More affluent Americans are living paycheck to paycheck

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why $150,000 doesn’t go as far as it used to.

Transcript

00:00I'm Conway Gibbs reporting from the New York Stock Exchange. Here's what we're watching on the street

00:03today. Tech stocks are strong across the board on Monday. Investors are anticipating big tech

00:08earnings which begin Tuesday with Google Parent Alphabet. McDonald's and Chipotle are two other

00:14notables set to release results. Meanwhile, the JOLTS survey which covers layoffs, turnovers,

00:20and quit rates will be released and we get a reading on consumer confidence. Speaking of

00:26consumer moves and habits, a new report suggests a higher number of six income families are now

00:32living paycheck to paycheck. According to a report by Bank of America, someone is living

00:37paycheck to paycheck when more than 95 percent of household income is used to cover bare necessities

00:43like shelter, food, transportation, utilities, and child care. The report says that's what's

00:49happening to 20 percent of U.S. households earning more than $150,000 a year. Bank of

00:55America used anonymous income and spending data from its customers' bank accounts. Conventional

01:01thinking may believe the more money people earn, the more disposable cash they have.

01:05The data, however, does not back that up. Authors of the report say high income earners

01:11also have high income bills. Quote, higher income households may have bought larger,

01:16more expensive homes and consequently have bigger mortgages and often along with bigger homes comes

01:22bigger insurance costs, property taxes, and utility bills. While inflation takes a heavier

01:29toll on those with smaller incomes, the report shows inflation as an equal opportunity drain on

01:35wallets. The cost of living is about 20 percent higher than it was before the pandemic, no matter

01:40what the take-home pay. That'll do it for your daily briefing from the New York Stock Exchange.

01:45I'm Conway Gittins with The Street.

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