H&R Block’s 2024 Outlook on American Life Report Reveals Most American’s Income Is Outpacing Inflation But Debt Threatens Future Prosperity
H&R Block's 2024 Outlook on American Life report reveals positive economic trends across generations. Based on analysis of 11.4 million tax returns and surveys of 7,852 Americans, the report shows that 66% of Americans feel optimistic about their financial future. 71% of Gen Z, 62% of Millennials, 56% of Gen X, and 51% of Boomers are earning income above inflation rates. Gen Z experienced a notable 30% earnings increase in 2023. However, debt remains a significant concern, with up to two-thirds of credit card holders reporting unmanageable debt levels. The report also highlights increasing trends in DINK households and investment participation, with 32% of tax filers reporting investment income in 2023.
Il rapporto sulla vita americana del 2024 di H&R Block rivela tendenze economiche positive tra le generazioni. Basato sull'analisi di 11,4 milioni di dichiarazioni fiscali e su sondaggi effettuati su 7.852 americani, il rapporto mostra che il 66% degli americani si sente ottimista riguardo al proprio futuro finanziario. Il 71% della Gen Z, il 62% dei Millennials, il 56% della Gen X e il 51% dei Boomers guadagnano redditi superiori ai tassi di inflazione. La Gen Z ha registrato un notevole aumento del 30% dei guadagni nel 2023. Tuttavia, il debito rimane una preoccupazione significativa, con fino a due terzi dei possessori di carte di credito che segnalano livelli di debito ingovernabili. Il rapporto evidenzia anche l'aumento delle tendenze nei nuclei DINK e nella partecipazione agli investimenti, con il 32% dei dichiarante che riporta redditi da investimento nel 2023.
El informe sobre la vida americana en 2024 de H&R Block revela tendencias económicas positivas a través de las generaciones. Basado en el análisis de 11.4 millones de declaraciones de impuestos y en encuestas a 7,852 estadounidenses, el informe muestra que el 66% de los estadounidenses se siente optimista sobre su futuro financiero. El 71% de la Gen Z, el 62% de los Millennials, el 56% de la Gen X y el 51% de los Boomers están ganando ingresos por encima de las tasas de inflación. La Gen Z experimentó un notable aumento del 30% en sus ingresos en 2023. Sin embargo, la deuda sigue siendo una preocupación significativa, con hasta dos tercios de los tenedores de tarjetas de crédito reportando niveles de deuda difíciles de manejar. El informe también destaca tendencias crecientes en los hogares DINK y la participación en inversiones, con el 32% de los declarantes informando ingresos por inversiones en 2023.
H&R Block의 2024 미국 생활 전망 보고서는 세대 간 긍정적인 경제 추세를 드러냅니다. 1,140만 건의 세금 신고서 분석과 7,852명의 미국인 설문 조사를 근거로 한 이 보고서는 66%의 미국인이 자신의 재정적 미래에 대해 희망적이라고 느끼고 있음을 보여줍니다. Gen Z의 71%, 밀레니얼 세대의 62%, Gen X의 56%, 그리고 베이비붐 세대의 51%가 인플레이션율을 초과하는 수입을 얻고 있습니다. Gen Z는 2023년에 30%의 눈에 띄는 수익 증가를 경험했습니다. 그러나, 부채는 여전히 중요한 문제로 남아 있으며, 신용 카드 보유자의 최대 2/3가 관리할 수 없는 수준의 부채를 보고하고 있습니다. 이 보고서는 DINK 가구와 투자 참여의 증가 추세도 강조하며, 2023년에 세금 신고자의 32%가 투자 소득을 신고했습니다.
Le rapport de H&R Block sur la vie américaine en 2024 révèle des tendances économiques positives à travers les générations. Basé sur l'analyse de 11,4 millions de déclarations fiscales et sur des enquêtes auprès de 7.852 Américains, le rapport montre que 66% des Américains se sentent optimistes quant à leur avenir financier. 71% de la génération Z, 62% des Millennials, 56% de la génération X et 51% des Baby Boomers gagnent des revenus supérieurs aux taux d'inflation. La génération Z a connu une augmentation remarquable de 30% de ses revenus en 2023. Cependant, la dette reste une préoccupation majeure, avec jusqu'à deux tiers des détenteurs de cartes de crédit signalant des niveaux de dettes ingérables. Le rapport souligne également des tendances croissantes dans les ménages DINK et la participation aux investissements, avec 32% des déclarants rapportant des revenus de placements en 2023.
H&R Blocks Ausblick auf das amerikanische Leben im Jahr 2024 berichtet von positiven wirtschaftlichen Trends über Generationen hinweg. Basierend auf der Analyse von 11,4 Millionen Steuererklärungen und Umfragen unter 7.852 Amerikanern zeigt der Bericht, dass 66% der Amerikaner optimistisch in die finanzielle Zukunft blicken. 71% der Gen Z, 62% der Millennials, 56% der Gen X und 51% der Boomers verdienen Einkünfte über den Inflationsraten. Die Gen Z erlebte 2023 einen bemerkenswerten Einkommensanstieg von 30%. Dennoch bleibt die Verschuldung ein erhebliches Problem, da bis zu zwei Drittel der Kreditkarteninhaber von unmanageable Schulden berichten. Der Bericht hebt auch steigende Trends in DINK-Haushalten und der Teilnahme an Investitionen hervor, wobei 32% der Steuerpflichtigen im Jahr 2023 von Kapitaleinkünften berichteten.
- 71% of Americans across generations are earning above inflation rates
- Gen Z showed 30% earnings increase in 2023
- Investment participation increased to 32% of tax filers, up from 27% in 2015
- Child Tax Credit reduced Americans' taxes by $74 billion in 2023
- Each generation shows higher buying power than previous generations at same age
- Two-thirds of credit card holders report unmanageable debt levels
- One in three taxpayers spent all or more than they earned last year
- One in six Americans hold potentially unmanageable student debt
- Nearly 20% of Americans lack one week of emergency savings
Insights
The comprehensive data analysis reveals significant insights into American financial health and generational wealth trends. The most striking finding is that
The rising trend of DINKS (doubled from
For HRB investors, this data suggests strong market positioning as younger generations show both financial sophistication and need for professional tax guidance, especially given their diverse income sources and investment activities.
The report demonstrates HRB's deep market penetration and data analytics capabilities, analyzing 11.4 million tax returns and conducting extensive surveys. This positions them uniquely in understanding evolving consumer financial behaviors and adapting services accordingly. The increasing complexity of tax situations - from side hustles to investment income - creates opportunities for premium service offerings and digital platform expansion.
The generational buying power increases (
The fourth annual report draws from 11.4 million tax returns and four nationwide surveys to illustrate how four generations of hardworking Americans are faring
KANSAS CITY, Mo., Nov. 12, 2024 (GLOBE NEWSWIRE) -- According to H&R Block’s 2024 Outlook on American Life report released today, Americans are optimistic about their economic mobility, and the data shows they have reason to be. The fourth annual report from H&R Block (NYSE: HRB) details how most Americans (
The analysis from this year’s Outlook on American Life report draws upon anonymized, aggregated tax return data from the 11.4 million tax filers who H&R Block tax professionals assisted virtually or in one of 9,000 offices during tax season 2024. Tax returns from the past 25 years were also utilized to identify historical income trends across generations.
The report also includes findings from four nationwide surveys of 7,852 Americans fielded between July and August 2024 to gather perspectives on how Americans feel about their current financial situations. All surveys were weighted to be nationally representative of gender, age, ethnicity/race, education and region. Among those surveyed were 1,503 Gen Z respondents, one of the largest surveys to date of Americans ages of 18 and 28.
Collectively, H&R Block analyzed billions of data points to paint a portrait of earning, investing, saving, career aspirations and debt trends among four generations—Gen Z, Millennials, Gen X and Boomers—representing hardworking Americans nationwide.
“Nearly 70 years of experience and preparing more than 20 million returns each year gives H&R Block a unique perspective on hardworking American’s financial situations and the behaviors that are shaping the economy,” said Curtis Campbell, President of Global Consumer Tax, H&R Block. “We understand that as the economy evolves, so do the needs of our clients. These insights, drawn from decades of anonymized, aggregated data and extensive research, enable us to help individuals, families and small businesses navigate their financial journeys.”
Each Generation Has Greater Income and Buying Power Than the Last
This year’s report found that most Americans, regardless of income and demographics, are optimistic about their income growth and ability to retire and maintain financial stability despite rising costs and debt. In fact, most Americans expect to exceed their parents’ economic opportunities, including
Tax-return data shows this optimism is well-founded:
Each generation has greater buying power as well. Gen Z is enjoying as much as
Shrinking Households, Market Gains and Tax Credits are Boosting Income
More Americans are opting not to have children, realizing a significant cost savings. On average, it costs
For those who do have kids, they are benefiting from tax credits. In 2023, the Child Tax Credit (CTC) collectively reduced Americans' taxes by
More Americans are benefiting from market gains as well. About
Gen Z Is Job-Hopping, State-Hopping, and Investing Their Way to Success
Gen Z is more innovative and financially savvy than Americans might expect. This generation is changing jobs at unprecedented rates primarily to increase their salary. Masters of the side hustle, they are also earning more by starting new businesses, following their passions, and investing.
One in three changed jobs last year and more than one-third did so to increase their salary. While a majority (
Nearly one in four (
Job-hopping Gen Zers changed state residency more than any other generation last year, moving to cities where they could capitalize on more lucrative career opportunities. The top destinations for Gen Z were New York, Chicago, Brooklyn, San Antonio, and Austin.
But Debt Is the Monster Lurking Under the Bed
While the cost of living might keep Americans awake at night, it’s debt that threatens to derail future financial stability. Gen X is carrying the most credit card debt (
Ongoing financial pressure and spending continue to undermine Americans’ ability to save. Nearly one in three taxpayers say they spent all or more than they earned last year. Almost one in five say that, without income, they wouldn’t be able to cover household expenses for a full week. Gen X is the most likely to be “not at all confident” that they are doing what is needed to meet longer-term goals, such as saving for retirement.
“No matter their life stage, or tax situation, H&R Block helps hardworking Americans receive the best possible outcome at tax time—with the care, dependability and expertise for which we are known,” said Campbell.
To learn more and read the full Outlook on American Life report, please visit www.hrblock.com/outlook-on-american-life/. To view media assets, including a downloadable report and infographics, visit www.hrblock.com/tax-center/media-kit/outlook-on-american-life-report-media-kit/.
1 “Annual Costs to Raise a Small Child Increased By
2 “Filing season statistics for week ending May 10, 2024,” IRS. https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-may-10-2024
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
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FAQ
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