A recent CNN poll has revealed that nearly four in ten Americans are increasingly worried that their family income will not be sufficient to cover all their expenses. The poll found that 39% of US adults worry most or all the time about this issue, a significant increase from 28% in December 2021 and higher than the 37% seen during the 2008 recession.
In response to these financial concerns, Americans are adopting various strategies to cope. Many are taking on side jobs, reducing how often they drive, and relying more on credit cards for everyday expenses. Additionally, people have reported cutting back on discretionary spending such as entertainment and opting for more budget-friendly grocery stores.
The poll highlighted that over half of individuals earning less than $50,000 annually are worried about having enough money. When asked about the biggest economic problem facing families, 65% of Americans cited the cost of living and overall expenses.
According to a report by Moody’s Analytics, the typical household has to spend $925 more per month to purchase the same goods and services compared to just three years ago. While inflation rates are starting to come down, the damage has already been done and prices for goods are now at rates much higher than they were only a few years prior.
Greg McBride, chief financial analyst at Bankrate, explained the situation:“We can talk all day about how inflation is moderating but the cumulative impact of several years’ worth of inflation has done a number on household budgets. The view from 35,000 feet is unemployment is low, the economy is growing and people are spending money. The reality on the ground is moderating inflation doesn’t mean prices are coming down, just that they aren’t going up as fast.”
This piece first appeared at TPUSA.
