A majority of millennials are living paycheck to paycheck, according to a recent survey of over 3,000 Americans.
Financial services company LendingClub along with financial news outlet PYMNTS published a study Friday that found 73.2% of millennials live paycheck to paycheck, which was 13 percentage points higher than the overall average of 60%. Some 65.5% of Generation Z consumers and 64.2% of Generation X are also reportedly living the same way with only 49.5% of baby boomers and older among those doing the same.
The “New Reality Check: The Paycheck-to-Paycheck Report" also asked the census-balanced group of its respondents between Mar 8 to 16 for the reason why some consumers were strapped for cash. Among millennials, 37% reported that their paycheck only covered their essentials while 31% pointed to the dependents in their households. Over 70% of millennials live with a partner or spouse, and an additional 60% live with children or grandchildren, according to the report. Less than 20% reported they make up their entire household income, while over 80% reported they make up more than half of the entire income.
Our latest Paycheck-to-Paycheck Report came out today were we found millennials with debt & dependents are most likely to feel the financial crunch. Download it now, a PYMNTS & @LendingClub collaboration: https://t.co/NrsBybZHI3 pic.twitter.com/keDl2Kg1mn— PYMNTS (@pymnts) April 28, 2023
Millennials reportedly beefed up their savings from an average of $7,300 according to last year's report to $11,000 this year. This also comes as 72% claimed they experienced a moment of financially distress within the last three years. Meanwhile 51% of baby boomers and older could say the same happened to them.
The number of Gen Z consumers living paycheck to paycheck increased eight percentage points from last year to 66% this year. Less than a third of them cited their discretionary spending was a cause, with another nearly 40% blaming their paycheck for only covering basic expenses.
During the same month the survey was taken, inflation fell to a 4.2% annual rate according to the Federal Reserve.