Millions of Americans above the poverty line are living paycheck to paycheck, according to a study released by the Bank of America Institute, which states that some households with an income of $150,000 or more are barely making ends meet.
Paycheck to paycheck is defined by the report as households that dedicate 95% of its income to household expenses.
“More than a quarter of Americans, 26%, have necessary expenses that chew up more than 95% of their take-home pay, and nearly a third, 30%, of households, spend upwards of 90% of their income on critical bills like groceries, housing, utilities, gas, insurance, and child care,” Fox Business reported.
According to the study, every income bracket featured at least 20 percent of households struggling to get by.
Groceries
BLACK ENTERPRISE believes strongly that “health is wealth.” For that reason, being able to attain healthy food is essential to living a productive life. Unfortunately, the rise in inflation over the past couple of years has played a part in the rise in grocery spending. Post-pandemic inflation has risen causing the price of everyday goods to skyrocket by up to 20%.
The inflation on goods means that more and more families are having to sacrifice pricier items, like organic fruits and vegetables, in favor of less expensive options.
Housing
The housing market has seen a similar rise in prices as the landscape has quickly shifted into a seller’s market. Zillow cites the average home in the United States at upwards of $350,000. This median is an increase of about 2.7% from the previous year while for many Americans as wages have been relatively stagnant.
Child Care
The study defines childcare as daycare expenses and the costs of private schooling. The KPMG Parental Work Distribution Index released a report on the financial repercussions associated with childcare. Not only does the average American spend $11,000 a year on suitable childcare but they also lose wages if affordable and suitable childcare is unavailable.
“Between 1.2 and 1.5 million American workers—90% of whom are mothers—are missing work or cutting their hours every month due to limited, often unaffordable childcare options,” according to the report.
As 2024 is an election year, many of these issues are being talked about on a national stage daily. Presidential candidate Kamala Harris has offered up multiple plans to help Americans deal with these issues, including a $6,000 tax credit for the families of infants to help offset the rising costs of parenthood.
Harris has also vowed to “crack down on unfair mergers” that allow corporations to monopolize the price of goods.
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