LOS ANGELES - Approximately 73% of Millennials are living paycheck-to-paycheck, according to a recent report by the financial services company LendingClub.
The report also found that many American adults have cut back on their shopping and picked up more side gigs to make ends meet amid high prices of consumer goods.
The study found that as of March 2023, 66% of Gen Zers were also living paycheck-to-paycheck. That's up from 58% a year ago.
In a separate LendingClub survey, published earlier this year found that Americans making at least $100,000 a year are still living paycheck-to-paycheck.
"The effects of inflation are eating into every American's wallet and as the Fed's efforts to curb inflation drive up the cost of debt, we are seeing near record numbers of Americans living paycheck-to-paycheck," said Anuj Nayar, financial health officer at LendingClub. "While the number of Americans living paycheck to paycheck is close to the height we saw in the middle of the pandemic, the causes appear to be very different, as the economy is not sheltering in place like it was back in 2020."
Meanwhile, the report found about 40% of consumers living paycheck-to-paycheck expressed rosy outlooks about their financial situations. Just over a quarter, 27%, said they expected it "will worsen."
Faced with high prices and interest rates, consumers have begun reining in their spending. Consumer spending was flat in March for a second straight month, the government reported Friday. Americans sharply cut their spending on autos, furniture and appliances, while continuing to spend on services, including household utilities, restaurant meals and hotel visits.