US Edition24 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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By Matt Egan, CNN. Austin H. can't wait to buy a house and start a family. But for now, at 34, he's barely making ends meet. Austin lives paycheck to paycheck and can hardly save, like millions of Americans struggling to make ends meet in an increasingly unaffordable economy. Worse still, the family construction company where he works is about to close. "I'm going to be out of a job in a month or two, with no safety net," said Austin, who prefer…
Paycheck to paycheck: A quarter of US households struggling to cover essentials
One in four U.S. households is living paycheck to paycheck and struggling to get by, according to a new Bank of America Institute analysis.Researchers analyzed internal data from millions of consumers and found that about a quarter of households spend more than 95% of their income on necessities such as groceries, housing, gas, child care and utilities. The percentage of Americans who are spending over 95% of their income on necessities has incr…
Analysis: Nearly 24% of US households live paycheck to paycheck in 2025
(WISH) — Nearly a quarter of U.S. households are living paycheck to paycheck in 2025, according to Bank of America data released Tuesday, though the growth rate of such households has slowed significantly compared to 2024. The slowdown in growth is attributed to a lack of increase among higher- and middle-income households, while lower-income households, particularly Millennials and Gen X, continue to feel the financial strain. Bank of America’s…
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