Storch Advisors CEO Gerald Storch discusses the state of the American consumer heading into the holidays on “Varney & Co.”
As Americans still feel the effects of rising prices, many think they should bring home at least $100,000 a year to not worry about daily living expenses, according to recently released data.
Edelman Financial Engines said Monday that 58% of Americans said their concerns about daily expenses would be alleviated if they received this level of annual income.
Higher percentages of Americans in their 30s and 40s said they needed to earn at least $100,000 compared to older groups, the company found. For people in their 30s, the share was 71%, while 75% in their 40s cited that figure.
woman counting money in modern office (iStock/iStock)
These findings were among the company’s latest findings Study “Everyday wealth in America” which surveyed 3,000 Americans aged 30 or older, including 1,500 “affluent” individuals aged 45 to 70, online between June 12 and July 3.
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Meanwhile, for a quarter of all Americans, $200,000 was the minimum amount required. annual salary necessary to banish the stress of daily spending, Edelman Financial Engines reported.
A couple reviews their finances at home. (iStock/iStock)
This data comes as Americans have been facing high inflation and a high cost of living for some time.
In August, inflation as measured by the Consumer Price Index, rose 0.2% month-over-month and 2.5% year-over-year in August, which the Bureau of Labor Statistics called it “the smallest year-over-year increase since February 2021,” FOX Business previously reported.
Food and housing costs are a problem for American consumers. Food prices in August remained 2.1% higher than a year ago, while housing prices rose 5.2% over the same period, according to the CPI.
The extensive Edelman Financial Engines study also showed that only 12% of Americans consider themselves wealthy.
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According to the data, nearly two-thirds of Americans who don’t fall into this category said having $1 million would make them feel rich.
About 44 percent of Americans “view credit cards (relative to other types of debt) as the greatest threat to their ability to build wealth,” according to the study.
Amin Dabit of Edelman Financial Engines said in a statement accompanying the newly released study that Americans “don’t feel overly confident about the state of their finances.”
Woman looking at paper bill and counting expenses, budget planning and domestic finance management (Lazy_Bear/iStock / Getty Images)
“Some of these concerns come from external pressures, such as inflation or turbulent electoral economy“, while some are individual pressures, such as family responsibilities and increasing credit card debt,” he said. “Through this research, we are learning more about how these different factors combine to impact how Americans perceive and realize their wealth.”
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Overall, the economy and personal finances were the top drivers of Americans’ anxiety, with 49% calling the former the “biggest source” and 48% citing the latter, according to Edelman Financial Engines. About 37% said politics.
Building emergency savings, growing wealth and saving for retirement were among the “top three financial goals” Americans reported this year.
Eric Revell contributed to this report.
