Almost 3/4 of Millennials Living Paycheck to Paycheck, Report Finds
A new PYMNTS report in collaboration with LendingClub found that 73.2 percent of millennials, nearly three quarters, are living paycheck to paycheck, which is a significantly higher share than other generations. 60.1 percent of total consumers surveyed were living paycheck to paycheck, along with 65.5 percent of Gen Z, 64.2 percent of Gen X, and only 49.5 percent of baby boomers and senior citizens.
“With inflationary pressures expected to continue well into 2024, consumers of all generations remain tasked with adjusting their financial behaviors to be able to put aside savings and remain credit worthy,” the report reads. 38.4 percent of respondents said they were living paycheck to paycheck because their paycheck was just enough to cover basic bills.
Over a quarter of respondents said they are living paycheck to paycheck because they have significant debt to pay and they have to pay expenses for other family members, and nearly 30 percent of millennials cited these reasons. The Hill highlighted that paycheck-to-paycheck consumers learn to handle finances through financial crises and recessions.
Millennials seem to be managing finances effectively, as they had an average savings of $11,000 last month compared to $7,300 a year ago. 70 percent of millennials live with a spouse or partner, and more than 60 percent live with children or grandchildren. 20 percent of millennials earn all of their household income, while almost 80 percent earn more than half of it.
Additionally, the report found that almost 66 percent of Gen Z consumers live paycheck to paycheck, up 8 percentage points from a year prior. The report accredited this increase to the fact that many Gen Z consumers are still establishing their careers and might be more apt to spend their paychecks on discretionary purchases such as entertainment or eating out.
Although 31 percent of Gen Z consumers said they are likely to spend their paychecks on discretionary purchases, nearly 40 percent said that their salary only covers their basic expenses.