Wages & Wellbeing study from Instant Financial shows 54% of working Americans worry several times a week or more about making money last until their next payday
ATLANTA, July 11, 2022 /PRNewswire-PRWeb/ -- Instant Financial, the pioneer of fee-free on-demand pay solutions, partnered with the Center for Generational Kinetics, to conduct a comprehensive study of the state of financial security amongst working Americans as well as the effects and perceptions of wage frequency. The study shows that 51% of workers in the United States are short on money before they get to payday in 2022, a significant increase from 24% in 2018. Further, more than half of working Americans worry several times a week or more often about making their money last until their next payday – significantly higher than 29% in 2018.
Today's findings highlight how paychecks aren't stretching out as far as they did in prior years for workers across the country. The Bureau of Labor Statistics reported the amount paid by consumers for goods and services in May was up 8.6% over the same time last year – the fastest increase in more than 40 years. In fact, with gas prices, housing costs and grocery bills on the rise, the current rate of inflation means that American workers effectively took a country-wide pay cut in April.
Even High Earners Live Paycheck to Paycheck
But living paycheck-to-paycheck isn't only affecting a specific tax bracket, because consumers today are facing an unprecedented level of economic uncertainty. As of April 2022, 61% of consumers reported that they were living paycheck to paycheck, a number that only drops to 36% for high earners making more than $250,000. This level of financial insecurity is the reason more than 30% of American workers report having gone to work while they were sick or skipping a meal to save money.
"More working Americans are living paycheck-to-paycheck, coupled with the rising cost of gas and groceries, yet the frequency of pay hasn't changed over the past 100 years." said Tal Clark, CEO of Instant Financial. "It's time to break the stigma around living paycheck to paycheck. No one should ever work all day and then have to worry about how they are going to buy dinner for their family or put gas in their car to get home."
Responsible Earned Wage Access
With 60% of working Americans saying they would be better able to plan for their financial future if they were able to immediately access their earned pay after every day's work, it's clear that implementing an earned wage access (EWA) program can minimize the adverse effects of economic challenges like rising gas prices, inflation and supply chain disruptions.
To meet the demands of millions of employees and employers across the country, Instant Pay is the only on-demand pay solution that gives employees a full banking experience, free of predatory fees. With Instant Pay, employees are able to get paid their earned wages at the end of every work day, with no cost to them or to their employers.
About the Study
The survey of 1,000 employed full-time or part-time US labor force participants, aged 16-55, was conducted by the Center for Generational Kinetics from April 9, 2022, to April 20, 2022. The margin of error is +/-3.1 percentage points.
To download a copy of the Wages and Wellbeing study from Instant Financial, visit https://www.instant.co/resource/earned-wage-study/.
About Instant Financial
Instant Financial is leading the charge to provide financial freedom and wellness to millions of workers in the United States through its earned wage access solutions. By enabling employers to allow employees to access their daily wages immediately after their shift, Instant Financial helps organizations improve retention and reduce absenteeism while helping employees take control of their financial freedom by bridging the gap between work day and payday. Learn more about Instant Financial at http://www.instant.co.
About Center of Generational Kinetics
The Center for Generational Kinetics, LLC (CGK) is the leading research, advisory, and speaking firm focused on uncovering key emerging trends, generational change, and behavioral insights. CGK's team leads original research around the world to solve important consumer and workforce challenges. The firm uncovers new and unexpected, statistically accurate insights for innovative, market-leading clients. CGK's team has worked with over 700 companies around the world, from the biggest global consumer brands to governments, technology pioneers, financial services, retailers, and global banks.
Media Contact
Amelia Wright, ARPR, on behalf of Instant Financial, 617-429-7857, [email protected]
Ryan Ashton, Instant Financial, 604-364-3361, [email protected]
SOURCE Instant Financial
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