Middle-Income Households Drive Surge in Financial Insecurity

The report, conducted with partners including the Aspen Institute and Morgan State University, surveyed 2,000 adults to map the widening scope of economic distress. While inflation and rising costs strain household budgets, the data shows that full-time employment no longer guarantees financial safety; 41% of those identifying as cash-poor work full-time, with nearly half forced to maintain side hustles to cover basic needs. The situation is increasingly generational, as Gen Z now represents a larger share of the cash-poor population than Baby Boomers.

Borrowing patterns reflect this systemic pressure, with consumers turning to high-cost credit products to bridge emergency gaps. Subprime credit cards remain the most expensive burden, costing Americans $17.4 billion annually. In contrast, peer-to-peer fintech solutions and earned wage access services represent lower-cost alternatives, though reliance on these tools has spiked 17% since the study’s 2023 debut. Rodney Williams, co-founder of SoLo Funds, noted that the persistent stereotype linking financial hardship exclusively to low-income households is increasingly disconnected from the reality facing modern American families.