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24 percent of households living paycheck to paycheck: Analysis
About 24% of U.S. households spend over 95% of income on necessities, with lower-income groups driving the increase amid wage growth lagging behind inflation, Bank of America data shows.
- Bank of America Institute released data Tuesday showing nearly 24% of U.S. households are living paycheck to paycheck in 2025, spending over 95% of income on essentials.
- Bank of America data show inflation rose 3.0% year-over-year in September while after-tax wage growth increased only 2% and 1% for middle- and lower-income households in October, with lower-income households primarily driving the rise in paycheck struggles.
- Fitch Ratings and Bank of America data show subprime borrowers at 6.65% car loan delinquency in October, rising credit card minimum payments, and Federal Reserve reports increased delinquencies last year.
- The bank warns that the Wall Street bank estimates a 20% to 25% chance the US unemployment rate jumps by at least 0.5 percentage points in the next six months.
- The report frames the U.S. as a K-shaped economy where wages for low-income Millennials rose just 1%, while high-income households saw 6% growth, widening the wage gap, Joe Wadford said.
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The fall in wages for low-income households in recent months has affected their monthly budgets
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WLOSNearly a quarter of Americans live paycheck to paycheck, Bank of America Institute finds
Amid widespread affordability concerns, a new Bank of America Institute analysis found that nearly one in four households is living paycheck to paycheck.
·Charleston, United States
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Coverage Details
Total News Sources40
Leaning Left3Leaning Right2Center32Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
C 87%
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