The Number of Consumers Living Paycheck to ... - PR Newswire

Living paycheck to paycheck is the most common financial lifestyle in the United States, with increasing numbers of high-income consumers now ... SendaRelease ALLCONTACTINFO ContactUs 888-776-0942 from8AM-10PMET SendaRelease SignUp LogIn Resources Blog Journalists RSS GDPR NewsinFocus BrowseAllNews MultimediaGallery TrendingTopics Business&Money Auto&Transportation BusinessTechnology Entertain­ment&Media FinancialServices&Investing GeneralBusiness Science&Tech ConsumerTechnology Energy&NaturalResources Environ­ment HeavyIndustry&Manufacturing Telecomm­unications Lifestyle&Health ConsumerProducts&Retail Entertain­ment&Media Health Sports Travel Policy&PublicInterest People&Culture People&Culture SendaRelease SignUp LogIn Resources Blog Journalists RSS GDPR Overview DistributionbyPRNewswire CisionCommunicationsCloud® CisionIR AllProducts SendaRelease SignUp LogIn Resources Blog Journalists RSS GDPR GeneralInquiries RequestaDemo EditorialBureaus Partnerships MediaInquiries WorldwideOffices SendaRelease SignUp LogIn Resources Blog Journalists RSS GDPR 61%or203MillionAmericansareLivingPaycheckToPaycheck,Upfrom55%aYearAgo33.5millionAmericansspentmorethantheyearnedinthepastsixmonthsSANFRANCISCO,Aug.1,2022/PRNewswire/-- LendingClubCorporation (NYSE:LC),theparentcompanyofLendingClubBank,America'sleadingdigitalmarketplacebank,todayreleasedfindingsfromthe12theditionoftheRealityCheck:Paycheck-To-Paycheckresearchseries,conductedinpartnershipwithPYMNTS.com.TheConsumerSavingsEditionexaminesthefinanciallifestyleofU.S.consumerswholivepaychecktopaycheck,thefactorsthatcausefinancialdistressandtheimpactoffinancialstressorsontheirabilitytomanageexpensesandputasidesavings.KeyFindings ContinueReading Figure:Consumerslivingpaychecktopaycheckinlastthreemonths;Shareofconsumerswholivepaychecktopaycheck,overtimeandbyannualincome - 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-PaycheckLandscapeLivingpaychecktopaycheckisthemostcommonfinanciallifestyleintheUnitedStates,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.  Figure:ConsumerslivingpaychecktopaycheckinlastthreemonthsShareofconsumerswholivepaychecktopaycheck,overtimeandbyannualincomeHowInflationaryPressuresImpactSavingsAnestimated33.5million—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.Toviewthefullreport,visit:https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-stock-portfolios-consumer-savings/MethodologyNewRealityCheck: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.AboutLendingClub  LendingClubCorporation(NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.,wherememberscanaccessabroadrangeoffinancialproductsandservicesdesignedtohelpthempaylesswhenborrowingandearnmorewhensaving.Basedonmorethan150billioncellsofdataandover$70billioninloans,ouradvancedcreditdecisioningandmachine-learningmodelsareusedacrossthecustomerlifecycletoexpandseamlessaccesstocreditforourmembers,whilegeneratingcompellingrisk-adjustedreturnsforourloaninvestors.Since2007,morethan4millionmembershavejoinedtheClubtohelpreachtheirfinancialgoals.FormoreinformationaboutLendingClub,visithttps://www.lendingclub.com.CONTACT:  ForInvestors:[email protected]  MediaContact:[email protected]  PYMNTSContact:[email protected]SOURCELendingClubCorporation × Modaltitle Alsofromthissource LendingClubNamedtoNewsweek'sListoftheTop100MostLoved... 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