One out of every 15 Americans is a millionaire according to a recent UBS report. That’s 38% of all millionaires in the world.

Yet, headlines state that 58% of Americans are living paycheck to paycheck and that credit card debt is at an all-time high.

Two extremes of financial well-being in America.

The Consumer Financial Protection Bureau (CFPB) defines financial well-being as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life.

Consumer Financial Protection Bureau (CFPB) conducted the National Financial Well-Being Survey in late 2016. The findings revealed wide variation in how people feel about their financial well-being. Some subgroups fare relatively well, while a majority face greater challenges.

From 2017 to 2020, the average financial well-being score for U.S. adults increased slightly, reaching 55.

However, approximately 1 in 10 Americans still had low or very low levels of financial well-being2.

Unfortunately, recent reports indicate that financial struggles have intensified. In 2022, the average overall financial wellness score declined, and fewer workers reported being financially resilient.

Inflation has had a significant impact on financial well-being in America. When inflation hit 9.1%in June 2022, 83% of Americans were concerned about rising prices. Even though inflation has eased to around 3%, 73% still express concern.

Inflation continues to shape Americans’ sense of financial well-being and spending decisions, even as rates of inflation have eased in recent years.

References:

1. https://www.consumerfinance.gov/consumer-tools/educator-tools/financial-well-being-resources/data-spotlight-financial-well-being-in-america-2017-2020/
2. https://www2.deloitte.com/us/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker/inflation-financial-wellbeing-consumer-spending-habits.html