National Survey: Middle-Income Families Are Feeling Increasingly Negative About Personal Finances Despite an Uptick in Purchasing Power
Households continue to slowly climb out of the pandemic-era financial hole caused by inflation
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Primerica Household Budget Index™ - Spending power reached its highest level since
“For the first time in a year, a majority of middle-income households are feeling negative about their personal finances. In fact, this latest report represents the highest negative rating we’ve seen since we began fielding the survey exactly four years ago,” said
In contrast, Primerica’s latest Household Budget Index™ (HBI™) indicates middle-income households experienced an uptick in purchasing power in
“The economy has turned more favorable in recent months, but it will take time for the effects of lower interest rates, declining prices on necessities and rising wages to have a real impact on the bottom lines of middle-income families,” said
Key Findings from Primerica’s Q3
- Middle-income Americans’ perceptions of their personal and community financial health continue to decline. A majority of households (55%) now rate their personal financial situation negatively — a 6-point increase from the previous survey. Significant majorities also view the economic health beyond just their own personal finances in a grim light – their community (63% negative, up 5 points), the nation (73% negative, up 1 point), and their ability to save for the future (73% negative, up 5 points).
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Credit card debt — and concern over it — is rising. More than one-third (35%) of middle-income Americans say their credit card debt has risen in the past three months — a 5-point jump from the previous survey — and less than one-third (31%) are paying off their credit card in full each month. In addition, nearly half (44%) are more worried about their credit card debt than they were a year ago — a 9-point jump from the last survey and the highest level of concern since the question was first introduced in
March 2023 . Still, more than two-thirds (69%) say they have reduced overall spending in the past couple years.
- Uncertainty over the country’s economic future is running high. The share of households expecting the American economy to worsen in the next year has dropped significantly, with just 25% holding that view — down 15 points from the previous survey. However, much of the shift is driven by growing uncertainty, as one-third (34%) of respondents — up 15 points — are unsure about the economy’s direction. Still, optimism also ticked up, with 25% now believing the economy will improve over the next year, a 7-point increase.
- Inflation, paying for food or groceries are stressing families out. Inflation remains the No. 1 concern for middle-income Americans, with over one-third (40%) citing it as a major worry — an 8-point increase since the last survey. Close behind, one-third (33%) now rank paying for food and groceries as their second biggest concern, up 7 points. Moreover, when asked to describe their feelings about their finances, a majority (58%) chose “stressed,” while nearly half (43%) selected “discouraged.”
- Half of middle-income Americans can’t afford to go to the doctor. When asked to choose what they could afford from a list, only half (51%) said they could cover the cost of a doctor’s visit — a disconcerting figure given that more than a quarter (27%) expressed concern about their health or getting sick, making it the third top worry for these households.
Primerica Financial Security Monitor™ (FSM™) Topline Trends Data
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Sept
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Jun
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Mar
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Dec
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Sept
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Jun
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Mar
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Dec
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Sept
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How would you rate the condition of your personal finances? Share reporting “Excellent” or “Good.” |
44% |
49% |
50% |
50% |
49% |
50% |
52% |
53% |
53% |
|
Analysis:Respondents are increasingly negative in their assessment of their personal finances. |
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Overall, would you say your income is…? Share reporting “Falling behind the cost of living” |
68% |
66% |
67% |
68% |
72% |
71% |
72% |
72% |
75% |
|
Share reporting “Stayed about even with the cost of living” |
24% |
26% |
25% |
24% |
20% |
22% |
21% |
20% |
19% |
|
Analysis: Concern about meeting the increased cost of living remained steady with 92% noting an inability to get ahead. |
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And in the next year, do you think the American economy will be…? Share reporting “Worse off than it is now” |
25% |
40% |
46% |
53% |
56% |
57% |
53% |
56% |
51% |
|
Share reporting “Uncertain” |
34% |
19% |
18% |
9% |
9% |
9% |
7% |
8% |
8% |
|
Analysis: While fewer respondents think the economy will definitely get worse over the next year, the rising share that are uncertain about its direction accounts for most of the change. |
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|
Do you have an emergency fund that would cover an expense of |
61% |
63% |
62% |
60% |
62% |
61% |
58% |
59% |
60% |
|
Analysis: The percentage of Americans who have an emergency fund that would cover an expense of |
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How would you rate the economic health of your community? (Reporting “Not so good” and “Poor” responses.) |
63% |
58% |
60% |
57% |
55% |
54% |
59% |
53% |
55% |
|
Analysis: Respondents’ rating of the economic health of their communities has gotten worse over the past year. |
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|
How would you rate your ability to save for the future? (Reporting “Not so good” and “Poor” responses.) |
73% |
68% |
67% |
73% |
71% |
71% |
73% |
74% |
73% |
|
Analysis: A significant majority continue to feel it is difficult to save for the future. |
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In the past three months, has your credit card debt…? (Reporting “Increased” responses.) |
35% |
30% |
34% |
35% |
34% |
33% |
33% |
39% |
37% |
|
Analysis: Credit card debt has remained about the same over the past year. |
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About Primerica’s Middle-Income Financial Security Monitor™ (FSM™)
Since
About the Primerica Household Budget Index™ (HBI™)
The Primerica Household Budget Index™ (HBI™) is constructed monthly on behalf of Primerica by its chief economic consultant
The HBI™ is presented as a percentage. If the index is above 100%, the purchasing power of middle-income families is stronger than in the baseline period and they may have extra money left over at the end of the month that can be applied to things like entertainment, extra savings, or debt reduction. If it is under 100%, households may have to reduce overall spending to levels below budget, reduce their savings or increase debt to cover expenses. The HBI™ uses
Periodically, prior HBI™ values may be revised due to revisions in the CPI series and
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20241008472706/en/
Public Relations
gana.ahn@primerica.com
Investor Relations
nicole.russell@primerica.com
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