40% of Americans are living paycheck to paycheck, ill prepared for Coronavirus

[Catlady]

" The one oft-cited statistic is that 40% of Americans would struggle to come up with $400 to pay for an unexpected bill. That data comes from the Federal Reserve’s 2018 Survey of Household Economics and Decision Making.

There are plenty more examples (all from before the current crisis) that help explain the economic pain being felt, and evidenced in the jobless claim numbers.

According to Bankrate, nearly three in 10 Americans have no emergency savings whatsoever. Another report found that two-thirds of working millennials have nothing saved for retirement. Americans also hold more than $1.51 trillion in outstanding federal student loans, according to the Department of Education.

A “remarkable share of the households in the economy operate on a paycheck-to-paycheck basis,” Akabas said. “With that many Americans living a financially unstable life even in good times, there’s no way that they can have the backstop to survive the type of economic crisis that we are going to be going through in the next several weeks and months.”

https://finance.yahoo.com/news/the-...y-issues-in-the-economy-expert-194551680.html

 

[Aunt Bea]

When I was young I was in the same boat.

 

[Catlady]

When I was young I was in the same boat.

View attachment 96850

Sadly, me too, I never had an emergency fund until after I retired. Not enough money or common sense to do it before then. When you're young you feel invincible.

 

[Packerjohn]

Same bloody problem here in Canada. Most people driving big gas burning SUV, big trucks & with snow mobiles on the back. Many have trailers with 2 snow mobiles on the back. The trouble is cheap credit. No one seems to have the money but everyone is living on cheap credit. In the summer it's ATVs all over the place & sea doos on the water. Everyone here goes on 2 weeks holidays to the sunny south. Very few, in this country, live within their means. Our government talks about climate change but it's a bit of a joke when you see the way people live.

 

[bingo]

this pandemic will change lots of ways the newer generations think and plan.....the depression sure did

 

[Catlady]

this pandemic will change lots of ways the newer generations think and plan.....the depression sure did

I hope you're right, Bingo, but I doubt it. They'll just think ''this is a one-time thing, it will never happen again'' and back to living paycheck-to-paycheck.

 

[C'est Moi]

Some people have no choice; not everyone has a high-paying career and it takes a lot just to survive. Seems to me the world could do without so much judgement of others.

 

[WhatInThe]

It's not just the young. Although 'young' behavior got them into trouble I know 50-60 plus year olds who never grew up going out every night to a bar or restaurant along with buying the expensive car-oh it was a good deal. But a good deal is not a cheap or low price. There's a generation or too that grew up on the credit card. Also late bloomers, career changers etc. Also for the last 2 decades there's been several events that have led to economic upheaval. That being said one would've figure they would've learned their lessons. I was fortunate I guess getting laid off early in my career/work history so I learned before 30 save save save. I know people who have gotten laid off several times since their early 40s and have yet to learn their lesson.

 

[grahamg]

Some people have no choice; not everyone has a high-paying career and it takes a lot just to survive. Seems to me the world could do without so much judgement of others.

Mmmmmmmmmm.....

"Dishin' it out."

“I hope y'all are in the mood for butt-hurt, because I've got enough for everybody.” -- Natalie Dee

??????????????????(Pot and Kettle situation? ).

 

[Pepper]

Some people have no choice; not everyone has a high-paying career and it takes a lot just to survive. Seems to me the world could do without so much judgement of others.

I changed my 'like' to 'love'
You are so right.

 

[hollydolly]

Sorry Catlady...I'm not missing the point you're making, and it's horrible to have to rob peter to pay Paul, like you all I've been there... ( and not on credit like someone else said) but when I was at school, ''almost'' 3 in ten would have equated to around 29% quite a big difference from 40 % stated in the article... ..just saying.

Still not good but not almost half the population thank god...

 

[Gardenlover]

Some people have no choice; not everyone has a high-paying career and it takes a lot just to survive. Seems to me the world could do without so much judgement of others.

I can easily picture myself among them or much worse if an angel, I know as my wife, didn't remarkably intercede and take notice of me. I have more to say, but feel I share too much at times.

 

[hollydolly]

I can easily picture myself among them or much worse if an angel, I know as my wife, didn't remarkably intercede and take notice of me. I have more to say, but feel I share too much at times.

well IMO, unless you're giving out your social security number, your D.0.B and, or your full address...then share away, no-one knows ya... ...

 

[oldmontana]

40% of Americans are living paycheck to paycheck, ill prepared for Coronavirus

I think that has a lot to do with peoples depend on our government to take care of them.

Example...People that pay $5 for a coffee every day should be putting that money in a rainy day fund until they have enough to take care of a emergency.

 

[Gardenlover]

Hopefully mindsets have been changed for the better, time will tell.

 

[AnnieA]

I hope the crisis leads to prudence, but the Madison Avenue schmucks are Zooming from home thinking up new ways to entice people to spend beyond their means.

 

[exwisehe]

Same here. I borrowed, worked in the cafeteria, was a janitor (in my cottage). In summers I worked mostly mowing lawns and in grocery stores. Couldn't afford to continue college after 2 yrs. Had to borrow money to finish, while working in a bowling alley. I had no car until I graduated from college (after 6 yrs and a hitch in the army).

 

[Catlady]

Sorry Catlady...I'm not missing the point you're making, and it's horrible to have to rob peter to pay Paul, like you all I've been there... ( and not on credit like someone else said) but when I was at school, ''almost'' 3 in ten would have equated to around 29% quite a big difference from 40 % stated in the article... ..just saying.

Still not good but not almost half the population thank god...

Everything I wrote in my OP was copy/pasted from the article, that's why I used quotation marks. But, yes, I agree, 3 out of 10 IS 30%. It said in the article that 40% of people couldn't come up with $400 for an emergency.

 

[Don M.]

Much of the Middle Class has become complacent over the past 2 or 3 decades, and have been slowly putting savings as a low priority. The need to drive a new car, living in a nice house, enjoying nice vacations, etc., has eaten up any excess funds they might have had. Younger people are in debt, and saving very little. Even many retirees are living on the edge, and are just one major expense away from going into the hole. The "good times" have insulated a lot of people from Reality, and any major pullback in our economy puts millions at financial risk.

If there is Anything good about this major epidemic, it may hopefully induce a lot of people into taking a serious look at how they are managing their money. After all, everyone gets old, and spending the retirement years stressing about money is a miserable way to spend the Golden Years.

 

[Kadee]

I was saying to hubs just yesterday where are the average workers in Australia getting the money from to stockpile foods / and cleaning products ? many live payday to payday .

I went to three supermarkets last week end ( in Adelaide) before I was able to get a single bottle of dishwashing liquid and a bottle of cloths washing detergent.

I seen shoppers with 6 bottles of dish washing detergent in one shopping trolly .

It will be interesting to find out after the virus is hopefully a distant memory how many people have maxed out credit cards or redrawn on their mortgages to get the extra $$ to panic buy goods

 

[Judycat]

I couldn't afford to panic buy, but patience won out. It's always been that way for me.

 

[Catlady]

I can easily picture myself among them or much worse if an angel, I know as my wife, didn't remarkably intercede and take notice of me. I have more to say, but feel I share too much at times.

You might help someone by sharing. Like Holly aptly said, as long as you don't share vital info, you're safe here.

I've known people from both ends of the scale, the financially responsible and the ones that spend every penny they have and even tomorrow's paycheck and have no idea about the significance and meaning of ''needs and wants''. I'm one of the first now, but in my younger years I wasn't always careful with money and many times felt panicky and not able to make ends meet.

 

[hollydolly]

Everything I wrote in my OP was copy/pasted from the article, that's why I used quotation marks. But, yes, I agree, 3 out of 10 IS 30%. It said in the article that 40% of people couldn't come up with $400 for an emergency.

oh yes I realise it wasn't you giving those stats but taken from another source, I was just pointing out the disparity in case you hadn't noticed...

 

[Lee]

Sometimes there are good reasons people can get into debt, or at least it seems a good solid reason at the time. Some help out a desperate child by dipping into savings or worse by taking on a loan. Or medical bills, And then the interest piles up, especially for those who think a quick loan from one of those payday places just one time.....and it's never just one time.

Bad reasons to get into debt, booze, dope, gambling.

 

[Em in Ohio]

this pandemic will change lots of ways the newer generations think and plan.....the depression sure did

I really hope you are correct. After decades of preaching about living within your means and saving for a rainy day, I gave up. No one listened. I saw people go to check advance places (at horrible interest) so that they could get their hair extensions, manicures, tattoos /-;