Who would have thought that some Americans felt more financially secure at the tail end of the pandemic than they do now?
According to a report released by the Federal Reserve, the number of Americans saying they are "doing at least OK financially" is still high but has decreased in the past several years as household finances are adjusting to the end of pandemic relief payments coupled with higher inflation.
NPR reports that the survey, conducted last fall, found that 72% of adults are living comfortably financially or at least doing OK. While that seems pretty high, it’s slightly down from 73% in 2022 and 78% in 2021. The yearly survey asks thousands of people about their household finances, including income, savings, and expenses.
Families with children under 18 are particularly feeling the squeeze, as child care often costs at least half as much as their housing. The median monthly cost for child care was $800, or $1,100 for those using more than 20 hours a week.
Although inflation continues to decrease, two in three Americans say rising prices have made their financial situation worse, including 19% who say they're much worse off. The number of respondents saying they could cover an unexpected $400 expense with savings has remained the same since 2022 but is slightly down from 2021.
Responding to a new survey question about home insurance, which has seen double-digit price increases in the last year, Federal Reserve Board Gov. Michelle Bowman said, "This perspective continues to help the Federal Reserve better understand how families are coping with the ongoing economic challenges they face."
