Have you come across this chart?
Look at the Gen Zs performance! There is an increase of 8% from March last year to this year of those living paycheck to paycheck.
This generation is starting out in their careers. They most likely have lower incomes and a bigger share of consumer debt. They are also more inclined to spend on meals and entertainment while struggling to afford basic bills.
In comparison, the proportion of baby boomers who have nothing left after paying their monthly costs has fallen below 50%. It seems that the boomers, many of whom are retired and live on a fixed income, have reduced their spending to cope with increasing prices.
Living paycheck to paycheck may not necessarily mean financial difficulty. A large proportion of higher earners rely exclusively on their monthly salaries to meet their fundamental commitments in America.
But it will be difficult for people to pay for any unexpected expense, and they will face immediate hardship if their source of income is lost.
In addition, the start of student debt payments, which were delayed during the pandemic, is one that millions will have to face.
Some people may find it difficult to handle future emergency needs, such as education, or student-loan payments when they return, and housing bills, all of which will become more difficult to balance for the average American consumer.
Reference: MSN, Americans are living paycheck to paycheck
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