Background on the Survey and Key Findings
According to a recent annual survey by the Federal Reserve, most American households reported no significant changes in their financial well-being over the past year. The survey, conducted in October among 12,295 individuals, captured the economic sentiment during the final weeks of the presidential campaign that saw Republican Donald Trump return to the White House.
The survey revealed that 73% of respondents stated they were “doing well financially” or “living comfortably,” a slight increase from 72% in 2023 but lower than the recent peak of 78% in 2021 when pandemic-related federal income support programs were fully operational.
Demographic Divisions
However, this overall positive outlook masked significant disparities among different demographic groups. Among those with a college degree, 87% reported being financially stable, unchanged from the previous year. In contrast, only 47% of adults without a high school diploma expressed the same sentiment.
Economic Perception vs. Personal Circumstances
While most respondents felt financially secure in their personal lives, their views on the overall economy differed. Only 29% considered the economy “good” or “excellent,” an improvement from 22% in 2023 but still far below the 50% who held this opinion before the pandemic in 2019.
Inflation Concerns and Spending Habits
Although inflation had moderated by the end of last year, it remained a significant concern for many. Sixty percent of adults reported that rising prices over the past year had worsened their financial situation, and 79% had altered their purchasing and spending habits as a result.
In 2023, 65% of respondents felt that inflation was negatively impacting their financial well-being.
Emergency Fund Availability
A crucial question regarding the availability of cash for unexpected expenses showed no significant changes. Sixty-three percent of adults stated they could cover a $400 unforeseen expense “using cash or its equivalent,” similar to the past two years but below 68% in 2021.
Key Questions and Answers
- What percentage of American households reported financial stability? 73% of respondents stated they were “doing well financially” or “living comfortably.”
- How did financial perceptions vary among demographic groups? While 87% of those with a college degree reported financial stability, only 47% of adults without a high school diploma shared the same sentiment.
- What percentage of respondents considered the overall economy to be “good” or “excellent”? Only 29% of respondents held this opinion, which, although an improvement from previous years, was still lower than pre-pandemic levels.
- How did inflation impact respondents’ financial situations? Sixty percent of adults reported that rising prices had worsened their financial situation, with 79% altering their spending habits as a result.
- What percentage of adults could cover an unexpected $400 expense? Sixty-three percent of respondents stated they could cover such an expense using cash or its equivalent, though this figure was lower than in 2021.
