Less than one-third (31%) of Americans are “financially healthy” in 2022, down 3% from a year ago. A person who is “financially healthy” spends less than what they earn, pays bills on time, and has sufficient liquid savings and long-term savings.
Less than one-third of Americans are “financially healthy” in 2022, down 3% from a year ago, according to the latest Financial Health Pulse 2022 U.S. Trends Report. More than half reported they were “financially coping” and 15% described themselves as “financially vulnerable”.
The share of Americans able to cover at least three months of living expenses also fell to 58% in 2022 from 61% last year, and only 40% people said they were confident and on track to achieving their long-term financial goals, down from 43% last year. “We really see substantial decreases happening in mid-moderate to higher-income folk,” Fontes told MarketWatch.
At the same time, some lower-income households were changing what they put on the dinner table, avoiding meat and changing to beans and vegetable soups. Middle-earners started to feel the pinch as they cut down on discretionary spendings such as clothing and electronics, according to a recent Morning Consult report. Dollar stores have also reported the arrival of a younger and higher-earning customer.
Another good sign: The Philadelphia Federal Reserve said last month its gauge of regional business activity rose to 6.2 in August from negative 12.3 in the previous month. Any reading above zero indicates improving conditions.