Primerica, Inc, a leading provider of financial services and products in the United States, has officially published results from its Financial Security Monitor™ (FSM™) survey for the third quarter of 2024.
According to certain reports, the survey would reveal that a majority of middle-income Americans are feeling increasingly pessimistic about their personal finances, the economic health of their communities, and their ability to save for the future.
Talk about the results on a slightly deeper level, we begin from its claim which says that middle-income Americans’ perceptions of their personal and community financial health continues to decline. More on the same would reveal how a majority of households (55%) now rate their personal financial situation negatively, marking a 6-point increase from the previous survey. Beyond that, significant majorities also view the economic health, beyond just their own personal finances, in a grim light. This includes their community (63% negative, up 5 points), the nation (73% negative, up 1 point), and their ability to save for the future (73% negative, up 5 points).
Next up, the report informs us on rising concern over credit card debt. In essence, more than one-third (35%) of middle-income Americans were found to say their credit card debt has risen in the past three months, marking a 5-point jump from the previous survey. Despite that being the case, less than one-third of respondents (31%) reported paying off their credit card in full each month. Furthermore, nearly half (44%) are said to be more worried about their credit card debt than they were a year ago. This marks a 9-point jump from the last survey, and at the same, also qualifies as the highest level of concern since the question was first introduced back in March 2023. On a brighter side, though, around two-thirds (69%) say they have reduced overall spending during the past couple years.
“The economy has turned more favorable in recent months, but it will take time for the effects of lower interest rates, declining prices on necessities and rising wages to have a real impact on the bottom lines of middle-income families,” said Amy Crews Cutts, Ph.D., CBE®, economic consultant to Primerica. “The financial challenges these households are grappling with are poised to persist through the end of this year — and likely beyond. It’s clear this is a marathon, not a sprint.”
Moving on, Primerica’s survey even touched on a wider uncertainty over the country’s economic future. While on one hand the share of households expecting the American economy to worsen in the next year has dropped significantly, with just 25% holding that view, a lot of that shift is driven by growing uncertainty. We say so because one-third (34%) of respondents, up 15 points, are currently unsure about the economy’s direction. However, going by the available details, optimism also ticked up, with 25% now believing the economy will improve over the next year, indicating a 7-point increase.
Among other things, the survey found that inflation remains the No. 1 concern for middle-income Americans, with over one-third (40%) citing it as a major worry — an 8-point increase since the last survey. Following up that up close, one-third (33%) now rank paying for food and groceries as their second biggest concern, something which has gone up by 7 points. In case that wasn’t enough, when asked to describe their feelings about their finances, a majority (58%) chose “stressed,” while nearly half (43%) selected “discouraged.”
Rounding up highlights would be a piece of detail where it was revealed that almost half middle-income Americans can’t afford to go to the doctor. This became clear after they were asked to choose what they could afford from a list and only half said they could cover the cost of a doctor’s visit. Making the given finding even more grave is a fact that more than a quarter (27%) expressed concern about their health or getting sick, a concern which would go onto become the third top worry for these households.
