According to a recent report by financial services company LendingClub, approximately 73% of American Millennials are living paycheck-to-paycheck, with many cutting back on shopping and taking on additional jobs to make ends meet.
The report also reveals that as of March 2023, 66% of Gen Zers were living paycheck-to-paycheck, up from 58% a year ago. Even those making at least $100,000 annually are experiencing financial difficulties.
LendingClub’s financial health officer, Anuj Nayar, cites inflation and the rising cost of debt as contributing factors to the current financial struggles of many Americans. Despite this, the report shows that about 40% of those living paycheck-to-paycheck remain optimistic about their financial future.
However, with consumers reining in spending due to high prices and interest rates, the government reported that consumer spending remained flat in March for a second straight month.