Overview
- The institute, using data from households that primarily bank with Bank of America, estimates 24% spent over 95% of their income on necessities in 2025.
- The overall share rose about 0.3 percentage points from 2024, a slower pace than the 0.9‑point increase recorded the prior year.
- Lower‑income households living paycheck to paycheck climbed to roughly 29% in 2025 from 27% in 2023, with little movement among middle‑ and high‑income groups.
- After‑tax wage growth diverged in October—about 1% for lower‑income, 2% for middle‑income, and around 4% for high‑income households—against roughly 3% inflation.
- Financial stress indicators are worsening as subprime auto loans 60+ days delinquent reached 6.65% in October and economists warn the strain could dampen spending and raise unemployment risks.