Nearly a quarter of Americans live paycheck to paycheck

Nearly a quarter (about 24%) of American households are living paycheck to paycheck in 2025, according to a recent analysis by the Bank of America Institute. This figure represents a slight increase from 23.5% in 2024. The rise in paycheck-to-paycheck living is primarily driven by lower-income households, with about 29% in this group experiencing financial strain. Middle-aged groups, such as Millennials and Gen X, are also seeing a growing share living paycheck to paycheck. Inflation outpacing wage growth and rising costs in necessities like housing, groceries, and healthcare contribute significantly to this trend. Additionally, high-income earners are not immune; around 40% of those earning $300,000 or more also report living paycheck to paycheck.​

It’s worth noting that while 24% of households live paycheck to paycheck according to Bank of America health data, other studies report that as many as 57% to 67% of American adults or workers say they are living paycheck to paycheck, reflecting different measures or definitions of financial stress.