Archive · 28 Nov 2025
24% of US households live paycheck to paycheck
A new report shows that 24% of US households are living paycheck to paycheck, which means they spend almost all their money on things like housing, groceries, and bills.
This is the highest number in years.
Lower-income families are feeling the most pressure, with 29% living paycheck to paycheck.
Even higher-income households are feeling the squeeze, but for different reasons, like spending more on nice things.
The report says that inflation, which is when prices go up, is making it harder for people to keep up.
It's like a race where some people are running fast and others are struggling to keep up, making the gap between rich and poor bigger.
24% of US households are living paycheck to paycheck, the highest level since 2016.
Lower-income families are the most affected, with 29% living paycheck to paycheck.
Higher-income households are also feeling the squeeze, with 19% living paycheck to paycheck due to lifestyle creep.
Inflation is the primary force widening the wage gap between higher- and lower-income workers.
The report warns of a K-shaped economy, where some industries and people do well while others struggle.
- Who
- US households, particularly lower-income families and higher-income households
- What
- 24% of US households are living paycheck to paycheck, the highest level since 2016
- When
- The trend has been increasing, with a modest rise of 0.3 percentage points from last year
- Where
- United States
- Why
- Everyday costs continue to outpace many families' earnings, and inflation is the primary force widening the wage gap
- Percentage of households living paycheck to paycheck
- 24%
- Percentage of lower-income families living paycheck to paycheck
- 29%
- Percentage of higher-income households living paycheck to paycheck
- 19%
- Definition of paycheck-to-paycheck living
- Households spending 95% or more of their income on unavoidable bills
- Primary force widening the wage gap
- Inflation