March 24, 2023
Most adults say their financial situation is a source of stress, including 36% who say it is a major source of stress as people experience rising costs and debt. These problems are particularly acute in households with incomes below $50,000.
Six in 10 adults with household incomes below $50,000 describe their financial situation as poor and lack confidence in their ability to pay an unexpected medical expense or have enough savings for retirement. About half cite their financial situation as the main source of stress.
Overall, 53% of people describe their own financial situation as good and 47% say it is bad. But among those whose household income is less than $50,000, 61% believe their finances are in poor shape. Eighty percent of people with household incomes over $100.00 say their financial situation is good.
People with lower incomes are more likely to experience great stress from their personal finances compared to households with higher incomes. Overall, 36% of adults say the national economy is a source of great stress, although there is not much difference in household income.
Most people are feeling the pinch of inflation, with 74% reporting higher household spending this year. But more people with household incomes under $100.00 also experience increased debt and reduced savings than households with higher incomes.
Few adults are very confident that they can manage their expenses, pay unexpected medical expenses, have enough to retire or find a job. People with lower household incomes feel particularly insecure about these aspects of their financial situation.
In October 2021, when inflation was just beginning to grip the US economy, 45% said they were very confident in their ability to keep up with their spending. The public has less confidence that they will be able to pay an unexpected medical expense, have enough to retire or find a job than they did in 2021.
Most adults experience the impact of inflation on their grocery bills and are almost as concerned about the cost of gas, housing and other goods and services.
However, the concern is down from last May, when 74% were concerned about the price of gasoline, 68% about the price of groceries, 54% about the cost of housing and 61% were concerned about the prices of other goods and services.
The statewide poll was conducted March 16-20, 2023, using the AmeriSpeak® panel, a probability-based NORC panel at the University of Chicago. Online and telephone interviews using landlines and mobile phones were conducted with 1,081 adults. The margin of sampling error is +/- 4.0 percent points.
- Suggested Citation: AP-NORC Center for Research on Public Affairs. (March 2023). “For many, their personal finances are a source of great stress” INSERT LINK HERE