SURVEY: For First Time Since 2020, More Middle-Income Households Rate Finances Negatively Than Positively
12 Outubro 2023 - 1:00AM
Business Wire
Nearly a quarter say financial situation is
impacting their relationships
Primerica, Inc. (NYSE: PRI), a leading provider of financial
services in the United States and Canada, released the
Middle-Income Financial Security Monitor™ (FSM™) for the third
quarter of 2023 — a national survey that measures changes in the
sentiments of middle-income families in the U.S. about their
finances.
For the first time in the survey’s history, more middle-income
Americans rate their personal finances negatively than positively.
Just over half (51%) say their finances are either not so good or
poor while less than half (49%) say they are excellent or good. In
addition, a large majority (72%) continue to say their income is
falling behind the cost of living, and less than one-fifth (15%)
believe the U.S. economy will be better off a year from now.
The financial outlook is negatively impacting many households on
a personal level. Nearly half (44%) of middle-income Americans say
they have felt depressed and almost two-fifths (38%) report finding
it difficult to sleep at night in the past month due to their
financial situation. In addition, almost a quarter (23%) say their
financial situation has impacted their relationship with their
spouse or partner. However, a plurality (46%) say their financial
situation hasn’t impacted them in any of these ways.
Households widely expect prices for necessities to rise in the
coming months. The majority foresee an increase in the cost of food
(77%), gas (75%), utilities (69%) and health care (64%). These
essential items are tracked by the Primerica Household Budget
Index™ (HBI™). The most recent HBI™ data shows that middle-income
Americans continue to struggle despite easing inflation.
“Middle-income families are under extreme financial stress,”
said Glenn Williams, CEO of Primerica. “The increased usage of
credit cards, alongside higher delinquency rates, reflects the
compounding effect of higher prices over multiple years. These
conditions led to less than half of middle-income families rating
their current financial situation positively.”
"Even though inflation has tempered significantly since its peak
in Summer 2022, the lower inflation rate present today still means
prices are rising overall and the pain from the quick run-up in
essential items is still very raw for middle-income households,”
said Amy Crews Cutts, economic consultant to Primerica. “All the
items tracked by Primerica's Household Budget Index≠™ were called
out as concerns - rising gas prices, utilities, food and healthcare
- yet the combined price index for these items fell in the third
quarter. Middle-income families may be experiencing some actual
budget relief from recent lower food and gas prices, but the holes
left in their wallets will take a while to heal as evidenced by the
majority now stating that their personal financial condition is not
'so good' or 'poor.'"
Key Findings from Primerica’s U.S. Middle-Income Financial
Security Monitor
- Credit card usage, debt on the rise. Nearly two-fifths
(37%) of respondents said their credit card usage increased in the
past year. Similarly, a third (34%) noted their credit card debt
increased over the past three months, and more than a quarter (28%)
say they are using their cards more often to keep up with rising
costs. Among the most frequently purchased items using credit
cards, respondents selected necessities such as gas (52%),
groceries (51%), health care (23%) and utilities (22%).
- Managing credit card debt hard for many. Despite a
significant majority (81%) saying they feel confident in knowing
how to pay down credit card debt, more than half (57%) find
managing this debt difficult and nearly two-thirds (64%) aren’t
sure what interest rate they pay. Still, the majority (74%) of
middle-income Americans say they either make the full payment or
more than the minimum on their balances each month.
- Those with student loan debt are concerned about its
impact. With student loan payments set to resume this month for
the first time in three years, two-thirds (66%) of middle-income
Americans with this debt say they are worried about being able to
afford necessities like groceries, gas, health care and utilities.
Those ages 35 to 49 are more concerned (70%) than those under the
age of 34.
- Many closely follow a financial budget. Among those who
say they create and follow a budget, a majority (79%) say they
stick to their plan. However, less than one-quarter (22%) say they
“very closely” follow it. In addition, four-fifths (80%) say the
rising cost of necessities, such as groceries and gas, has
influenced their desire to stick to a budget.
Topline Trends Data
Sept.
2023
Jun.
2023
Mar.
2023
Dec.
2022
Sep.
2022
Jun.
2022
Mar.
2022
Dec.
2021
Aug.
2021
How would you rate the condition of your
personal finances? (Reporting “Excellent” and “Good”
responses.)
Analysis: Respondents’ rating about the
condition of their personal finances has declined over the past
year.
49%
50%
52%
53%
53%
54%
60%
64%
65%
Overall, would you say your income is…?
(Reporting “Falling behind the cost of living” responses.)
Analysis: Concern about meeting the
increased cost of living has remained steady over the past several
months.
72%
71%
72%
72%
75%
75%
67%
68%
65%
Do you have an emergency fund that would
cover an expense of $1,000 or more (for example, if your car broke
down or you had a large medical bill)? (Reporting “Yes”
responses.)
Analysis: The percentage of Americans who
have an emergency fund that would cover an expense of $1,000 or
more has increased slightly over the past several months.
62%
61%
58%
59%
60%
61%
62%
60%
65%
How would you rate the economic health of
your community? (Reporting “Not so good” and “Poor” responses.)
Analysis: The economic health of
communities has remained steady the past three months.
55%
54%
59%
53%
55%
58%
52%
50%
54%
How would you rate your ability to save
for the future? (Reporting “Not so good” and “Poor” responses.)
Analysis: More than 70% continue to feel
it will be difficult to save for the future.
71%
71%
73%
74%
73%
72%
66%
62%
63%
In the past three months, has your credit
card debt…? (Reporting “Increased” responses.)
Analysis: Credit card debt has remained
steady over the past several months.
34%
33%
33%
39%
37%
29%
25%
28%
21%
About Primerica’s Middle-Income Financial Security
Monitor™
Polling was conducted online from September 14-18, 2023. Using
Dynamic Online Sampling, Change Research polled 1,150 adults
nationwide with incomes between $30,000 and $130,000.
Post-stratification weights were made on gender, age, race,
education, and Census region to reflect the population of these
adults based on the five-year averages in the 2021 American
Community Survey, published by the U.S. Census. The margin of error
is 3.3%.
About Primerica, Inc.
Primerica, Inc., is a leading provider of financial services to
middle-income households in North America. Independent licensed
representatives educate Primerica clients about how to better
prepare for a more secure financial future by assessing their needs
and providing appropriate solutions through term life insurance,
which we underwrite, and mutual funds, annuities and other financial
products, which we distribute primarily on behalf of third parties.
We insured over 5.7 million lives and had over 2.8 million client
investment accounts on December 31, 2022. Primerica, through its
insurance company subsidiaries, was the #3 issuer of Term Life
insurance coverage in the United States and Canada in 2022.
Primerica stock is included in the S&P MidCap 400 and the
Russell 1000 stock indices and is traded on The New York Stock
Exchange under the symbol “PRI.”
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version on businesswire.com: https://www.businesswire.com/news/home/20231011300499/en/
Public Relations Gana Ahn, 678-431-9266
gana.ahn@primerica.com Investor Relations Nicole Russell,
470-564-6663 nicole.russell@primerica.com
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