According to a new study from the Center for Financial Services Innovation, about half of Americans say their expenses are equal to or greater than their income. For those between the ages of 18 to 25, that figure roses to 54 percent.
“Half of America has no financial cushion,” Jennifer Tescher, president and CEO of CFSI which released the study, told CNNMoney. “They are living really close to the edge.”
The Center for Financial Services Innovation also found that 57 percent of American adults are struggling financially, and 43 percent struggle to pay bills and credit card payments. “We have a series of structural challenges in this country that require policy solutions,” Tescher said. “We need to remove the stigma of talking about money problems and make it clear that a lot of people are struggling.”
With one out of every two people spent the entire paycheck, it is likely you or someone you know. “It’s your co-workers, the receptionist, the guy mowing your lawn, the woman who takes care of your kids.” CFSI President Jennifer Tescher also pointed out: “If we are going to meaningfully and measurably address financial health in this country, we have to start with a deep understanding of consumer preferences, behaviors, and pain points.”