The average purchasing power of middle-income families increased to 100.9 percent in December, a 1.1 percent increase compared to 2023 and 0.2 percent higher than November, according to Primerica Household Budget Index, an economic snapshot of middle-income households’ financial well-being.
Despite the increase, 65 percent of respondents said their income was not keeping pace with inflation and the high cost of living, according to Primerica’s latest Financial Security Monitor, a quarterly survey of middle-income households.
“We are in a new paradigm of permanently higher prices that consumers have not yet adjusted to emotionally and, in some cases, financially, and where a person is in their life can impact that even further,” Dr. Amy Crews Cutts, an economist who consults for Primerica, said. “Millennials are at peak ‘adulting’ ages, when they would typically buy homes, start families, etc., but the highest inflation and interest rates in their lifetimes coupled with the high costs of homes and cars and child care are limiting their options. Their pessimism is grounded by their unique experiences.”
Approximately 57 percent of respondents are stressed about money and finances. Baby Boomers felt the least stress, at 39 percent, while 75 percent of Millennials are stressed followed by 62 percent of Gen Xers and 61 percent of Gen Zers.