Gerald Store, CEO of Store Advisors, assesses the state of the consumer, provides an outlook for the holiday season and reacts to the September retail sales report.
The percentage of U.S. households living paycheck to paycheck has increased across all income groups over the past five years, according to a new study from the Bank of America Research Institute.
More than a quarter of Americans, or 26%, have essential expenses that account for more than 95% of their take-home pay, and nearly a third of households, or 30%, have a new analysis released Tuesday by the think tank. It was revealed that he had spent over 20 million yen. 90% of their income goes toward essential bills like groceries, housing, utilities, gas, insurance, and childcare.
A new study from the Bank of America Research Institute finds that more Americans will be living paycheck to paycheck in 2024 than in 2019. (license/image)
According to the data, the living salary in 2024 increased by 10% compared to 2019.
Regardless of the study's definition, nearly half of Americans currently feel like they're living paycheck to paycheck, the BofA Institute has found. This number has been increasing for at least the past two years.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BAC | bank of america corporation | 45.03 | +3.15 |
+7.51% |
Inflation will cut retirement plans by $250 billion despite growth in retirement accounts, experts say
David Tinsley, senior economist at the Bank of America Research Institute and the study's lead author, said it's difficult to say exactly how much the rise in inflation contributed to the increase, but He said the rise in prices of essential goods was serious. Obviously a very important factor.
Americans are increasingly living beyond their paychecks, according to a new study. (Amy Beth Bennett/South Florida Sun Sentinel/Tribune News Service via Getty Images/Getty Images)
“For some households, income growth has pretty much kept pace with inflation and that will protect their finances,” he told FOX Business. “However, for some people who are already living paycheck to paycheck, this may not be the case, meaning more people will be caught in the net.”
As expected, low-income households have been hardest hit, with 35% of households earning less than $50,000 a year falling into that category, but after at least 20% of all income brackets have made their necessary expenditures, little remains. This includes households with annual incomes of $150,000 or more.
Inflation has left Americans with a record $1.14 trillion in credit card debt.
The percentage of households living paycheck to paycheck also increased with each generation from Gen Z to the baby boomer generation, but decreased for some households born before 1946.
A new study from the Bank of America Research Institute finds that the share of people living paycheck to paycheck increases with each generation up to the baby boomer generation, then declines slightly thereafter. (Tom Williams/CQ-Roll Call, Inc, Getty Images/Getty Images)
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“Price increases are affecting all incomes and generations, so it is not surprising to see some increase in the proportion of people living paycheck to paycheck across these cohorts,” Tinsley said. . “Housing costs are an important factor, and older generations and higher income earners often have large mortgages, so some people can live paycheck to paycheck even with higher wages.”
