Financial Pressure Is Mounting: What Middle-Class Americans Are Giving Up To Pay Utility Bills

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Rising prices on everything from groceries to gas and electricity are putting serious strain on household budgets. With utility bills ranking high among their concerns, many families are rethinking their spending just to keep the lights on. To understand how middle-class Americans are coping, we surveyed more than 1,000 people across different generations. The results show growing financial stress, increasing debt, and tough decisions about where their money goes.

Key Takeaways

• Grocery prices (71%) and utility bills (50%) were the top rising financial stressors among middle-class Americans over the past year.
• 1 in 5 aren’t sure if they can cover their monthly bills over the next 6 months.
• Nearly 1 in 3 (29%) saw their monthly utility bills go up by at least $50 in the past year.
• In the past year, half used a credit card and 11% took out a loan to cover utility bills.
• 46% skipped saving for retirement and 42% delayed paying down credit card debt to afford rising utility bills.
• 79% say rising utility bills have increased their anxiety over the past year.

The Financial Concerns Keeping the Middle Class Up at Night

For many in the middle class, simply staying afloat has become a serious struggle. High prices are touching nearly every part of household budgets, and utilities are right at the top.

Over the past year, 71% of middle-class Americans said grocery costs have become a bigger burden, while 50% pointed to rising utility bills. This combination of higher everyday expenses is forcing many families to stretch their budgets more than ever.

Gen X is feeling the strain most, with 23% saying they’re not confident they’ll be able to make ends meet over the next six months. Millennials are close behind at 21%, followed by 16% of Gen Z expressing the same concern. The pressure is also taking a toll on mental health — 75% of both Gen Z and millennials said financial stress has negatively affected their well-being in the past year.

The Cost of Keeping the Power On

Rising utility bills are hitting households where it hurts, and families are going to great lengths to keep the power on.

Nearly 1 in 3 people said their monthly utility bills jumped by $50 or more over the past year. To manage the jump, half of all respondents turned to credit cards, while 11% took out loans. Millennials were most likely to lean on credit cards (56%) and loans (13%) to stay current.

Dipping into savings to pay for electricity was another strategy for 43%. Among Gen Z respondents, that number was even higher at 50%. To afford their utility bills, 46% of middle-class Americans skipped saving for retirement, 42% put off paying credit card debt, and 33% stopped saving for a down payment on a home or other large purchase.

The emotional burden is heavy. A majority of respondents (79%) said utility bill hikes have increased their anxiety. Millennials were the most affected at 82%, followed by Gen X (77%) and Gen Z (75%).

The Utility Survival Plan

With high utility bills becoming a long-term reality, many are getting creative and making sacrifices to get by.

Among Gen Z, 38% said they would consider downsizing to reduce their bills, compared to just 23% of Gen X. Gen Z was also the most likely to already be working extra hours (16%) to help cover the cost of electricity.

When it comes to finding ways to save, the middle class often turns to each other. About a quarter (27%) seek energy-saving advice from friends or family, while others consult Reddit (26%) or their local utility provider’s website (25%).

Social media is also playing a growing role, especially for younger generations. Gen Z reported the highest use of Reddit (36%) and TikTok (17%) for energy-saving tips. However, only 9% of all respondents said they rely on TikTok, showing that more traditional sources remain the go-to for most people.

Conclusion

Middle-class Americans are under growing financial pressure as rising utility bills compound other everyday expenses. Many are turning to credit, dipping into savings, or delaying long-term goals just to afford electricity. The emotional and mental health toll is significant, with anxiety on the rise across all age groups. If you’re feeling the strain, consider connecting with your utility provider about payment plans, exploring assistance programs, or adopting energy-saving habits to help ease the burden.

Methodology

We surveyed 1,006 middle-class Americans to explore how rising utility bills and related costs are affecting them. The generational breakdown is as follows:

• Gen Z: 15%
• Millennials: 54%
• Gen X: 24%
• Baby boomers: 7%

The data was collected in May 2025.

About Payless Power

Payless Power provides affordable prepaid electricity plans to Texas residents, helping customers manage their energy use without credit checks or hefty deposits. Whether you’re struggling with rising utility bills or simply looking for more control over your energy costs, Payless Power offers flexible options designed to fit your budget. Learn more about our no-deposit plans and how we help Texans save.

Fair Use Statement

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