Money News: 24%of Americans Living Paycheck To Paycheck

Amid falling consumer sentiment and widespread affordability concerns, a new Bank of America Institute analysis found that nearly one in four households is living paycheck to paycheck. The good news is that the increase in those living paycheck to paycheck is slowing. But the data showed lower-income folks are falling further behind. Around 24% of households are now living paycheck to paycheck, up from about 23% two years ago. Bank of America Institute economist Joe Wadford said the pace of growth is down nearly threefold from a year ago. After-tax wage growth for lower-income families is just 1%, according to an analysis of Bank of America deposit data. Wage growth has been 2% for middle-income people and 3.7% for higher-income households. Meanwhile, the annual rate of inflation, as measured by the consumer price index, is 3%. Food prices are up 3.1%. Energy prices are up 2.8%. Wadford said the gap between high- and low-income families is growing. And low-income folks who already cut it close to the bone are forced to make hard financial decisions.

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Source: 13WHAM-TV