Story at a glance
- A report from the LendingClub Corporation found that the number of Americans living paycheck to paycheck increased to 61 percent in June — up from 55 percent a year prior.
- The largest short-term increase in consumers living paycheck to paycheck was among those earning between $100,000 and $150,000 annually, rising by 11 percentage points from May to June 2022.
- Around 41 percent of workers earning between $150,000 and $200,000 said they were living paycheck to paycheck in the same timeframe.
More Americans are living paycheck to paycheck as average savings decline and consumer prices are rising, according to a recent report.
The report from the LendingClub Corporation found that the number of Americans living paycheck to paycheck increased to 61 percent in June — up from 55 percent a year prior.
“What a difference a year makes. Last summer we were all worried about how quickly the economy would recover. Now, as inflation continues its upwards swing, consumers are finding it more difficult to manage spending and are eating into their savings as financial pressures mount,” said Anuj Nayar, LendingClub’s Financial Health Officer, in a news release.
“That said, consumers are not yet slowing down their spending habits, despite the rise in the cost of living. Not only is it going to be difficult for them to handle future emergency expenses, but even foreseen payments like education, student loans, or housing expenses may be harder to balance for the everyday American consumer.”
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There are also short-term changes in Americans’ financial outlooks, as average savings are falling quickly, according to the report. The report shows a $517 decline from $11,724 in May 2022 to $10,757 in June 2022.
Meanwhile, the largest increase in consumers living paycheck to paycheck was among those earning between $100,000 and $150,000 annually, rising by 11 percentage points from May to June 2022. Around 41 percent of workers earning between $150,000 and $200,000 said they were living paycheck to paycheck.
An estimated 13 percent of American consumers reported spending more than they earned in the past six months.
The Paycheck-To-Paycheck Report: The Consumer Savings Edition is based on a survey of 3,583 U.S. consumers, which was conducted from June 8 to June 27.
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Published on Aug 01,2022