Americans Living Paycheck to Paycheck Increased Year-Over ...

New Reality Check: The Paycheck-To-Paycheck Report: The Consumer Savings Edition is based on a census-balanced survey of 3,583 U.S. consumers ... Skiptomaincontent LendingClubCorp.releasedfindingsfromthe12th editionofthe RealityCheck:Paycheck-To-Paycheckresearchseries,conductedinpartnershipwith PYMNTS.com,onAug.1.TheConsumerSavingsEditionexaminesthefinanciallifestyleofU.S.consumerswholivepaychecktopaycheck,thefactorsthatcausefinancialdistress,andtheimpactoffinancialstressorsontheirabilitytomanageexpensesandputasidesavings. Keyfindings: InJune2022,61%ofAmericanswerelivingpaychecktopaycheck,upfromalowof52%inApril2021and55%inJune2021.Averagesavingsdropped$517from$11,724inMay2022to$10,757inJune2022.Thebiggestriseinpaycheck-to-paycheckconsumerswasinconsumersearningbetween$100,000and$150,000,up11percentagepointsfromMay2022to52%inJune2022.Theaverageconsumerstores11%oftheirsavingsineitherstocksorbonds,yethalfofallstockholdersreportedthattheirportfoliosrecentlylostvalueinthelastthreemonths.Anestimated33.5million—or13%—ofU.S.consumersspentmorethantheyearnedinthepastsixmonths. “Whatadifferenceayearmakes.Lastsummerwewereallworriedabouthowquicklytheeconomywouldrecover.Now,asinflationcontinuesitsupwardsswing,consumersarefindingitmoredifficulttomanagespendingandareeatingintotheirsavingsasfinancialpressuresmount,”saidAnujNayar,LendingClub’sfinancialhealthofficer.“Thatsaid,consumersarenotyetslowingdowntheirspendinghabits,despitetheriseinthecostofliving.Notonlyisitgoingtobedifficultforthemtohandlefutureemergencyexpenses,butevenforeseenpaymentslikeeducation,studentloans,orhousingexpensesmaybehardertobalancefortheeverydayAmericanconsumer.” Today’sPaycheck-To-PaycheckLandscape LivingpaychecktopaycheckisthemostcommonfinanciallifestyleintheU.S.,withincreasingnumbersofhigh-incomeconsumersnowlivingpaychecktopaycheck.InJune2022,61%ofAmericanswerelivingpaychecktopaycheck,upfromalowof52%inApril2021and55%inJune2021. ThehighestincomebracketshaveexperiencedsignificantupswingsinthesharelivingpaychecktopaycheckfromMaytoJune2022.Thebiggestriseinpaycheck-to-paycheckconsumerswasforthoseearningbetween$100,000and$150,000,up11percentagepointssinceMay2022to52%. Forty-onepercentofthoseearningbetween$150,000and$200,000annuallylivedpaychecktopaycheckinJune2022,upsixpercentagepointsfrom35%inMay.Furthermore,theshareofconsumersearningmorethan$200,000wholivedpaychecktopaycheckrose6percentagepointsfrom30%inMayto36%inJune2022. HowInflationaryPressuresImpactSavings Anestimated33.5million—or13%—ofU.S.consumersspentmorethantheyearnedinthepastsixmonths.AmongallU.S.consumers,averagesavingsdroppedfrom$11,274inMayto$10,757inJune,anindicationthatinflationhashadanimpactonallconsumers’abilitytosave. Paycheck-to-paycheckconsumersaremorelikelytoprioritizeeasyaccesstofundswhenchoosingwheretoholdtheirsavings,keepinganaverageof70%oftheirmoneyinbanks,digitalwallets,orcash.Preferenceformorediversifiedportfoliosincreasessignificantlyamonghigh-incomeconsumers.  Whenchoosinghowtosave,theaverageconsumerhashalfoftheiravailablesavingsstoredinabankordigitalwalletsuchasPayPalorVenmo.Theaverageconsumeralsokeeps11%oftheirsavingsineitherstocksorbonds,and20%ineducationorretirementaccounts.Meanwhile,consumersinthehighestincomebracketallocateanaverageof58%oftheirsavingstoassetsotherthancashorfundsinafinancialinstitution.Consumersearningmorethan$200,000peryearinvested28%oftheiravailablesavingsinstocksandbonds,whileconsumersearningbetween$100,000and$200,000invested14%oftheiravailablesavingsinstocksandbonds.  Themostcitedfactorinfluencinghowconsumersstoretheirsavingsiseaseofaccesstotheirmoney,citedby46%ofconsumerswhohavesavings.Whilequickaccessisthedominantfactorinfluencingsavingspreferencesamongpaycheck-to-paycheckconsumersandlowerincomeconsumers,thepreferencefordiversifiedportfoliosincreasessignificantlyamonghigh-incomeconsumers:31%ofconsumersearningmorethan$200,000annuallysaidhavingadiversifiedportfolioisthemostimportantreasonforchoosinghowtheystoretheirsavings,comparedtojust8.7%ofthoseearninglessthan$50,000peryear. Recentstockmarketvolatilityandinflationhavemadeeaseofaccesstofundsmoreofapriorityforfinanciallystrugglingconsumersthanforthosewithhigherincomeswhomaybemoreabletohavealonger-termhorizonontheirsavingsportfolios. Clickheretoviewthefullreport. Methodology NewRealityCheck:ThePaycheck-To-PaycheckReport:TheConsumerSavingsEditionisbasedonacensus-balancedsurveyof3,583U.S.consumersconductedfromJune8toJune27.ThePaycheck-To-PaycheckseriesexpandsonexistingdatapublishedbygovernmentagenciessuchastheFederalReserveSystemandtheBureauofLaborStatisticstoprovideadeeplookintotheelementsthatlieatthebackboneoftheAmericanconsumer’sfinancialwellness:income,savings,debtandspendingchoices.OursamplewasbalancedtomatchtheU.S.adultpopulationinasetofkeydemographicvariables:51%ofrespondentsidentifiedasfemale,31%werecollege-educatedand35%declaredincomesofover$100,000peryear. Payroll Payroll News Payroll LatestinPayroll Payroll JobEngagementDeclinesforaThirdofWorkers Oct.19,2022 Payroll ADPLaunchesToolforBusinessestoSurveyTheirEmployees Oct.19,2022 Payroll StudentLoanForgivenessWebsiteOpens IsaacM.O'Bannon Oct.17,2022 Payroll L.A.toTest$1,000aMonthGuaranteedIncomeProgram Oct.13,2022