Here’s How Much Each Generation Is Living Paycheck to Paycheck

©iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

If you set virtually nothing aside for savings each month, you’re living paycheck to paycheck. 

You’re not alone. A 2023 Forbes study found that 70% of Americans live paycheck to paycheck, while a 2023 LendingClub study put it at 73%. Another 2023 study by Payroll.org pins the number at 78% — a 6% rise year over year. 

Not all generations are living equally close to the edge, though. Here is how much each generation is living paycheck to paycheck.

Baby Boomers and Seniors

The LendingClub findings from March 2023 put the percentage of baby boomers living paycheck to paycheck at 49.5%. That’s the lowest of any generational cohort.

Different generations report different financial struggles. The Forbes study asked participants to list up to three financial challenges that have caused them to live paycheck to paycheck. Boomers have particularly struggled with the increase in cost of living (64.23%), in the wake of recent high inflation. The other two top challenges are high monthly bills (51.09%) and low income (49.64%). 

Generation X

At the peak of their earning years, a worrying 64.2% of Generation X Americans report living paycheck to paycheck.

Like boomers, they report struggling with high monthly bills (44.20%) and low income (44.20%); however, a whopping 43.12% also struggle with budgeting and financial planning, compared with just 3.65% of boomers. 

The percentage of younger generations living paycheck to paycheck only goes up from here. 

Millennials

Nearly three-quarters (73.2%) of millennials report living paycheck to paycheck. That’s the highest of any generational cohort. 

Even more millennials than Gen Xers struggle with budgeting and financial planning (57.08%). They further report challenges with high monthly bills (50.27%) and low income (41.96%). Nearly making the top three was paying for unexpected emergencies, a struggle that 38.69% of millennials face.

Generation Z

Only the oldest Generation Z members have joined the workforce, and nearly two-thirds (65.5%) of them live paycheck to paycheck.

A total of 64.44% of Gen Zers struggle with high monthly bills. Low income poses a problem for 57.78% of them, and unexpected emergencies derail nearly half (48.89%) of Gen Z budgets. 

Final Thoughts

As tempting as it sounds to spend your hard-earned money and live a little, carve out a solid savings rate now so it can compound over time. Given the power of compounding returns, little savings when you’re young goes further than massive savings as you get older.

Share This Article: