A growing share of lower-income Americans are struggling to get by financially as their wages fail to keep up with inflation, according to a recent analysis.
Roughly 29% of lower-income households are living paycheck to paycheck, up slightly from 2024 and from 27.1% in 2023, data from the Bank of America Institute shows. The financial firm defines that as spending more than 95% of household income on necessities such as housing, gasoline, groceries, utility bills and internet service.
In 2025, nearly a quarter of all U.S. households lived paycheck to paycheck, Bank of America estimates.
Aren’t most people effectively living paycheck to paycheck? Because unless you’re actively saving money, you’re probably spending it all. I know plenty of people living comfortable lives with good incomes whose lifestyles are completely dependent on that income staying the same. Lifestyle creep pretty much makes sure that whatever comes in also immediately goes out.