Over 60% of the Middle-Class Report Financial Struggles

Many middle-class Americans are not experiencing the benefits of economic growth in their personal finances. Despite the nation’s economic growth, a staggering number, two-thirds of middle-class Americans are grappling with financial hardships.

On Tuesday, a new poll released by the National True Cost of Living Coalition painted a stark picture: over 60 percent of Americans in the middle class are “struggling financially” and do not foresee an improvement in their situation for the rest of their lives.

This survey brings to light the harsh financial realities faced by those earning above 200 percent of the federal poverty level (FPL), a group traditionally considered to be middle class.

Economic Growth Does Not Equate to Financial Security

The poll’s findings are particularly striking given the current economic indicators. Despite an increasing number of jobs, growth in the gross domestic product (GDP), and a steady stock market, a significant portion of Americans are unable to plan and save effectively.

The survey highlights that 40 percent of Americans cannot plan beyond their next paycheck, and 46 percent lack $500 in emergency savings.

According to a report by Bloomberg, an astonishing 80 percent of Americans have experienced living paycheck to paycheck at least once.

Jennifer Jones Austin, CEO and executive director of the Federation of Protestant Welfare Agencies, one of the organizations behind the poll, pointed out the disparity: “The economy is booming, and yet many Americans are still gasping for air financially. They simply don’t have the breathing room to plan beyond their present needs.”

Disparities in Savings and Financial Planning

According to the latest poll, there are significant discrepancies in savings habits among Americans. Shockingly, 28 percent of respondents admitted to having no savings at all, while roughly 20 percent reported having saved $10,000 or more.

The survey also revealed that one in six Americans frequently grapple with difficult choices about which bills to prioritize, underscoring the persistent challenge of meeting essential financial obligations. This data sheds light on the widespread financial difficulties faced by many individuals across the country.

The Need for Financial Resilience

Middle-class Americans need better financial stability. While the economy seems strong, many people are still struggling.

Financial planning and savings remain out of reach for a significant portion of the population, indicating a disconnect between economic growth and personal financial stability.

Addressing these Challenges Requires a Multi-faceted Approach

As policymakers and organizations evaluate these findings, it is important to tackle the underlying factors contributing to this widespread financial strain.

Key issues include: