Read our full analysis for a more in-depth look at these trends.
Paycheck to paycheck: Slowing but growing
Paycheck-to-paycheck growth slows, but lower-income Millennials and Gen X feel mounting pressure.
November 2025
Key takeaways
- According to Bank of America internal data, in 2025 nearly a quarter of all households are estimated to live paycheck to paycheck. Although there has been some increase in these households year-over-year (YoY), the pace of growth has slowed — down nearly 3 times from 2024 levels.
- Why the slowdown in growth? The number of lower-income households (especially Millennials and Gen X) living paycheck to paycheck continues to rise while there is almost no increase in the number of higher- and middle-income households.
- Regionally, there has been a decrease in the share of households living paycheck to paycheck across most of the South and West, but accelerating YoY cost increases could renew financial pressures in these regions.
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