LendingClub and PYMNTS Research Shows 86% of Consumers Live with One or More People, Yet Those Living with Only Partners or Spouses Reap the Financial Benefits
- 61% of US consumers live paycheck to paycheck, indicating stability in financial situations despite inflationary pressures.
- Consumers living with only a partner or spouse face less financial hardship.
- 43% of consumers live with family members to save money, while 30% cannot afford housing independently.
- Adult males are slightly more likely to live with parents than females, with 26% of financially struggling males living with parents.
- Gen Z is the generation most likely to stay with family members, with 58% living with family and 50% citing economic reasons.
- None.
Adult Males are Slightly More Likely to Live with Parents Than Their Female Counterparts
The Paycheck-to-Paycheck Landscape
In June 2023,
This stability in the financial situation of
Household Composition Determines Financial Lifestyle
Consumers living with only a partner or spouse are likely to face less financial hardship, while those with dependents and those living with friends or housemates are more likely to live paycheck to paycheck.
The research finds that
There is also a direct correlation among household size, stage of life and financial lifestyle. As household size increases, the ratio of income earners to non-earners typically falls, attributable to households with dependent children. When looking at the share of paycheck-to-paycheck consumers who live in a two-member household, the data finds that
"As household size increases, the ratio of income earners to household members typically falls, creating a higher likelihood of financial distress," said Alia Dudum, LendingClub's Money Expert. "The relationship between household income and household composition explains why many families tend to struggle financially and why millennials and bridge millennials, many of whom are in their peak child-rearing years, tend to remain financially vulnerable."
Economic Considerations Top Reason to Stay in the Family Household
Economics are the main driver for consumers to live with family longer, with
At one-fifth (
That said, consumers living with family members to offset expenses are not planning extended stays. For example, one-third of those consumers expect to move out in the coming year, particularly millennials and bridge millennials.
Financial Transparency Determined by Relationship Status
Financial transparency within shared households is paramount to ensure bills are paid and expenses are covered, but the transparency level depends on who consumers live with. Couples living together share financial information
Families and couples maintain outstanding credit card balances that are significantly higher, on average, than those of consumers who live alone. Consumers with children under the age of 18 average
"With today's inflationary pressures, sharing household finances has become not only common but crucial," continued Dudum. "The increasing complexity of modern lifestyles and the rising cost of living have necessitated a shift in the way consumers approach household finances. One person solely bearing the burden of managing all financial matters has become a minority practice. Instead, couples, families, and even roommates increasingly jointly navigate their economic realities, and it's a trend that is here to stay."
To view the full report, visit: https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-household-spending-shared-expenses/
Methodology
New Reality Check: The Paycheck-to-Paycheck Report — The Household Finances Deep Dive Edition is based on a census-balanced survey of 4,602
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the
Contact:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com
PYMNTS Contact: information@PYMNTS.com
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SOURCE LendingClub Corporation
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