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73% of millennials in US living paycheck to paycheck: Report

Saturday, 29 April 2023 6:14 PM [ Last Update: Saturday, 29 April 2023 6:33 PM ]

A new report has found out that almost three-quarters of millennials -- people born from 1981 to 1996 -- in the United States are living paycheck to paycheck.

The survey, entitled “New Reality Check: The Paycheck-to-Paycheck Report,” was released on Saturday by PYMNTS, a company that reports on financial news and data, and the financial services company LendingClub, The Hill reported.

The report found 60.1 percent of American consumers were living paycheck to paycheck last month, including 73.2 percent of millennials.

In the meantime, 65.5 percent of consumers of Generation Z -- the generation born in the late 1990s or the early 21st century -- and 64.2 percent of Generation X – the generation born before millennials -- were living paycheck to paycheck, but only 49.5 percent of baby boomers and senior citizens were. Baby boomers were born in the years following the Second World War, when there was a temporary marked increase in the birth rate.

Respondents who said they were living paycheck to paycheck said that their paycheck only covers basic bills.

More than 25 percent of respondents also said they pay for expenses for other family members and have major debts to pay. About one-third of millennials cited each of these reasons.

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Over 70 percent of millennials live with a partner or spouse, and more than 60 percent live with children or grandchildren, according to the survey.

The report states that millennials and other paycheck-to-paycheck consumers have learned to handle finances through recessions and financial crises.

“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 creditworthy,” the report concludes.

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