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National Survey: Middle-Income Families Are Feeling Increasingly Negative About Personal Finances Despite an Uptick in Purchasing Power

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Primerica's Q3 2024 Financial Security Monitor™ survey reveals middle-income Americans are increasingly pessimistic about their finances, despite an uptick in purchasing power. Key findings include:

1. 55% rate their personal financial situation negatively, a 6-point increase from the previous survey.
2. 35% report increased credit card debt in the past three months, a 5-point jump.
3. Inflation remains the top concern (40%), followed by paying for food and groceries (33%).
4. Only 51% can afford a doctor's visit.
5. The Household Budget Index™ reached 102.2% in August 2024, up from 97.2% a year ago.

Despite economic improvements, the lingering effects of pandemic-era inflation continue to impact middle-income families' financial outlook.

Il sondaggio Financial Security Monitor™ di Primerica per il terzo trimestre 2024 rivela che gli americani a medio reddito sono sempre più pessimisti riguardo le loro finanze, nonostante un aumento del potere d'acquisto. I principali risultati includono:

1. Il 55% valuta negativamente la propria situazione finanziaria personale, un aumento di 6 punti rispetto al sondaggio precedente.
2. Il 35% riporta un aumento del debito delle carte di credito negli ultimi tre mesi, un incremento di 5 punti.
3. L'inflazione rimane la principale preoccupazione (40%), seguita dai costi per cibo e generi alimentari (33%).
4. Solo il 51% può permettersi una visita medica.
5. L'Indice del Budget Familiare™ ha raggiunto il 102,2% nell'agosto 2024, rispetto al 97,2% di un anno fa.

Nonostante i miglioramenti economici, gli effetti persistenti dell'inflazione dell'era pandemica continuano a influenzare le prospettive finanziarie delle famiglie a medio reddito.

La encuesta Financial Security Monitor™ de Primerica para el tercer trimestre de 2024 revela que los estadounidenses de ingresos medios son cada vez más pesimistas sobre sus finanzas, a pesar de un aumento en el poder adquisitivo. Los hallazgos clave incluyen:

1. El 55% califica negativamente su situación financiera personal, un aumento de 6 puntos respecto a la encuesta anterior.
2. El 35% informa un aumento en la deuda de tarjetas de crédito en los últimos tres meses, un salto de 5 puntos.
3. La inflación sigue siendo la principal preocupación (40%), seguida por el costo de alimentos y comestibles (33%).
4. Solo el 51% puede permitirse una visita al médico.
5. El Índice de Presupuesto Familiar™ alcanzó el 102,2% en agosto de 2024, frente al 97,2% de hace un año.

A pesar de las mejoras económicas, los efectos persistentes de la inflación de la era pandémica continúan afectando las perspectivas financieras de las familias de ingresos medios.

프라이머리카의 2024년 3분기 금융 보안 모니터™ 설문조사는 중간 소득 미국인들이 재정에 대해 점점 더 부정적인 시각을 가지고 있음을 보여줍니다, 구매력이 증가했음에도 불구하고. 주요 결과는 다음과 같습니다:

1. 55%가 개인 재정 상황을 부정적으로 평가하며, 이는 이전 설문조사보다 6포인트 증가한 수치입니다.
2. 35%가 지난 3개월 동안 신용 카드 부채가 증가했다고 보고하며, 5포인트 상승했습니다.
3. 인플레이션이 여전히 주요 우려 사항(40%)으로, 식료품 및 장보기 비용(33%)이 뒤따릅니다.
4. 단 51%만이 의사 방문을 감당할 수 있습니다.
5. 가계 예산 지수™가 2024년 8월에 102.2%에 도달했으며, 작년 97.2%에서 증가했습니다.

경제적 개선에도 불구하고, 팬데믹 시대의 인플레이션이 중간 소득 가정의 재정 전망에 지속적인 영향을 미치고 있습니다.

Le sondage Financial Security Monitor™ de Primerica pour le troisième trimestre 2024 révèle que les Américains à revenu moyen sont de plus en plus pessimistes quant à leurs finances, malgré une augmentation du pouvoir d'achat. Les principales conclusions incluent :

1. 55% jugent leur situation financière personnelle négativement, soit une augmentation de 6 points par rapport au sondage précédent.
2. 35% rapportent une augmentation de leur dette de carte de crédit au cours des trois derniers mois, soit une augmentation de 5 points.
3. L'inflation reste la principale préoccupation (40%), suivie des frais pour la nourriture et les courses (33%).
4. Seul 51% peuvent se permettre une visite chez le médecin.
5. L'indice du budget ménager™ a atteint 102,2% en août 2024, contre 97,2% l'an dernier.

Malgré des améliorations économiques, les effets persistants de l'inflation de l'ère pandémique continuent d'impacter les perspectives financières des familles à revenu moyen.

Die Umfrage Financial Security Monitor™ von Primerica für das dritte Quartal 2024 zeigt, dass US-Bürger mit mittlerem Einkommen zunehmend pessimistisch gegenüber ihren Finanzen sind, trotz eines Anstiegs der Kaufkraft. Zu den wichtigsten Ergebnissen gehören:

1. 55% bewerten ihre persönliche finanzielle Situation negativ, ein Anstieg von 6 Punkten im Vergleich zur vorherigen Umfrage.
2. 35% berichten von gestiegenen Kreditkartenschulden in den letzten drei Monaten, ein Anstieg um 5 Punkte.
3. Die Inflation ist nach wie vor die größte Sorge (40%), gefolgt von den Kosten für Lebensmittel und Grundnahrungsmittel (33%).
4. Nur 51% können sich einen Arztbesuch leisten.
5. Der Haushaltsbudget-Index™ erreichte im August 2024 102,2%, verglichen mit 97,2% vor einem Jahr.

Trotz wirtschaftlicher Verbesserungen wirken sich die anhaltenden Folgen der Inflation aus der Pandemiezeit weiterhin auf die finanziellen Aussichten von Familien mit mittlerem Einkommen aus.

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Households continue to slowly climb out of the pandemic-era financial hole caused by inflation

DULUTH, Ga.--(BUSINESS WIRE)-- Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products in the United States and Canada, released its Financial Security Monitor™ (FSM™) survey for the third quarter of 2024, revealing that a majority of middle-income Americans are feeling increasingly pessimistic about their personal finances, the economic health of their communities and their ability to save for the future.

Primerica Household Budget Index™ - Spending power reached its highest level since February 2021 in August 2024. The average purchasing power for middle-income families was <percent>102.2%</percent> in August, up from <percent>101.5%</percent> in July 2024 and <percent>5%</percent> higher than a year ago when the index stood at <percent>97.2%</percent>. (Graphic: Business Wire)

Primerica Household Budget Index™ - Spending power reached its highest level since February 2021 in August 2024. The average purchasing power for middle-income families was 102.2% in August, up from 101.5% in July 2024 and 5% higher than a year ago when the index stood at 97.2%. (Graphic: Business Wire)

“For the first time in a year, a majority of middle-income households are feeling negative about their personal finances. In fact, this latest report represents the highest negative rating we’ve seen since we began fielding the survey exactly four years ago,” said Glenn Williams, CEO of Primerica. “Families continue to list inflation as their No. 1 concern, with the stress it brings spilling over into worry about being able to afford everyday essentials like food or groceries and going to the doctor as well as managing their rising credit card debt.”

In contrast, Primerica’s latest Household Budget Index™ (HBI™) indicates middle-income households experienced an uptick in purchasing power in August 2024 with the index climbing to 102.2%, up from 97.2% a year ago. The latest figure is positive news for middle-income families, signaling a greater ability to afford everyday expenses like food, gas, utilities and health care. However, the deep hole high inflation dug in their finances during the pandemic means they’re simply not feeling the full effect of these gains yet.

“The economy has turned more favorable in recent months, but it will take time for the effects of lower interest rates, declining prices on necessities and rising wages to have a real impact on the bottom lines of middle-income families,” said Amy Crews Cutts, Ph.D., CBE®, economic consultant to Primerica. “The financial challenges these households are grappling with are poised to persist through the end of this year — and likely beyond. It's clear this is a marathon, not a sprint."

Key Findings from Primerica’s Q3 U.S. Middle-Income Financial Security Monitor™ (FSM™)

  • Middle-income Americans’ perceptions of their personal and community financial health continue to decline. A majority of households (55%) now rate their personal financial situation negatively — a 6-point increase from the previous survey. Significant majorities also view the economic health beyond just their own personal finances in a grim light – their community (63% negative, up 5 points), the nation (73% negative, up 1 point), and their ability to save for the future (73% negative, up 5 points).
  • Credit card debt — and concern over it — is rising. More than one-third (35%) of middle-income Americans say their credit card debt has risen in the past three months — a 5-point jump from the previous survey — and less than one-third (31%) are paying off their credit card in full each month. In addition, nearly half (44%) are more worried about their credit card debt than they were a year ago — a 9-point jump from the last survey and the highest level of concern since the question was first introduced in March 2023. Still, more than two-thirds (69%) say they have reduced overall spending in the past couple years.
  • Uncertainty over the country’s economic future is running high. The share of households expecting the American economy to worsen in the next year has dropped significantly, with just 25% holding that view — down 15 points from the previous survey. However, much of the shift is driven by growing uncertainty, as one-third (34%) of respondents — up 15 points — are unsure about the economy’s direction. Still, optimism also ticked up, with 25% now believing the economy will improve over the next year, a 7-point increase.
  • Inflation, paying for food or groceries are stressing families out. Inflation remains the No. 1 concern for middle-income Americans, with over one-third (40%) citing it as a major worry — an 8-point increase since the last survey. Close behind, one-third (33%) now rank paying for food and groceries as their second biggest concern, up 7 points. Moreover, when asked to describe their feelings about their finances, a majority (58%) chose “stressed,” while nearly half (43%) selected “discouraged.”
  • Half of middle-income Americans can’t afford to go to the doctor. When asked to choose what they could afford from a list, only half (51%) said they could cover the cost of a doctor’s visit — a disconcerting figure given that more than a quarter (27%) expressed concern about their health or getting sick, making it the third top worry for these households.

Primerica Financial Security Monitor™ (FSM™) Topline Trends Data

Sept
2024

 

Jun
2024

 

 

Mar
2024

 

 

Dec
2023

 

 

Sept
2023

 

 

Jun
2023

 

 

Mar
2023

 

 

Dec
2022

 

Sept
2022

How would you rate the condition of your personal finances? Share reporting “Excellent” or “Good.”

44%

49%

50%

50%

49%

50%

52%

53%

53%

Analysis: Respondents are increasingly negative in their assessment of their personal finances.

Overall, would you say your income is…?

Share reporting “Falling behind the cost of living”

68%

66%

67%

68%

72%

71%

72%

72%

75%

Share reporting “Stayed about even with the cost of living”

24%

26%

25%

24%

20%

22%

21%

20%

19%

Analysis: Concern about meeting the increased cost of living remained steady with 92% noting an inability to get ahead.

And in the next year, do you think the American economy will be…?

Share reporting “Worse off than it is now”

25%

40%

46%

53%

56%

57%

53%

56%

51%

Share reporting “Uncertain”

34%

19%

18%

9%

9%

9%

7%

8%

8%

Analysis: While fewer respondents think the economy will definitely get worse over the next year, the rising share that are uncertain about its direction accounts for most of the change.

Do you have an emergency fund that would cover an expense of $1,000 or more (for example, if your car broke down or you had a large medical bill)? (Reporting “Yes” responses.)

61%

63%

62%

60%

62%

61%

58%

59%

60%

Analysis: The percentage of Americans who have an emergency fund that would cover an expense of $1,000 or more has remained steady over the past year.

How would you rate the economic health of your community? (Reporting “Not so good” and “Poor” responses.)

63%

58%

60%

57%

55%

54%

59%

53%

55%

Analysis: Respondents’ rating of the economic health of their communities has gotten worse over the past year.

How would you rate your ability to save for the future? (Reporting “Not so good” and “Poor” responses.)

73%

68%

67%

73%

71%

71%

73%

74%

73%

Analysis: A significant majority continue to feel it is difficult to save for the future.

In the past three months, has your credit card debt…? (Reporting “Increased” responses.)

35%

30%

34%

35%

34%

33%

33%

39%

37%

Analysis: Credit card debt has remained about the same over the past year.

About Primerica’s Middle-Income Financial Security Monitor™ (FSM™)

Since September 2020, the Primerica Financial Security Monitor™ has surveyed middle-income households quarterly to gain a clear picture of their financial situation, and it coincides with the release of the monthly HBI™ four times annually. Polling was conducted online from September 10-13, 2024. Using Dynamic Online Sampling, Change Research polled 999 adults nationwide with incomes between $30,000 and $130,000. Post-stratification weights were made on gender, age, race, education and Census region to reflect the population of these adults based on the five-year averages in the 2021 American Community Survey, published by the U.S. Census. The margin of error is 3.4%. For more information visit Primerica.com/public/financial-security-monitor.html.

About the Primerica Household Budget Index™ (HBI™)

The Primerica Household Budget Index™ (HBI™) is constructed monthly on behalf of Primerica by its chief economic consultant Amy Crews Cutts, PhD, CBE®. The index measures the purchasing power of middle-income families with household incomes from $30,000 to $130,000 and is developed using data from the U.S. Bureau of Labor Statistics, the US Bureau of the Census, and the Federal Reserve Bank of Kansas City. The index looks at the cost of necessities including food, gas, utilities, and health care and earned income to track differences in inflation and wage growth.

The HBI™ is presented as a percentage. If the index is above 100%, the purchasing power of middle-income families is stronger than in the baseline period and they may have extra money left over at the end of the month that can be applied to things like entertainment, extra savings, or debt reduction. If it is under 100%, households may have to reduce overall spending to levels below budget, reduce their savings or increase debt to cover expenses. The HBI™ uses January 2019 as its baseline. This point in time reflects a recent “normal” economic time prior to the COVID-19 pandemic.

Periodically, prior HBI™ values may be revised due to revisions in the CPI series and Consumer Expenditure Survey releases by the U.S. Bureau of Labor Statistics (BLS). Beginning with the October 2023 release of the HBI™ data, health insurance costs will no longer be included in the calculation of the HBI™ data as part of the healthcare component because of some newly acknowledged methodology that has been used by the BLS to calculate the health insurance CPI. The health insurance CPI, as calculated by BLS, does not measure consumer costs of health insurance such as the cost of premiums paid or a combination of premiums and deductibles, but rather premium values retained by health insurers we do not believe it accurately reflects consumer experiences. The healthcare component will continue to include medical services, prescription drugs and equipment. Prior published values have been adjusted to reflect this change. For more information visit householdbudgetindex.com.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Public Relations

Gana Ahn, 678-431-9266

gana.ahn@primerica.com

Investor Relations

Nicole Russell, 470-564-6663

nicole.russell@primerica.com

Source: Primerica, Inc.

FAQ

What percentage of middle-income Americans feel negative about their personal finances according to Primerica's Q3 2024 survey?

According to Primerica's Q3 2024 Financial Security Monitor™ survey, 55% of middle-income Americans rate their personal financial situation negatively, which is a 6-point increase from the previous survey.

How has credit card debt changed for middle-income Americans in Q3 2024 based on Primerica's survey (PRI)?

Primerica's Q3 2024 survey shows that 35% of middle-income Americans report their credit card debt has increased in the past three months, which is a 5-point jump from the previous survey.

What is the top financial concern for middle-income Americans in Q3 2024 according to Primerica's survey?

According to Primerica's Q3 2024 Financial Security Monitor™ survey, inflation remains the top concern for middle-income Americans, with 40% citing it as a major worry, an 8-point increase from the previous survey.

What percentage of middle-income Americans can afford a doctor's visit in Q3 2024 based on Primerica's survey (PRI)?

Primerica's Q3 2024 survey reveals that only 51% of middle-income Americans say they could cover the cost of a doctor's visit.

How has Primerica's Household Budget Index™ (HBI™) changed for middle-income households in August 2024?

Primerica's Household Budget Index™ (HBI™) for middle-income households reached 102.2% in August 2024, up from 97.2% a year ago, indicating an uptick in purchasing power.

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