How Would You Spend a Surprise $1K? Here’s What Americans Said in New Survey

How Would You Spend a Surprise $1K? Here’s What Americans Said in New Survey

Elizabeth Guevara

Tue, August 25, 2026 at 7:34 PM GMT+3 3 min read

KEY TAKEAWAYS

• Paying down debt is the top priority for most generations if given an extra $1,000.

• Americans feel less confident about their finances in 2026, as high inflation and debt make it harder to invest in their future.

• Gen Z was just as interested in investing an extra $1,000 as paying down debt, and baby boomers were more interested in saving.

Hand most Americans a surprise $1,000 and they won't spend it or invest it—they'll put it toward getting out of debt.

That's the top answer across every generation in a Mutual of Omaha survey of 1,000 adults when asked how they'd spend a surprise influx of $1,000. A quarter of respondents said they would use it to pay down debt, a sign that consumers are relying more on credit to afford higher costs.

It also aligns with the survey's other major finding: more respondents chose having little or no debt (34%) than any other option for what would make them feel financially secure.

Why This Matters

Where you'd put a sudden cash influx shows your priorities: paying debt first means you're paying interest you can't afford, saving first means you think your cushion's too thin.

Confidence in being financially prepared is slipping: Only 21% of respondents in 2026 said they were stable, down from 26% in 2023.

While buying a home and making other major financial decisions could make them feel more confident, nearly half of respondents said they're waiting for a more stable economy. Gas prices have spiked since the start of the war in Iran. And though inflation has cooled, it remains well above the Federal Reserve's 2% target.

"It's hard to see a way of getting ahead when everything goes up in price and you can never catch up," one Gen X woman told surveyors.

How Each Generation Would Spend the $1,000

Millennials (1981-1996) and Gen X (1965-1980) were the most interested in paying down debt among generations, according to Mutual of Omaha.

Those two generations also carry the most debt, ahead of Gen Z (1997–2012) and baby boomers (1946–1964), per Federal Reserve Bank of New York data.

Gen Zers were just as likely to want to pay down debt with a surprise $1,000 as use it for everyday expenses or invest it. That generation is also far more likely to invest than any other, which aligns with findings from a JPMorgan Chase Institute survey showing Gen Zers invest in the stock market at much earlier ages than previous cohorts.

Meanwhile, older generations were more likely to say they'd save the money, including about three in 10 baby boomers, many of whom are of retirement age. They were the only generation that ranked saving ahead of paying down debt.

Boomers may be looking to make up for lost time: 71% of retirees said they wished they had saved more while working, according to a recent TIAA Institute survey. With roughly 70% of Americans ages 65 to 74 out of the labor force, according to the Bureau of Labor Statistics, it's a generation mostly past its earning years.

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