Even as credit card debt and concerns about the cost of living mount, Americans are still spending on things that bring them joy.

They’ve just got a bit of guilt while doing so.

While 6% feel they are overspending on things that make them happy, 72% say they feel guilty when those purchases compete with other financial goals, according to a YouGov survey of more than 5,000 U.S. adults conducted for Ally Bank’s inaugural Cost of Life Today report, first shared exclusively with USA TODAY.

That tug-of-war helps explain why the average U.S. adult scored 54.2 out of 100 on Ally’s new “Joy Index,” placing consumers in “joy pressured” territory, meaning financial pressure is making joy harder to access and sustain. The survey found 77% of consumers reduce, delay or avoid spending on joy at least occasionally.

Spending might not be the end-all, be-all when compared with time with friends and family, the survey, which was conducted in July, found.

Affordability remains a constraint. Of respondents, 20% said it’s easy to cover essential expenses, and although most reported spending on joyful experiences each month, only 15% said those experiences are easy to afford.

“Worries about the cost of living are real, and because of them, people are getting more deliberate in their spending,” Lee Stafford, Ally’s chief economist, told USA TODAY. “A meaningful share are even cutting back on necessities to make room for the areas they value most. It’s not that people are spending carelessly; instead, they’re spending to protect something they’ve decided they can’t afford to lose.”

Can Money Buy Happiness?

Overall, consumers’ reported feelings of joy rose alongside their income levels, with a caveat.

Consumers with a “joy mindset” consistently scored higher than those without one, and their experience scores — which measure how often they feel grateful and optimistic — were nearly identical whether they made under $50,000 or above $100,000 each year.

Other factors being similar, consumers with an “appreciation for the everyday,” or a “joy mindset,” according to Ally, had higher Joy Index scores than those without the mindset.

“When you have that clarity of what’s most important to you, you’re able to transfer that into a life that creates joy,” Jack Howard, Ally’s head of money wellness, said. “Having that clarity and then making that connection creates that joy mindset.”

A positive attitude only goes so far. Even for consumers with a joy mindset, scores on the overall index — which also considers financial security — rise in line with income. For example, those who earned less than $50,000 annually but maintained a joy mindset scored 63 on the overall index, compared with 71.7 for people with the same attitude who earned more than $100,000.

Stafford said higher earners aren’t feeling joy more deeply but are paying less of an emotional and financial tax to get it.

“That’s where we’re seeing inequality persist today,” he said. “The gap isn’t the capacity for joy — it’s in the friction and the guilt you have to push through to reach it.”

Who Feels the Most Guilt Around Spending?

While 68% of consumers said they think they spend the right amount of money on joy each month, or close to it, 72% still feel guilty about it.

This guilt is particularly common among women. A quarter of women who responded felt a lot of guilt, and about 75% said they felt some guilt.

Lindsay Sacknoff, Ally’s president of consumer banking, said that may be because women often manage day-to-day household finances.

“If you think about playing that role, you see a lot of the earnings, the spending, the savings, the investing, and you see that big picture,” Sacknoff said, adding there may be a connection between “how much information and how many folks are relying on you in the household to how you feel about it.”

A little more than three-quarters of Gen Z and millennials both feel some amount of guilt spending on things that make them happy. But millennials are the generation most likely to feel a lot of guilt, at 23%. Gen X isn’t far behind, with 74% reporting feeling some guilt and 22% saying they feel a lot.

Baby boomers stand out. At 63%, most still report feeling some amount of guilt, though 32% said spending on joy is “completely worth the cost.”

“For that generation, you’ve had more experiences, more time to make money through the ups and downs,” Howard said. “Now, you’re enjoying the fruits of your labor.”

Which Generations Are Finding the Most Joy?

With the lowest guilt levels, boomers also ranked highest on the overall Joy Index, with a score of 57.1.

Despite making the least of any generation, Gen Z earned an overall Joy Index score of 55.2. Gen Z spends on joy most frequently and actively plans for it. At 56%, most have a dedicated line item for joy in their budget, compared with 46% of millennials, 32% of Gen X and 29% of boomers.

Boomers spend the most on joy each month, with an average spend of $298. Gen Z is not far behind at $295 per month. Millennials spend $287 on average, while Gen X spends the least, with an average of $259.

Gen Z may feel guilty because they recognize they’re making a trade-off between planning for the future and enjoying the present, according to Shikha Jain, a Simon-Kucher partner and lead of the consumer sector for North America.

“But a lot of younger people are also saying they don’t know what the future is going to hold and what life is going to have in store for them, and the way things are going, it’s not super hopeful,” Jain said. “So, why not spend today? … There’s a little bit of that YOLO effect going on.”

The survey found that overall, 54% of consumers try to balance enjoyment today and long-term financial goals, even if it means making slower progress.

Where Are People Pulling Back and What Are They Prioritizing?

Americans are still finding ways to spend on things that make them happy, but the money must come from somewhere.

While 47% said they look for lower-cost ways to experience joy and 42% said they save up to afford it, 20% said they cut back on necessities and 13% said they take on credit card debt.

The survey found that over the prior three months, consumers had dialed back spending in several areas. Of respondents, 38% cut spending on dining out, 34% reduced shopping or retail splurges, 27% spent less on entertainment, 25% cut back on travel, 21% reduced spending on hobbies and 21% cut home improvement projects.

The results suggest consumers often prefer to spend on things that bring them connection. Over the same three months, only 17% cut back on social time with friends, 11% reduced the amount they spend helping others and just 9% spent less on their pets.

“When Americans feel conflicted about spending on joy, they don’t just sit with the discomfort, they redirect it,” Stafford said. “People will sacrifice the material and the expensive before they give up rest, relationships and the everyday moments that actually sustain them.”

What Americans Consider ‘Luxury’ in 2026

Extra money, more time and fewer financial worries are what Americans consider signs of abundance, the survey found.

Asked “what feels like luxury today,” the top answer among respondents was taking a vacation. But the second most common answer was simply having money left over after paying bills at the end of the month.

“Having money left over means I have the luxury of choice,” Sacknoff said, adding that viewing vacations as a luxury highlights the value people place on experiences rather than material things.

Being able to save money while still enjoying life and eating out without worrying about the bill followed close behind the top two answers. Consumers also said it’s luxurious to have free time, spend money on hobbies and buy high-quality ingredients at the grocery store.

However, those luxuries aren’t what respondents said bring them the most joy. Spending time with family and their partner or spouse beat out all other answers, the survey found.

This article originally appeared on USA TODAY: Americans spend money to find joy. Then comes the guilt

Reporting by Rachel Barber, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect