President Donald Trump has been in office for his second nonconsecutive term for five months. Since January, the U.S. economy has experienced significant shifts.
On April 2, his administration introduced sweeping tariffs, which affected global trade. The stock market became more volatile, making short and long-term investment predictions more difficult, and inflation continues to be a concern.
U.S. consumers are reacting to the economic conditions.
Gallup’s annual Economy and Personal Finance survey, conducted in April, discovered that Americans have gone from being mostly positive about the direction of the stock market and economic growth in the days after Trump took office to being more pessimistic today.
Here’s how consumers are adjusting their financial habits and plans to stay secure in a particularly uncertain economy.
Adding More to Savings
Boosting savings is a common goal for Americans, but now people are actually doing it. U.S. consumers are trying to save more so they can have enough cash on hand to manage unpredictable events.
A 2025 Wells Fargo Money Study found that 87% of the survey respondents say now is the right time to save money, and 38% are following through.
“People are finally treating savings like a necessity instead of a New Year’s resolution,” says Christopher Naghibi, executive vice president and chief operating officer of First Foundation Bank in Irvine, California. “The volatility is forcing people to become scrappier and a lot more intentional with their money. It’s not just a vibe shift. It’s a survival strategy beginning.”
The general rule of thumb given by financial experts is to have at least three to six months worth of essential expenses tucked in a liquid savings account to guard against emergencies.
But where to put it all? Naghibi recommends high-yield savings accounts. Funds are FDIC insured up to $250,000 (per depositor, per insured bank) and there are no early withdrawal fees.
[Related:How Much Should You Save In an Emergency Fund? Here’s What Financial Experts Say]
Switching to Safer Investments
When investing in the stock market, there’s always a certain level of risk, but after the Trump administration’s policy on tariffs was announced, the S&P 500 took a serious dive. On April 4, 2025, the index dropped 6%.
Despite a partial rebound, some rattled investors began to explore safer investment territory.
According to Naghibi, the shift toward liquidity is ramping up.
“Cash is cool again and gold is hitting all-time highs,” he says. “Risk appetites are dialing back too as retail investors who once ‘YOLO’d’ into crypto are now flirting with bonds and high-yield savings like it’s 1999.”
Tracey Franks, a financial writer based in San Diego, is a long-term investor, but decided to make some portfolio adjustments to offset losses. “Before Trump took office, I had a goal for one of my retirement accounts to hit a certain value,” she says. “It’s primarily equities, so I was going to significantly trim it down and sit in cash for a while.”
Safety is compelling, but Naghibi urges people to stay in the market for the long haul so their gains outpace inflation. “The best hedge against inflation is to keep investing,” he says. “Don’t stop contributing, especially into a 401(k) if your employer is matching.”
Which is what Sarah Doheny, a publicist principal at yubpr, a firm based in Hamburg, Pennsylvania, has done, making a point to stay calm despite recent losses.
“Like everyone we took hits, but I’m holding firm for now,” she says. “It’s out of my control, so losing sleep over it won’t help.”
Making Different Spending Decisions
The Gallup poll found that inflation is most often named the top financial problem by Americans at all income levels, though 38% of middle-income earners mention it more than lower- or upper-income people (27% and 24%, respectively).
As of April, 2025, 89% of Americans believe tariffs will result in higher prices on the products they buy, causing deep concerns about how people will maintain their standard of living.
Smarty, an online shopping platform, conducted a consumer sentiment shopping survey in February, shortly after Trump took office. It found that consumers are bracing for price hikes. Forty percent of the respondents planned on switching to cheaper brands and 49% said they would be buying less frequently. Half were considering preowned goods or local alternatives and 20% were rethinking their travel arrangements.
Altered consumer decisions aren’t entirely because of inflation, however. There is also uncertainty about government programs that the Trump administration is changing.
Meg Banta serves on the State Council for Developmental Disabilities for San Diego and Imperial Counties, and is a caregiver, conservator and parent of a 26-year-old developmentally disabled daughter.
“I canceled a trip to Europe based on threats to cut Medicaid for my differently abled daughter,” Banta says, explaining that the public funding is now at risk, so she is changing her plans.
Regarding home buying, Tatiana Zagorovski, a St. Louis-based real estate investor, says economic concerns are overblown.
“Some people are holding off on buying because they believe interest rates will go down, while others are still looking aggressively because they can always refinance later and they know home prices will continue to go up,” Zagorovski says.
“I think a lot of the people who are talking about slowdowns don’t really know what they’re talking about, and they’re just listening to the fearmongering we see in the news and on social media,” she adds.
[Read: What Will Cost Most Under Trump’s Tariffs?]
Increasing Income
The U.S. Bureau of Labor Statistics reported April’s unemployment rate at 4.2%, which was unchanged from the previous month. However, some indicators are pointing to trouble ahead.
In April, the ADP Payroll Report showed private-sector job growth falling to just 62,000, a sharp decline from the 147,000 projected jobs in March. Employers’ nerves about how the tariffs will affect business are a factor in the slowdown.
Now is the time to earn as much as possible, creatively. Naghibi is optimistic.
[READ: 7 Things to Know Before Starting Your Side Hustle]
“Americans are rewriting their financial playbooks in real time,” he says. “Income-wise, side hustles are the new 401(k). I know folks with six-figure W-2s launching Etsy stores, coaching on LinkedIn or building podcasts.”
So, as the economy is in flux, Americans are taking steps to adapt and thrive.
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How Trump’s Economy Is Changing Americans’ Financial Plans originally appeared on usnews.com
