Survey Finds 70% of Millennials and Bridge Millennials Living Paycheck to Paycheck
A recent survey by PYMNTS and LendingClub found that while a portion of all generations are currently living paycheck to paycheck, the share of consumers who live that way is highest in millennials and bridge millennials at 70 percent each. New Reality Check: The Paycheck-to-Paycheck Report is part of a monthly series based on surveys of more than 36,000 consumers.
The share of consumers in other generations who live paycheck to paycheck include 54 percent of baby boomers and seniors, 60 percent of Gen X, and 65 percent of Gen Z. By income bracket, the share that live that way is 42 percent of those with an annual income of over $100,000, 66 percent of those with an annual income between $50,000 and $100,000, and 77 percent of those with an annual income of less than $50,000.
The report revealed a significant gap in savings between those who live paycheck to paycheck and struggle to pay bills, and those living paycheck to paycheck but don’t struggle to pay bills. Among consumers who struggle, average savings vary from $1,158 to $2,765, while savings vary from $3,362 to $7,961 among consumers who comfortably live paycheck to paycheck.
Paying an emergency expense of $400 can be challenging for all consumers living paycheck to paycheck, but those who struggle to pay their bills are more likely to deal with emergency expenses by selling something, borrowing from family or friends, or using a credit card.
Alternatively, those who comfortably live paycheck to paycheck are more likely to manage an emergency expense by using money from their checking or savings accounts.