spend on,” she said.
Federal employee leaves a $100,000 salary at the table and worries about the future of her career
28-year-old Ashley Shannon quit his job in the federal government to cut Trump. Photo courtesy of Ashley Shannon
Ashley Shannon filed his resignation letter last month. The 28-year-old was a lawyer in his second year at the Department of Justice’s Federal Prisons Bureau. She said she felt her work made sense. Her work helped her fight mass incarceration and disproportionately affected black and brown people.
However, as news flooded with firing federal probation workers, Shannon made the tough decision to leave her role.
“At the top of the agency, they told us there was a high chance you would leave or you would be fired and pushed out,” she said.
The career paths of black women in civil law are more restricted than federal workers, and Shannon was excited to build a career in the public interest. She earned $100,000 a year and built her life in Washington, DC. I was hoping to buy my first house soon. Shannon has now been unemployed since March 5th. If she is unable to find a job by the end of April, she will need to return to Chicago to live with her parents.
“It’s a very defeated feeling as a very new lawyer,” she said. “I have to go back with my family, find another job and pretty much resume my entire life.”
General Zell returned with his parents to save for international moves
Last fall, BriO. returned with her parents. The 23-year-old works in finance in Charlotte, North Carolina. She never imagined spending her younger years at a young house, but she said that was her best option for saving money.
Related Stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Bri knew that at some point in her life she wanted to live abroad. It is an opportunity to experience a new culture and its eyes are turning to Spain. But she said Trump’s return to the oval office accelerated her timeline. She is now trying to save $50,000 by 2026, so she could probably move out of the US forever.
As a young queer woman, Bri said she doesn’t feel safe living under the Trump administration, especially if she chooses to marry or start a family one day. The government “establishing policies against us in the queer community has impacted our lives,” she said.
She said she now sacrifices some of her independence by living with her family, which is valuable to her finances. Being at home means allowing her to save money on rent and other expenses in the end for the move.
“I want to stay in a country where my friends and my whole family are,” she said, adding that “I am disappointed to leave because of fear.”
I’m not sure if Gen Xer will be able to retire soon
Margarita Sdoukos, 49, was planning to retire early, but lost money in the stock market. Photo courtesy of Margarita Sudukous
Margarita Sudokos, 49, thought she would retire early. She was sure she and her husband had enough strong nest eggs to work for six years. Living under their means, savvy investments and careful savings habits, the couple felt financially comfortable.
Now Sdoukos is not sure if she will retire completely. An Illinois resident told BI that she and her husband have lost “tens of tens of thousands of dollars” in the stock market since Trump took office in January, and that they are moving towards safer investments for the 401(k) even if they are less profitable. She cashed out her teacher’s pension and put it in the IRA due to “government uncertainty.” She is worried about potential changes in Social Security and now hopes to continue working as long as possible.
“We’re not even thinking about resigning now,” she said.
Related Stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Business owners are worried about her next step
Jessica Deseo, 40, doesn’t know if she should continue working steady or go freelance. Photo courtesy of Jessica Deceo
Jessica Deseo, 40, has been in the design industry for nearly 20 years. She is a first-generation California-based immigrant, mother, and balances her LLC with her role as a 1,099-person employee of fellow creatives.
As economic policies change rapidly under Trump, Deseo is at the intersection of her career. Go solo with her business or balance her job with freelance.
“It’s really, really difficult while I’m realising it,” she said.
Diceo said he wanted to spend the energy and money to grow his business, but that comes at a cost. She said she is worried that potential clients won’t have the extra budget to hire her as a freelancer, and going out completely on her own is an even greater financial risk. Now she is cautious about spending and salvation as much as possible.
“You look at the economy around you and you’re just ‘Yes, everyone’s been fired,'” she said.
Baby boomers are postponing movements and saving social security revenues
Kathy Heller, 67, is more dependent on Social Security and spending less. Photo courtesy of Cathy Heller
Kathy Heller, 67, wanted to leave her studio apartment in Pennsylvania and buy a new home. However, she said recent changes in the stock market and her fears about the future of social security have made her feel that it may no longer be possible.
“For the last few years I’ve been wanting to move, but now I can’t,” Heller said. “Everything has changed.”
Working as Attorney General, Heller ate some of her retirement savings after her husband got sick. She works almost full-time as a real estate agent to supplement her monthly Social Security survivor benefits. She said she would have to wait four hours on the phone to contact a Social Security representative, and she said she was worried that her finances might look like months from now, especially if Social Security is somehow confused.
“My plan is to save $1,000 a month from my Social Security checks, but I’m living alone,” Heller said. “If you don’t have savings or monthly income, you’re screwed right now.”
Any hints? Please contact these reporters by email or signal at allisonkelly@businessinsider.com or alliekelly.10. jkaplan@businessinsider.com or julianakaplan.33; asheffey@businessinsider.com or asheffey.97; jdeng@businessinsider.com or @jdeng.20; or nsheidlower@businessinsider.com. Use your personal email address and unprocessed devices. Here’s a guide to sharing information safely:
