Beyond the Budget: Inside the Paycheck-to-Paycheck Economy

PYMNTS Intelligence’s latest “New Reality Check: The Paycheck-to-Paycheck Report” surveyed 2,030 U.S. adult consumers from Sept. 8, 2025, to Sept. 26, 2025, to reveal how the cost of living is squeezing more households and softening consumer confidence. Personal savings now double as both a barometer and a goal. But many consumers, especially those with lower incomes and in rural areas, focus on simply covering essentials without taking on new debt. The following seven data points, each tied to a specific chart in the report, capture the current state of household finances.

The Paycheck-to-Paycheck Reality

Record Strain

The share of consumers struggling to pay bills climbed to a series high of 26%, capping a summer of rising financial stress. Younger consumers show the steepest recent deterioration. This marks a clear uptrend in households living on the financial edge, even before considering broader economic uncertainty.

The Paycheck-to-Paycheck Rural Squeeze

Financial strain is uneven, as 44% of households earning less than $50,000 a year and 34% of those in rural areas report difficulty paying bills. These shares are well above urban and higher-income peers. The data underscores how income and location compound financial vulnerability. Single adults and bridge millennials are also overrepresented among those struggling.

Economic Gloom

Confidence is fragile, as 46% of consumers feel pessimistic about the U.S. economy, versus 34% who are optimistic. Pessimism and personal outlooks are tightly linked, as 72% of those expecting their income to decline over the next year also think the economy will worsen.

Price Pressure

The day-to-day squeeze is broad. A high share (90%) of consumers report financial stress. This is led by food and grocery costs, cited by 56%. Among struggling households, housing costs and debt rise to the top and are three times more likely to be named primary stressors compared to those not struggling (17% vs. 6%).

Savings Barometer

When consumers gauge their financial health, savings lead, as 28% say savings (emergency or long-term) are the most reliable indicator, ahead of household income (31%). The ability to handle unexpected expenses also ranks as a key litmus test for roughly half of households. Still, those living paycheck to paycheck put income at the top.

Security Baseline

For those living paycheck to paycheck and struggling, financial security is basic, as 45% define it as covering everyday expenses without borrowing. Consumers who do not live this financial lifestyle equate security with having six months’ of cash savings for essential spending and the ability to make discretionary purchases without closely checking a budget.

The Paycheck-to-Paycheck Goal Gap

But even that modest target is elusive, as 46% of struggling consumers say covering regular expenses without borrowing is not achievable today. Meanwhile, 51% of consumers not living this financial lifestyle already make discretionary purchases without checking their budget. Another 41% see that as attainable—highlighting a widening divide in financial resilience.