What is the biggest financial problem in America?
Nearly 60% of respondents cited inflation as the main contributor to their financial stress, followed by economy-wide instability (43%), rising interest rates (36%) and a lack of savings (35%), according to the survey of 4,336 adults, which was conducted at the end of March.
| Obstacles | Share of U.S. adults |
|---|---|
| 2. The economy | 43% |
| 3. Lack of savings | 31% |
| 4. Personal debt | 27% |
| 5. Health care costs | 22% |
The high cost of living, wealth inequality and job market uncertainty have all contributed to financial vulnerability, even among wealthy families. Concerns about personal debt, including credit card, auto loan and medical debt, are significant sources of financial stress.
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.
Top problems facing the country
These range from economic concerns, such as inflation, affordability of health care and the budget deficit, to drug addiction, gun violence and violent crime.
Most Americans Are Still Struggling Post COVID-19
Contrarily, the wealthiest 20% of households still maintain cash savings at approximately 8% above pre-pandemic levels. Ultimately, with inflation taken into account, the majority of Americans are worse off financially compared with before the start of the pandemic.
The survey, which polled over 4,000 adults in the U.S., finds that three quarters of working Americans (74%) say they are stressed about their personal finances these days, which is slightly higher than the last Your Money survey (70%), and more than half of Americans (61%) consider themselves to be “living paycheck to ...
The largest percentages of the average consumer debt balance are mortgages.
Are people struggling financially? Many low- and middle-income households are dipping into savings to pay monthly expenses, Daco says, a development that doesn't bode well for their spending. Credit card debt is already at a record high and delinquencies are at the highest level since 2011.
A slight majority of all Americans polled (54%) describe their household's financial situation as good, which is about the same as it's been for the last year but down from 63% in March of 2022.
Why Americans are in so much debt?
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
The survey also found that 37% of Americans are behind on monthly bills, which jumps to 53% among parents with young children. Additionally, 61% reported that inflation has impacted their ability to afford their lifestyle. "Yes, inflation seems to have peaked, but it hasn't gone away," Schulz continued.
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.
Almost half of Americans don't have a dedicated retirement savings account, according to the Federal Reserve's 2022 Survey of Consumer Finances. The survey, which includes the latest government data, reveals only 54.4% of American families reported having dedicated retirement accounts such as a 401(k) or IRA.
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.
Good afternoon and thank you for inviting me to speak today to speak about a topic which has been described by the Nobel Prize-winning economist, Bill Sharpe, as the “nastiest, hardest problem in finance”1: the decumulation of pensions.
Having financial problems means being unable to pay debts over the short or long term. Debt complicates financial management and limits purchasing power. Financial difficulties become a source of stress until all debts are paid. A solution must be developed so debts can be reimbursed.
- Climate Change.
- Wars and military conflicts.
- Water contamination.
- Human rights violation.
- Global health issues.
- Global poverty.
- Children's poor access to healthcare, education and safety.
- Access to food and hunger.
The positions of the Republican Party have evolved over time. Currently, the party's fiscal conservatism includes support for lower taxes, government conservatism, free market capitalism, free trade, deregulation of corporations, and restrictions on labor unions.
And many risks to the U.S. outlook remain, including tighter credit, persistent uncertainty over government funding, and ongoing autoworker strikes. But across growth, labor, and inflation, the United States' resilience remains an important source of global economic strength.
How are most Americans doing financially?
Two-thirds (67%) of Americans say that they've cut back on spending, and almost half (45%) say they've put some life plans on hold. A third (35%) have dipped into their savings or investments. And almost two thirds (62%) say that even though they are able to pay their bills, they have little left over for “extras.”
What Does Living Paycheck To Paycheck Mean? Living paycheck to paycheck means you spend all your income on your monthly living expenses – like your rent or mortgage, utilities, groceries and transportation – and have little to no money left over.
The 2007-09 economic crisis was deep and protracted enough to become known as "the Great Recession" and was followed by what was, by some measures, a long but unusually slow recovery.
Trend from 2022 to 2023 in percentage of U.S. adults reporting they have enough money to live comfortably. This has varied between a high of 73% in 2007 to a low of 60% in 2012. It is 64% in the latest reading, in April 2023.
WASHINGTON, DC – The OFR published its 2023 Annual Report to Congress today, which concluded that financial stability risks to the U.S. financial landscape have increased since last year and remain elevated in 2023. The report examined these risks to financial stability between October 1, 2022 – September 30, 2023.
