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A majority of middle-income Americans say they are struggling to keep up financially as inflation remains high for years in the U.S., with two-thirds reporting they feel left behind by the rising cost of living.
it is Primerica Financial Security Monitor (FSM) The Q2 2024 survey surveyed more than 1,000 U.S. adults with incomes between $30,000 and $130,000.
The soaring prices of everyday items over the past few years have dealt a major blow to household finances. (Getty Images/Getty Images)
Of those surveyed from June 8 to 11, 66% said their income was not keeping up with living expenses, and 48% said they had either cut back on expenses or stopped saving altogether to make ends meet.
The data aligns with the findings of another recent survey by the National True Cost of Living Coalition, which found that 65% of Americans whose incomes exceed 200% of the national poverty line (about $62,300 for a family of four, often considered middle class) say they are struggling financially.
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Primerica’s analysis found “significant shifts in the spending and saving habits of middle-income households,” with 80% of households saying they began preparing meals at home rather than eating in restaurants or ordering takeout over the past year.
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The top reason for eating out less is budget concerns, with 72% saying it was the main factor in their decision. 62% of respondents said “unreasonably high” restaurant prices were the reason they were eating out less.
“Middle-income households continue to adjust their budgets to manage rising living costs,” said Primerica CEO Glenn Williams. “Unfortunately, their difficult decisions include increasing credit card usage and reducing savings for the future, both of which can have a negative impact on their long-term financial health.”
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The ongoing inflation crisis has resulted in most households spending more each month. While the Consumer Price Index is down from a peak of 9.1%, it is still significantly higher than pre-pandemic levels, and inflation is up more than 18% since January 2021, before prices began to soar.
A person shops at a supermarket in Manhattan, New York City, USA on June 10, 2022. (REUTERS/Andrew Kelly/File Photo/Reuters Photo)
Food prices are up more than 21% since the start of 2021, while housing costs are up 18.37%. Energy prices are up 38.4%, according to FOX Business calculations.
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With inflation still high, the typical U.S. household had to pay $227 more per month in March to buy the same goods and services as a year ago. Americans are paying an average of $784 more per month compared to the same period two years ago, and $1,069 more than they were paying three years ago.
On the other hand, taking inflation into account, real wages would fall by 2.2% between January 2021 and May 2024.
FOX Business’ Megan Henney contributed to this report.
