The Los Angeles Post
U.S. World Business Lifestyle
Today: March 16, 2025
Today: March 16, 2025

Many Americans say their household expenses are outpacing earnings this year, AP-NORC poll shows

AP Poll Personal Finances
October 27, 2023
CORA LEWIS - AP

NEW YORK (AP) โ€” About 2 in 3 Americans say their household expenses have risen over the last year, but only about 1 in 4 say their income has increased in the same period, according to a new poll from The Associated Press-NORC Center for Public Affairs Research.

As household expenses outpace earnings, many are expressing concern about their financial futures. Whatโ€™s more, for most Americans, household debt has either risen in the last year or has not gone away.

Steve Shapiro, 61, who works as an audio engineer in Pittsburgh, said heโ€™d been spending about $100 a week on groceries prior to this past year, but that heโ€™s now shelling out closer to $200.

Many Americans say their household expenses are outpacing earnings this year, AP-NORC poll shows
AP Poll Personal Finances

โ€œMy income has stayed the same,โ€ he said. โ€œThe economy is good on paper, but Iโ€™m not doing great.โ€

About 8 in 10 Americans say their overall household debt is higher or about the same as it was a year ago. About half say they currently have credit card debt, 4 in 10 are dealing with auto loans, and about 1 in 4 have medical debt. Just 15% say their household savings have increased over the last year.

Tracy Gonzales, 36, who works as a sub-contractor in construction in San Antonio, Texas, has several thousand dollars of medical debt from an emergency room visit for what she thought was a bad headache but turned out to be a tooth infection.

โ€œThey'll treat you, but the bills are crazy,โ€ she said. Gonzales said she's tried to avoid seeking medical treatment because of the costs.

Many Americans say their household expenses are outpacing earnings this year, AP-NORC poll shows
AP Poll Personal Finances

Relatively few Americans say theyโ€™re very or extremely confident that they could pay an unexpected medical expense (26%) or have enough money for retirement (18%). Only about one-third are extremely or very confident their current financial situation will allow them to keep up with expenses, though an additional 42% say theyโ€™re somewhat confident.

โ€œIโ€™ve been looking forward to retirement my entire life. Recently I realized itโ€™s just not going to happen,โ€ said Shapiro, of Pittsburgh, adding that his wifeโ€™s $30,000 or so of student debt is a financial factor for his household. The couple had hoped to sell their house and move this past year, but decided instead to hold on to their mortgage rate of 3.4%, rather than facing a higher rate. ( The current average long-term mortgage rate reached 7.79% this month. )

About 3 in 10 Americans say they've foregone a major purchase because of higher interest rates in the last year. Nearly 1 in 4 U.S. adults have student debt, with the pandemic-era payment pause on federal loans ending this month, contributing to the crunch.

Will Clouse, 77, of Westlake, Ohio, said inflation is his biggest concern, as he lives on a fixed income in his retirement.

Many Americans say their household expenses are outpacing earnings this year, AP-NORC poll shows
AP Poll Personal Finances

โ€œA box of movie candy โ€” Sno-Caps โ€” that used to cost 99 cents is now a dollar fifty at the grocery store," he said. โ€œThatโ€™s a 50% increase in price. Somebodyโ€™s taking advantage of somebody."

Yet even as Americans have expressed gloomy sentiments about the economy, many have continued spending, which drove a strong quarter of growth from July though September, when the economy expanded at an annual pace of 4.9%.

Even so, wages and salaries have largely trailed inflation since the pandemic, leaving most households worse off, though economists debate which measures are the best to use. In the past 12 months, however, average hourly pay has started to pull ahead of prices, rising 0.5% faster.

Americans are generally split on whether the Republicans (29%) or the Democrats (25%) are better suited to handle the issue of inflation in the U.S. Three in 10 say they trust neither party to address it.

Geri Putnam, 85, of Thomson, Georgia, said she's been following the ongoing auto workers strikes with sympathy for the workers' asks.

โ€œI don't think it's out of line, what they're asking for, when you see what CEOs are making,โ€ she said. "I think things have gotten out of control. When you can walk into a store and see the next day, across the board, a dollar increase โ€” thatโ€™s a little strange. I understand supply and demand, the cost of shipping, et cetera. But it seems to me everyoneโ€™s looking at their bottom lines.โ€

Putnam also said she sees her six children struggling financially more than her generation did.

โ€œThey all have jobs and have never been without them," she said. "Theyโ€™re achievers, but I think at least two or three of them will never be able to buy a home.โ€

A slight majority of all Americans polled (54%) describe their householdโ€™s financial situation as good, which is about the same as itโ€™s been for the last year but down from 63% in March of 2022. Older Americans are much more confident in their current finances than younger Americans. Just 39% of 18- to 29-year-olds describe their household finances as good, compared to a majority (58%) of those who are 30 and older. People with higher levels of education or higher household incomes are more likely than Americans overall to evaluate their finances as solid.

About three-quarters of Americans describe the nationโ€™s economy as poor, which is in line with measurements from early last year.

Among those who are retired, 3 in 10 say they are highly confident that thereโ€™s enough saved for their retirement, about 4 in 10 are somewhat confident, and 31% are not very confident or not confident at all.

Clouse, of Ohio, said the majority of his money had gone towards caring for his wife for the past several years, as she'd been ill. When she passed away this past year, his household lost her Social Security and pension contributions. He sees the political turmoil between Republicans and Democrats as harming the economy, but remains most frustrated by higher prices at the supermarket.

โ€œGrocery products going up by 20, 30, 40%. Thereโ€™s no call for that, other than the grocery market people making more money,โ€ he said. โ€œTheyโ€™re ripping off the consumer. I wish Mr. Biden would do something about that.โ€

About 4 in 10 Americans (38%) approve of how Biden is handling the presidency, while 61% disapprove. His overall approval numbers have remained at a steady low for the last several years. Most Americans generally disapprove of how heโ€™s handling the federal budget (68% disapprove), the economy (67%), and student debt (58%).

___

The poll of 1,163 adults was conducted Oct. 5-9, 2023, using a sample drawn from NORCโ€™s probability-based AmeriSpeak Panel, designed to represent the U.S. population. The margin of sampling error for all respondents is plus or minus 3.9 percentage points.

Related Articles

Bank of Canada cuts rates by 25 bps, warns of tariff crisis US inflation cooled last month, though trade war threatens to lift prices Dollar edges higher as markets weigh trade tensions Japan's wholesale inflation hits 4%, keeps BOJ rate-hike bets alive
Share This

Popular

Americas|Economy|World

Cuba suffers major power outage after substation failure leaves millions without electricity

Cuba suffers major power outage after substation failure leaves millions without electricity
Economy|Political|US

DOGE makes cuts at IRS. Hereโ€™s what the employees are saying

DOGE makes cuts at IRS. Hereโ€™s what the employees are saying
Economy|Political|US

Trump signs a bill funding the government for 6 months, avoiding a shutdown

Trump signs a bill funding the government for 6 months, avoiding a shutdown
Americas|Economy|Political|World

Cuba struggles to restore power to millions as night falls

Cuba struggles to restore power to millions as night falls

Economy

Business|Economy|Political|US

โ€˜โ€˜Deleteโ€™ is one of their favorite termsโ€™: Inside DOGEโ€™s IRS takeover ahead of tax season

โ€˜โ€˜Deleteโ€™ is one of their favorite termsโ€™: Inside DOGEโ€™s IRS takeover ahead of tax season
Americas|Economy|Political|World

Cuba suffers nationwide power outage, plunging millions into darkness

Cuba suffers nationwide power outage, plunging millions into darkness
Business|Economy|Europe|Food|US

Tariffs got you down? How to substitute European wines for American alternatives

Tariffs got you down? How to substitute European wines for American alternatives
Business|Economy|Finance|Political|Stock Markets|US

With Trump's zigzag actions on trade, March came in like a lion and won't be going out like a lamb

With Trump's zigzag actions on trade, March came in like a lion and won't be going out like a lamb

Access this article for free.

Already have an account? Sign In