Majority of millennials live paycheck to paycheck: survey

Most Americans are just scraping by, a distressing new survey has found.

According to a survey of 30,000 US residents, the majority of American consumers are living paycheck to paycheck, including 53 percent of upper-incomers, who make between $50,000 and $100,000 annually. The June report, created by economic data agency PYMENTS and financial tech company LendingClub, also found that an astonishing 70 percent of millennials — more than any other generation — are dependent on their next payday just to get by.

In total, 125 million US adults reported being reliant on their next paycheck and having just $3,928 in savings on average, as of May 2023.

Compared to millennials, 56.2 percent of generation Z are living paycheck to paycheck, as well as just under 40 percent of what the survey defines as baby boomers and seniors.

While the idea of living paycheck to paycheck is often associated with undesirable jobs, a lack of education and extreme poverty in the US, the reality is that many Americans “have good incomes and college degrees and still have little money left over after spending their regular earnings,” the report stated.

The report stipulated that this modern situation may significantly be caused by today’s high costs of living.

“The fact that so many Americans are living on very constrained budgets may have less to do with the income side of the household ledger and more to do with the expense side,” the report continued. “Consider the example of a 35-year-old with a college degree: This graduate could easily be earning more than $100,000 yet have expenses — such as a mortgage, student loan debt and a child — that could leave little money for major purchases or unanticipated events.”

Coronavirus pandemic-related job losses have also contributed to the current percentage of people experiencing financial instability, according to the report.

Living | New York Post

Related Post: