Almost half of Americans living paycheck to paycheck resulting in some tough choices

Almost half of Americans living paycheck to paycheck resulting in some tough choices
Holiday spending will be reduced for many as belts tighten.
OCT 24, 2024

Every day is a challenge when budgets are squeezed to the limit, but at times when spending typically surges some tough decisions are required.

With 46% of more than 2,000 participants in new research from Thrivent reporting they are living paycheck to paycheck; the approaching holiday season is set to be difficult for those without any flex in their finances.

Two thirds of respondents are concerned about their finances going into holiday season including 27% who are very concerned. With the current economy, around one third said they will buy fewer gifts and a similar share will buy cheaper ones.

“The holidays may be the most wonderful time of the year, but this festive season has Americans on edge,” said Thrivent Wealth Advisor Clint Jasperson. “Our Holiday Spending Survey shows rising costs, tighter budgets and a lack of financial planning may be the real grinches this year.”

Despite their financial worries, just one in five respondents felt that a financial plan would help them control their spending and 35% said they are not seeking advice on how to do this.

Inflation has driven up the cost of cheer and half of respondents are concerned. Notably, despite many polls showing how younger Americans are struggling more due to inflation, Gen Zs and Millennials are less concerned about rising prices for the holidays (51% and 48% respectively) compared to Boomers and Gen Xers (61% and 58% respectively).

Social media plays a key role in spending decisions with Gen Z and Millennials (both 35%) the most likely to be impacted compared to Gen X (29%) and Boomers (11%). 

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.