BOSTON—A new report confirms what many credit unions are experiencing among their own members: the divide between the “saves” and the “save-nots” is widening amid inflation, high housing costs and elevated interest rates.
According to the August 2025 edition of New Reality Check: The Paycheck-to-Paycheck Report from PYMNTS Intelligence, 68% of Americans live paycheck to paycheck. While that figure is slightly lower than in July, 25% of those households said they struggle to pay monthly bills, nearly matching the record high of a year earlier, PYMNTS reported.
The analysis found the typical U.S. household holds $9,869 in cash or other highly liquid assets, down 10.4% from 16 months earlier. Households struggling to pay bills reported just $2,336 on hand, a 27.3% decline. More than half of consumers cited rising costs as the biggest obstacle to saving, PYMNTS reported.
Bigger Cushions
At the same time, PYMNTS said it found those with financial breathing room are strengthening their cushions. Among the nation’s 164 million employed adults, average savings equaled 23% of income over the past six months. Two-thirds of workers saved at least 10% of their paychecks, including 32% who put away more than 30%.
But one-quarter saved 10% or less, and 8% spent more than they earned—more than 52 million people overall, according to PYMNTS.
Not surprisingly, the analysis found income plays a decisive role.
“Low- and middle-income households both saved 20% of earnings, while higher-income households put away an average of 30%,” PYMNTS reported. “Gen Z workers, despite lower incomes, reported setting aside the largest share of liquid assets relative to pay, suggesting caution early in their careers.”
Cost-of-Living Pressure
One thing everyone has in common is pressure from inflation, the report states. PYMENTS found that overall, 53% of Americans said higher living costs hindered their ability to save in the last six months. That rose to 58% among those living paycheck to paycheck but paying bills comfortably, and to 62% among those struggling.
“Even 39% of non-paycheck-to-paycheck consumers cited inflation as a barrier,” PYMNTS reported. “Unexpected expenses and debt payments were also key obstacles. Nearly one-third of consumers said they increased spending in the last six months because of inflation and uncertainty, while only 23% boosted savings. Among those already stretched thin, 34% reported spending more, double the rate of those who managed to save.”
Thin Safety Nets
Less than half of Americans—48%—said they feel very or extremely confident they could come up with $2,000 within 30 days for an emergency, the PYMNTS survey found. Only 15% of those struggling to pay bills felt secure. Even among households earning more than $100,000, more than one in four “expressed doubts,” PYMNTS found.
Optimism Outpaces Reality
Yet despite the challenges, 52% of consumers said they expect to save more in the next year, though only 24% did so in the past six months, according to the PYMNTS survey, which found Gen Z is most optimistic, with 72% expecting to boost savings, while just 30% of Baby Boomers expect the same.
Crypto in Focus
“One bright spot in alternative saving is cryptocurrency. About 8% of consumers hold crypto, averaging $4,017, or 28% of their liquid savings,” PYMNTS said. “Millennials make up 58% of crypto holders, and three-quarters are men. While most have higher incomes, six in 10 still live paycheck to paycheck.”
For the full report, go here.
