Overview
- Bank of America Institute estimates nearly 25% of households spend more than 95% of income on essentials, up from 23.5% in 2024 with a slower year-over-year increase.
- The rise is concentrated among lower-income households, especially millennials and Gen X, while rates for middle- and high-income groups show little change, according to the institute.
- Regional patterns diverge, with paycheck-to-paycheck shares rising in the Northeast and Midwest but easing in the South and West.
- A Harris Poll finds nearly one in three people earning at least $100,000 report being stretched or worse, and most say a six-figure income now feels like survival rather than wealth.
- A separate survey by Talker Research for EarnIn reports consumers spend over one-third of a paycheck within 12 hours, as broader context shows prices roughly 24% above early 2020 and spending increasingly concentrated among the top 10%.