A new poll found that 70% of Americans feel stressed about their finances right now, as the U.S. continues to face significant headwinds under Joe Biden.
CNBC conducted a poll in partnership with Momentive and found that 58 percent of respondents said they live paycheck to paycheck.
The authors of the study explained:
According to a poll conducted by Momentive and CNBC, only 13% Americans feel confident in America’s bank system. This was based on a survey that Momentive and Momentive conducted in the weeks following the collapse of Silicon Valley Bank. The banking crisis isn’t the only thing that is weighing people down. 71% of people are worried about their finances and half feel that their financial stress has increased since the COVID-19 pandemic.
Over half (58%) of Americans describe their lives as being from paycheck to paycheck. This includes a third who have a household income of six figures. A majority of Americans don’t have an emergency fund to protect them from financial stress. 40% of those who do have less than $10,000 saved for such times.
As inflation hits double digits, so has the purchasing power of consumers. The cost of basic household expenses like rent, groceries, and utilities has all increased in recent years.
Nearly 60% of the respondents cited inflation as their main source of financial stress in a poll that was conducted between March 3rd and March 4. The next factors were rising interest rates (36%), inflation (43%) and a lack of savings (35%).
Bruce McClary, senior vice president of the National Foundation for Credit Counseling, stated that people are concerned about the future and fear they will have to borrow more to make ends meet. “Almost no part of the population is spared from the financial pressures we are experiencing at this time.
Even those who earn $100,000 or more are affected by financial stress. About a third of those earning six figures stated they live paycheck to paycheck. More than a quarter said that they don’t have an emergency fund.
A quarter of respondents said that they would invest $10,000 in stocks, bonds, or savings if given $10,000. Another option is to deposit the money in a high yield savings account. However, only 7 percent of participants said they would invest in stocks, while the same percentage stated that they would spend the money.
A survey revealed that men are more likely than women to invest $10,000 in the stock market. Only four percent of female respondents chose this option. Women were more likely to save the money in high-yield savings accounts or a combination stock, bond, and savings.
According to reports, American banks suffered a historic contraction in March’s final two weeks. This is a warning sign that credit conditions are getting worse due to deteriorating economic conditions.
Despite the dire economic situation facing ordinary Americans, President Joe Biden repeatedly downplayed its gravity while claiming that his economic plan is delivering remarkable results.