Are 77% of Americans anxious about their financial situation?
Indeed, most U.S. adults (76%) feel at least some level of anxiety about their personal finances, according to a November 2023 survey by Sleepfoundation.org.
| Financial Behaviors in the Current Economy | All | Young Affluent |
|---|---|---|
| Worrying more about money | 57% | 42% |
| Feeling more nervous about debt | 45% | 27% |
| Delaying some life plans | 45% | 27% |
| Making tough financial choices | 45% | 39% |
According to a recent Ramsey Solutions study, 34% of survey respondents indicated that they were either facing financial struggles or were actively in crisis. That's a huge percentage of people -- more than one-third of all respondents -- who are not feeling good about their personal finances.
The research sheds light on the prevalence of negative feelings and angst related to financial matters, with approximately 65% of adults admitting to experiencing negative thoughts, flashbacks and anxiety when dealing with financial issues.
Bankrate's survey highlights that 72 percent of Americans don't feel financially secure, with only 28 percent claiming complete financial security.
A full third of respondents, 33%, reported feeling financially insecure—up from 27% in 2023, and the highest share since Northwestern Mutual began measuring financial security in 2012. Just 41% of respondents reported feeling very financially secure, the smallest share in the report's history.
About 41% of respondents said they want to save more money, 38% said they want to pay down debt, and 30% said they want to spend less money. More financial stress to come: 40% of respondents said they were worried about inflation for 2024, and nearly a third said their relationship with money is stressful.
After inflation, high interest rates, unattainable housing prices and other economic factors, 50 percent of U.S. adults say their overall personal financial situation is worse than it was in November 2020, according to October 2023 Bankrate polling.
Despite positive economic indicators like a robust stock market and cooling inflation, financial insecurity is still pervasive in the United States. The high cost of living, wealth inequality and job market uncertainty have all contributed to financial vulnerability, even among wealthy families.
Both median and average family net worth surged between 2019 and 2022, according to the U.S. Federal Reserve. Average net worth increased by 23% to $1,063,700, the Fed reported in October 2023, the most recent year it published the data. Median net worth, on the other hand, rose 37% over that same period to $192,900.
What are Americans anxious about?
Americans Express Worry Over Personal Safety in Annual Anxiety and Mental Health Poll. Washington, D.C. — The results of an annual poll conducted by the American Psychiatric Association show that 70% of U.S. adults say they feel anxious or extremely anxious about keeping themselves or their families safe.
Financial anxiety stems from an uncertainty of what the future holds. It's a fear of not having the resources available to meet your needs or face challenges that lie ahead.
There are many potential causes of financial anxiety, though they are typically related to existing money troubles or a history of uncertainty around finances. This can include: Growing up in poverty, or in a household where money was often scarce.
$80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.
| RANK | STATE | INCOME REQUIRED |
|---|---|---|
| 46 | Alaska | $71,570 |
| 47 | New York | $73,226 |
| 48 | California | $80,013 |
| 49 | Massachusetts | $87,909 |
According to the U.S. Bureau of Labor, the average U.S. annual salary in Q4 of 2023 was $59,384. This is up 5.4% from the same time period in 2022 when the average American was making $56,316 per year. Average weekly earnings reached $1,142, while the average American made $4,949 per month in Q4 of 2023.
An estimated 19.1% of U.S. adults had any anxiety disorder in the past year. Past year prevalence of any anxiety disorder was higher for females (23.4%) than for males (14.3%).
Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate's survey of more than 1,000 respondents conducted in December. That is up from 43% in 2023, yet level when compared to 2022.
Finances look different at every age
More than one-third of Americans (35%) said they did not experience any financial setbacks in 2023, including more than half of Americans ages 65+ (53%), and 37% between the ages of 55-64, compared to just 28% of those ages of 18-54.
Everyone worries about money from time to time, but financial anxiety is different. Financial anxiety is an obsessive fear of things related to money that can often be debilitating. Financial anxiety can be triggered by any number of things, not just a lack of money.
How many Americans live paycheck to paycheck?
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Here is some advice that may help. Learn from others who successfully live paycheck-to-paycheck. Methods include aligning bill days more closely with paydays to minimize cash gaps, negotiating a reduction in healthcare bills, borrowing money from family or friends, or taking side jobs like yard work or childcare.
Total credit card debt in the U.S. has reached a record high — but people are putting less money toward paying it down. Americans collectively hold $1.13 trillion in credit card debt as of the end of December, according to the Federal Reserve Bank of New York's latest Household Debt and Credit Report.
A mild recession could hit the U.S. in the first half of 2024, Deutsche Bank analysts said in a new global outlook Monday, pointing toward softening economic data. The lagged impact of interest-rate hikes will trigger a recession, though it won't be a severe one, they said.
The Bottom Line on Personal Finance for 2024
Although 2024 is looking to be less volatile than 2023, we're still not past the post-pandemic corrections. While inflation and interest rates are likely to come down, ripple effects may still be felt in the housing market, job market and budgets of many American households.
