The great American struggle: 72% women report financial stress compared to 67% of men, as per survey
2 min read . Updated: 22 Apr 2023, 06:00 AM IST
PremiumA significant number of Americans are facing financial struggles, with 58% of them relying on each paycheck to make ends meet, according to the survey.
Financial stress is on the rise in America as a result of the COVID-19 pandemic, with over 50% of adults reporting an increase in financial anxiety since the pandemic began in March 2020. The findings are part of the CNBC Your Money Financial Confidence Survey conducted in partnership with Momentive, which questioned 4,336 adults at the end of March.
The survey highlights the financial pressures facing Americans during the pandemic, with rising basic household expenses, inflation, and instability all contributing to increased anxiety. Women, in particular, are feeling the squeeze, with lower pay and higher childcare costs adding to their financial stress.
The rising cost of basic household expenses, including rent, groceries, and utilities, coupled with inflation, were cited as the primary drivers of financial stress for almost 60% of respondents.
Also Read: Is core inflation dipping for good?
Meanwhile, over a third of those surveyed cited economy-wide instability as a source of anxiety while rising interest rates and a lack of savings concerned 36% and 35% of respondents, respectively.
The survey found that many Americans are struggling financially, with 58% living paycheck to paycheck. As a result, credit cards are being used to cover any shortfalls, leading to a quarter of respondents reporting credit card debt as a contributing factor to their financial stress.
Higher borrowing rates on credit cards, auto loans, mortgages, and other debts are eating away at people's sense of financial security, with only 45% of US adults reporting having an emergency fund. Even those earning over $100,000 a year are feeling the squeeze, with 57% reporting financial stress.
The lack of financial security is felt more acutely by women, with 72% reporting financial stress compared to 67% of men. Women are also more likely to report living paycheck to paycheck and having no emergency savings. Experts attribute the gender difference to lower pay, higher costs of childcare, and the difference in financial education between boys and girls.
With people struggling to get by and many worried about the health of the US financial system, the survey highlights a lack of confidence in America's banking system, with only 13% of adults reporting feeling very confident.
The recent failures of Silicon Valley Bank and Signature Bank have contributed to this lack of confidence, with 42% of respondents saying that these failures have made them somewhat more concerned about their financial security.