A growing number of Americans continue to live pay cheque to pay cheque, with 68.2% of consumers reporting that they rely on monthly income to meet their expenses, according to the latest New Reality Check: The Paycheck-to-Paycheck Report by PYMNTS Intelligence. The study, which surveyed 2,040 American adults from May 1 to May 21, 2025, presents a worrisome image of the nation’s financial stability. Although some customers are able to survive, a sizable percentage are having difficulty paying even their most basic expenses.
What are the findings of the study?
The study reveals that 1 in 4 cannot even pay their monthly bills without falling behind. The percentage of consumers living pay cheque to pay cheque and having trouble paying their monthly bills has increased significantly from 41.7% in May 2023 to 44.2% in May 2025. On the other hand, 24.2% of respondents claim to live comfortably from pay cheque to pay cheque, a group that has barely improved in the last 12 months. In two years, the percentage of Americans who depend on their pay cheques to make ends meet has increased from 57% to 68.2%, it can be due to increasing pressures of inflation, high interest rates, and rising household economic uncertainty. The rising trend among those struggling indicates increased economic vulnerability, even though the percentage of consumers who have no trouble paying their bills has stayed largely constant. Notably, there is now a greater disparity between people who are comfortably living pay cheque to pay cheque and those who are struggling financially.
How consumers feel about financial stress?
The glaring disparities in financial comfort levels among American age groups, income brackets, and financial lifestyles. Nearly one in four Americans (23.8%) report feeling anxious about their finances, compared to 39.8% of the general population who feel comfortable about their financial situation. The percentage is much higher among those who live pay cheque to pay cheque. Just 25.9% of consumers who are having financial difficulties say they are financially comfortable, while 46.5% report feeling anxious, which is twice the overall rate. Those who are not living pay cheque to pay cheque, on the other hand, exhibit a much more optimistic attitude, with 61.1% reporting comfort and only 10.3% experiencing anxiety.
This comfort is shaped in large part by income. Just 18.6% of Americans with yearly incomes over $100,000 report financial anxiety, compared to nearly 47% who feel comfortable. This is significantly different for households with less than $50,000, where only 28.8% feel financially secure and 32% experience anxiety. While millennials and Gen Z seem more vulnerable, with only 34.4% of each group reporting feeling financially secure, baby boomers and seniors report the highest levels of comfort in terms of age, at 44%. Younger Americans seem to be more concerned about their financial future despite changes in earnings and spending patterns across generations.
Budgeting style and financial anxiety
According to the report, Americans who actively manage their budgets report much lower levels of financial anxiety. The highest percentage of consumers who feel financially comfortable is 47.1% among those classified as advanced budgeters, or those who use sophisticated tools or techniques to control their spending. By contrast, only 19.1% of this group say they experience financial anxiety. Basic budgeters, on the other hand, who keep simpler records of their spending, exhibit lower levels of comfort (34.2%) and higher levels of anxiety (26.5%). Remarkably, people who don’t use any budgeting tools perform similarly in terms of anxiety (26.5%) but better than basic budgeters in terms of comfort (38.6%), indicating that irregular or insufficient budgeting may not reduce financial stress.
The results show a distinct pattern: consumers are more likely to feel in control of their finances if they manage their money with intention and structure. Budgeting may be an important strategy for increasing consumer confidence and emotional well-being, as financial anxiety is still pervasive in the face of inflation and economic uncertainty.