More than a quarter of US adults are struggling financially. 72% of Americans reported “living comfortably” or “doing okay,” according to December 2023 data from the Federal Reserve.
The remaining 28% were either “just getting by” (19%) or “finding it difficult to get by” (9%).
The 72% at least doing okay is the lowest share since at the onset of the COVID-19 pandemic in April 2020. Prior to 2020, the rate hadn’t dipped that low since 2016.
Do Americans feel better or worse off financially than before?
The Federal Reserve tracks whether people feel their financial situations are improving or worsening in the US. In 2023, 31% of respondents felt they were worse off than the year prior. This is down from 35% in 2022, but still 11 points higher than the 20% of respondents who felt they were better off than a year ago.
From 2015 to 2021, more Americans felt their financial situations were improving than worsening. The opposite has been true in 2022 and 2023.
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What are Americans’ main financial challenges?
Over the past two years, more respondents cited inflation as the reason for their financial difficulties than any other cause. Inflation reached a 40-year high of 9.1% in June 2022 and has yet to return to the Fed’s target of 2%.
After inflation, Americans pointed to the costs of basic living expenses and housing as their top financial challenges.
Does education impact financial security?
Adults with higher levels of education were more likely to feel financially secure. In 2023, 87% of respondents with a bachelor’s degree or more reported doing at least okay, compared to 67% of people with some college or a technical or associate’s degree and 63% of people with only high school diplomas or GED.
The lowest rate of reported financial security was among people who did not finish high school or an equivalent: less than half reported doing okay financially.
All four cohorts reported a worsening financial picture from 2021 to 2023. Those without a high school diploma dropped just one percentage point and the other groups fell at least four points.
Do some racial groups feel better off financially than others?
Over the 11 years of available data, Asian adults have consistently reported the highest rate of financial security, followed by white adults. Black and Hispanic adults reported the lowest rates of doing comfortably or okay.
In 2023, though, Black Americans were the only racial group that reported doing betterthan in the year prior, going from 64% to 68%.
Do parents feel they’re doing okay financially?
The financial picture is more difficult for parents living with children at home, and the gap between adults with and without children has widened: In 2023, 64% of parents reported doing at least okay, compared to 75% of all other adults.
That 11-point gap was matched only one other time over the last nine years of data, in 2020.
Economic Well-Being of U.S. Households in 2023
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FAQs
72% of Americans reported “living comfortably” or “doing okay,” according to December 2023 data from the Federal Reserve. The remaining 28% were either “just getting by” (19%) or “finding it difficult to get by” (9%).
How are most Americans doing financially? ›
Key Findings. 48.6% of Americans consider themselves to be “broke,” and 66.2% feel they are “living paycheck to paycheck.” There is a gender gap in the results: Females are more likely to consider themselves “broke” at 55.8%, compared to males at 41.1%.
How are we doing financially? ›
Current Financial Situation. At the end of 2022, 73 percent of adults were doing at least okay financially, meaning they reported either "doing okay" financially (39 percent) or "living comfortably" (34 percent).
Why are so many Americans struggling financially? ›
“Elevated prices have largely persisted, which means that Americans continue to face affordability challenges on a range of things both necessary and discretionary, including homes, vehicles, car insurance, food, electricity and travel.”
What is the average American financial situation? ›
73% of Americans have had debt at some point in their lives. The median age at which people go into debt for the first time is 23, and two-thirds of U.S. adults are in debt by age 30. Over one-third of Americans (37%) said they owe more money on their credit cards than they have in retirement savings.
How is the US doing financially? ›
Gross Domestic Product (Second Estimate), Corporate Profits (Preliminary Estimate), Second Quarter 2024. Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2024, according to the "second" estimate. In the first quarter, real GDP increased 1.4 percent.
How many people in the US live paycheck to paycheck? ›
More than 1 in 3 workers (34 percent) say they are living paycheck to paycheck. That means they have little to no money left over for savings after covering their monthly expenses. Nearly 6 in 10 Americans (59 percent) are uncomfortable with their level of emergency savings.
How are people living financially? ›
A LendingTree report released this week found that one-third of American households are financially insecure, meaning they find it somewhat or very difficult to pay for expenses like food, housing, car payments and medicine.
Are Americans financially stable? ›
Rising feelings of financial insecurity: Just 1 in 4 (25%) Americans say they are completely financially secure, down from 28% in 2023.
Is everyone struggling financially right now? ›
Almost half of Americans say they are having a hard time staying where they are financially, according to a new poll. The poll, conducted by Monmouth University's Polling Institute and released Wednesday, found 46 percent of Americans surveyed said they are struggling to remain where they are financially.
Schwab Survey Reveals That Americans Think It Takes $2.5 Million to Be Considered Wealthy in 2024.
What are the main reasons Americans have financial problems? ›
Make sure you check out the linked resources that could help you prevent and/or eliminate a specific financial stressor.
- Too much debt/Not enough money to pay debts. ...
- Lack of money/Low wages. ...
- College expenses. ...
- Cost of owning/Renting a home. ...
- High cost of living/Inflation. ...
- Retirement savings. ...
- Taxes. ...
- Unemployment/Loss of Job.
The reasons that most people struggle financially will vary on the individual case but can include a lack of financial literacy, a scarcity mindset, self-esteem issues leading to overspending, and unavoidable high costs of living.
What is living paycheck to paycheck? ›
What Does It Mean To Live Paycheck to Paycheck? Americans living paycheck to paycheck spend nearly as much money as they earn every month – making it difficult to save for the future and putting vital necessities at risk if a payday is delayed.
How much money does the average American have in the bank? ›
According to data from the Federal Reserve's 2022 Survey of Consumer Finances, the average American family has $62,410 in savings, across savings accounts, checking accounts, money market accounts, call deposit accounts, and prepaid cards.
How many Americans have $1000 in savings? ›
Key Takeaways. More than one in four Americans (28%) have savings below $1,000. This is the case for 32% of Gen Zers, followed by Millennials at 31%, Gen X at 27% and Baby Boomers at 20%.
How much does the average American have money? ›
Frequently asked questions (FAQs) How much does the average American have in savings? Excluding retirement assets, the average American has $65,100 in savings, according to Northwestern Mutual's 2023 Planning & Progress Study.
Are Americans struggling in 2024? ›
Inflation is cooling, yet many Americans say they're living paycheck to paycheck. Even as inflation continues to cool into the second half of 2024, many Americans say they're still struggling to make ends meet.
What percent of the US is financially stable? ›
Rising feelings of financial insecurity: Just 1 in 4 (25%) Americans say they are completely financially secure, down from 28% in 2023.
Are Americans cutting back on spending? ›
Americans across all age groups have dramatically cut back on spending between April and June, a recent study from TransUnion found, as many remain concerned about the higher cost of living despite declining inflation.
