More Americans living paycheck to paycheck than 5 years ago, Bank of America data shows
Storch Advisors CEO Gerald Storch assesses the state of the consumer, provides his outlook for the holiday season, and reacts to the September retail sales report.
The share of U.S. households living paycheck to paycheck has grown across all income brackets over the past five years, according to a new study from the Bank of America Institute.
A new analysis released by the think tank on Tuesday found that more than a quarter of Americans, 26%, have necessary expenses that chew up more than 95% of their takehome pay, and nearly a third, 30%, of households spend upwards of 90% of their income on critical bills like groceries, housing, utilities, gas, insurance and child care.
A new Bank of America Institute study found more Americans are living paycheck to paycheck in 2024 compared to 2019. (iStock / iStock)
The data showed a 10% increase in those living paycheck to paycheck in 2024 compared to 2019.
Regardless of the study's definition, nearly half of Americans currently feel they are living paycheck to paycheck, the BofA Institute found. That number has been rising for at least the past two years.
Bank of America Corp.
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David Tinsley, senior economist at the Bank of America Institute and the lead author of the study, says it's hard to be precise on how much elevated inflation has played a role in the increase, but the rise in the prices of necessities such as groceries is clearly a very important factor.
Americans are increasingly living paycheck to paycheck according to a new study. (Amy Beth Bennett/South Florida Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
«For some households, the rises in their
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