Despite rising concerns about credit card debt and the increasing cost of living, many Americans continue to spend on purchases that bring them joy, albeit often accompanied by feelings of guilt. A recent YouGov survey of more than 5,000 U.S. adults, conducted for Ally Bank’s inaugural Cost of Life Today report, reveals the complex relationship between financial pressure and spending on personal happiness.

The survey found that while only 6% of respondents believe they are overspending on joyful purchases, a significant 72% experience guilt when those expenses conflict with other financial priorities. This dynamic has led analysts to describe many consumers as “joy pressured,” highlighting that financial constraints are making it tougher for people to access and sustain happiness through spending.

Ally’s “Joy Index,” which measures individuals’ sense of happiness relative to financial security, averaged 54.2 out of 100 among U.S. adults, placing most in this “joy pressured” category. Approximately 77% of respondents reported occasionally reducing, delaying, or avoiding spending on joy due to money concerns. Only 20% said covering essential expenses is easy, and just 15% described joyful experiences as affordable, underscoring that financial limitations remain a significant constraint.

According to Ally’s chief economist, Lee Stafford, people are becoming more deliberate about their spending, with some even cutting back on necessities to prioritize areas they value for emotional well-being. “It’s not that people are spending carelessly,” Stafford noted. “They’re spending to protect something they’ve decided they can’t afford to lose.”

The survey also examined the impact of income and mindset on joy. While higher income levels generally correlate with increased reported happiness, the presence of a “joy mindset”—defined as an appreciation for everyday experiences and clarity about what matters most—played a substantial role. Respondents with this mindset scored higher on the Joy Index regardless of income, although those earning above $100,000 still reported greater overall scores, mostly because they face less financial friction and guilt in pursuing joy.

Feelings of guilt around joy-related spending were particularly prevalent among women, with about 75% reporting some guilt and a quarter indicating strong guilt. Lindsay Sacknoff, president of consumer banking at Ally, suggested this may reflect women’s frequent role in managing household finances, which can amplify their awareness of spending’s impact.

Generational differences emerged as well. Millennials and Generation Z displayed high rates of guilt—over 75%—with millennials most likely to feel intense guilt. In contrast, baby boomers reported lower guilt levels and ranked highest on the Joy Index. Boomers also tend to spend the most monthly on joyful activities, while Generation Z allocates a significant share of their budget to joy despite earning less overall. Experts attribute younger generations’ guilt partly to uncertainty about the future, leading to a "YOLO" (you only live once) mindset that prioritizes present enjoyment despite financial concerns.

To maintain joyful spending, Americans are employing various strategies. Nearly half seek lower-cost ways to derive happiness, and 42% save up for joyful experiences. Yet, some consumers report cutting back on necessities (20%) or accumulating credit card debt (13%) to afford such spending. Over the previous three months, many dialed back on dining out (38%), retail shopping (34%), entertainment (27%), and travel (25%), but sacrifices were less frequent in areas linked to social connection, like time spent with friends or pets.

When asked what constitutes a luxury today, respondents most commonly cited taking vacations, followed by having money left over after paying bills. The ability to save while enjoying life and eating out without financial worries also ranked highly. However, spending time with family or a partner was identified as the greatest source of joy, surpassing material or experiential luxuries.

Overall, the survey highlights the balancing act many Americans face as they navigate financial challenges while striving to maintain personal happiness and meaningful connections.