Americans Struggle to Feel Financially Secure
A growing number of Americans believe they need to earn at least six figures to feel financially secure, according to recent data. A new survey by Bankrate reveals that for many, economic comfort has become increasingly elusive, with inflation and rising costs putting pressure on household budgets.
Six Figures: The New Benchmark
The study indicates that about 25% of U.S. adults believe earning a minimum of $100,000 annually is necessary to feel comfortable financially. This figure underscores the widening gap between income and the cost of living. Even more striking, 10% of respondents say they would need to earn $200,000 or more to feel secure.
These findings are a reflection of growing anxieties linked to economic uncertainty and inflation. Despite the U.S. economy showing signs of resilience, many Americans continue to feel that stability is out of reach.
Financial Stability: A Rare Luxury
According to Bankrate’s survey, only 28% of Americans report feeling financially secure. That means nearly three-quarters of the population are struggling to reach a level of comfort in their financial lives. The report describes financial stability as a “rare luxury” for many households.
Greg McBride, Bankrate’s chief financial analyst, emphasizes the psychological toll of today’s economic climate. “People are being squeezed between rising expenses and stagnant wages, and it’s eroding their sense of financial well-being,” he said.
The Impact of Inflation and Rising Costs
Inflation has played a major role in reshaping Americans’ perception of what it takes to live comfortably. Over the past two years, prices have risen sharply for essentials like food, housing, and healthcare. Even though inflation has cooled slightly from its 2022 highs, the cumulative impact has left many households feeling financially fragile.
According to the survey, nearly 60% of respondents cited inflation and rising living costs as the primary reasons they do not feel financially secure. This is especially pronounced among lower- and middle-income families, who often have less margin for absorbing unexpected expenses.
Who Feels Financially Secure?
The survey shows that older Americans and high earners are more likely to feel financially stable. About 40% of those earning $100,000 or more annually report feeling secure, compared to just 18% of those making under $50,000. Similarly, adults aged 65 and older are more likely to feel confident in their finances, likely due to established savings and fewer expenses.
Meanwhile, younger generations—particularly Millennials and Gen Z—are struggling to build financial confidence. Burdened by student debt, rising rent, and stagnant wages, many younger adults find it challenging to save or invest for the future.
What Americans Say They Need
Bankrate’s data suggests that financial security is not just about income levels. Many respondents also noted the importance of savings, manageable debt, and job stability in achieving economic comfort. In fact, 70% of those who feel financially secure say they have an emergency fund, compared to only 30% of those who do not feel secure.
Respondents indicated that having at least three months’ worth of expenses saved is a key factor in whether they feel stable. Others pointed to financial literacy and budgeting as tools that help navigate economic challenges.
Strategies for Improving Financial Well-Being
Experts advise that even in the face of inflation, there are steps individuals can take to improve their financial standing. These include creating a monthly budget, reducing unnecessary expenses, and setting achievable savings goals. McBride recommends automating savings and focusing on paying down high-interest debt as effective ways to feel more in control.
“Financial security isn’t achieved overnight,” McBride noted. “But small, consistent steps can make a big difference over time.”
Conclusion
The Bankrate survey paints a sobering picture of America’s current financial landscape, where comfort and stability seem increasingly tied to higher income levels. As the cost of living continues to rise, the dream of feeling secure remains just that—a dream—for many Americans.
While six-figure earnings may seem like a benchmark for comfort, experts stress that financial security also relies on smart planning, disciplined saving, and informed decision-making. As households navigate economic pressures, building financial resilience has never been more important.
This article is inspired by content from CBS News. It has been rephrased for originality. Images are credited to the original source.