Balancing household finances has become a widespread challenge as the cost of living increases. According to a PYMNTS Intelligence study, individuals who live with a partner or spouse are most likely to pool their funds to streamline their finances, with 87% sharing financial information and 76% sharing a joint Maintains a bank account.
With the rising costs of housing, food, and necessities, effectively managing household finances is becoming an increasingly difficult challenge for households across the United States, especially those in the following categories: 61% of Americans life From paycheck to paycheck As of June. The impact of these rising costs is pervasive, affecting families and individuals alike, regardless of household composition.
inhe “Detailed version of household finances” PYMNTS Intelligence for New Reality Check: The Paycheck-to-Paycheck Report draws insights from a survey of more than 4,600 U.S. consumers to take a closer look at the financial habits of consumers across a variety of household structures. .
According to the findings detailed in the study, lending club Together, there is a correlation between household size, life stage, and economic lifestyle. For example, consumers who live with a partner or spouse report less financial hardship than those who live with friends or cohabitants.
Additionally, people living in large households, especially those with dependent children, tend to face more financial hardship. In fact, households with young children are 12% more likely to live between paydays, indicating the increased financial responsibility that comes with raising a family.
The study also found that consumers are sharing living expenses as a strategy to alleviate these challenges, even if they do not fully integrate financial resources. Specifically, individuals who live with a partner or spouse are most likely to pool their assets, with 87% sharing financial information in common and 76% maintaining joint bank accounts, according to data from PYMNTS Intelligence. There is.
Financial connections extend to children living at home, with 45% of parents sharing financial information with their children and 34% allowing their children access to shared accounts.
“Among consumers who live with friends or roommates, splitting household and utility bills is the most common financial interaction, at 74%, followed by spending with parents and siblings. 51% of consumers who live with a partner or spouse, and 46% of consumers who live with a partner or spouse,” the study said. was also revealed.
Furthermore, it is common among consumers to borrow money from household members to make ends meet, with individuals primarily engaging in this behavior with parents or siblings (47%) and friends or housemates (44%). going.
Our data also found that 31% of consumers received financial assistance from a household member within the past year. Gen Z consumers lead this trend at 52%, followed by those living with parents or siblings at 51%. Individuals living in urban areas and individuals experiencing living paycheck-to-paycheck also indicate a higher propensity to receive such financial assistance, at 44% each.
In contrast, even fewer (17%) received financial support from individuals outside the household. Within this group, those living with friends or housemates (36%) and Gen Z (30%) are more likely to receive external financial support.
In summary, controlling spending and adjusting spending habits is critical for consumers as they navigate the challenges posed by rising costs and inflation. Amidst these challenges, the importance of budgeting, saving, and collectively paying living expenses cannot be overstated. By implementing these strategies, consumers, regardless of household size, can improve their financial well-being and reduce the burden of living paycheck-to-paycheck.
