Women Are More Likely to Be Living Paycheck to Paycheck, Study Finds

 In a recent survey conducted by Varo Bank, Morning Consult, and Thrive Financial Empowerment Services, it was found that inflation and rising interest rates have significantly impacted the financial stability of American women. The survey, which questioned 1,004 Americans in September, highlighted that 59 percent of employed adults in a paycheck-to-paycheck situation were women. Furthermore, 67 percent of financially fragile respondents, who were unable to cover a $2,000 unexpected expense within 30 days, were also women.

Although inflation has somewhat slowed due to a dip in gas prices, consumer prices, especially for essential items like housing, remain high. This, combined with sluggish wage growth, has put many women in a challenging financial position, despite the female labor force participation rate reaching a record high. The jobs available to women are often not providing sufficient income to break the cycle of living paycheck to paycheck.

The survey revealed that the top financial concerns for these individuals were covering basic living costs, lack of savings, and excessive debt. Nearly half of those surveyed admitted to sacrificing essential needs, such as healthcare, medication, or housing, due to financial constraints. Financial stress was also found to have a detrimental impact on both the physical and mental health of the respondents.

The data further indicated that over half of the individuals living paycheck to paycheck had not completed college, with 28.7 percent having attained a bachelor's degree. Most respondents were located in the South and had an annual household income ranging from $50,000 to $75,000.  

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