Parents feel financially squeezed, citing high prices as top worry
Is Inflation Crushing American Families?
A Federal Reserve survey highlights that while most Americans feel they are managing financially, concerns about rising prices persist, with 66% stating inflation has worsened their financial situation. Despite a slight decrease in overall financial well-being since 2021, 72% still believe they are doing okay or living comfortably. However, challenges such as child care costs and the ability to handle unexpected expenses remain significant, with one in three unable to afford a $400 surprise expense.
What specific financial struggles did parents with children under 18 face in the latest survey compared to 2021?
In the latest survey conducted by the Federal Reserve, parents with children under 18 faced significant financial struggles, particularly in the realm of child care expenses2. The survey revealed a notable decline in the financial well-being of this group, with only 64% of parents stating they were doing at least OK financially, a decrease from 75% in 2021. This decline is attributed to the high cost of child care, which for many families amounts to at least half as much as their housing costs2. The median monthly expense for child care was reported at $800, rising to $1,100 for those requiring more than 20 hours a week of care2. This substantial financial burden has contributed to the overall financial strain experienced by parents of young children.
What percentage of Americans reported they were "doing at least OK financially" according to the Federal Reserve's recent survey?
According to the Federal Reserve's recent survey, 72% of adults reported they were "doing at least OK financially." This is a slight decrease from 73% in 2022 and a larger drop from the 78% high in 2021. The survey provides insights into the financial well-being of Americans, showing that while family budgets have generally held steady over the last year, they are not as solid as they were two years ago during the pandemic relief payments.