39% of Americans are worried they can't pay their bills, which is higher than during the Global Financial Crisis when it was 37%

According to a recent CNN poll, nearly 40% of U.S. adults are concerned that their family’s income may not be sufficient to cover expenses. This figure has risen from 28% in December 2021 and mirrors the levels observed during the Great Recession (37%).

To manage their finances, many Americans are turning to side jobs, reducing their driving, and increasing their reliance on credit cards. The poll shows even higher levels of worry among Latino (52%) and Black (46%) Americans about making ends meet. Additionally, more than half (55%) of those earning less than $50,000 annually share similar concerns.

Despite national data showing low unemployment and easing inflation, millions of Americans continue to struggle with rising prices. “The grocery store is just outrageous right now. But it’s not just that. Everything has gone up. Clothing. My insurance,” said Angela Russell, a program analyst at the CDC from Ohio. Russell, who has two adult children and three grandchildren, recently moved from a rental in Cincinnati to a more affordable rural area.

When asked about the biggest economic issue facing their family, two-thirds of Americans (65%) cited expenses and the cost of living. Although this is down from 75% in the summer of 2022, it remains significantly higher than the 43% who reported similar concerns in the summer of 2021.

Moody’s Analytics reports that the average household is now spending $925 more each month to buy the same goods and services as three years ago. “The pressure is real. Everything is so much more expensive than it was four years ago. It’s astronomical what you’re paying,” Russell noted.

Although inflation has eased—consumer prices rose by 3% year-over-year in July compared to 9% in June 2022—many Americans still feel the pinch. Prices are higher than last year, just rising at a slower rate, and people are still catching up from the sharp increases of 2022 and 2023.

Greg McBride, chief financial analyst at Bankrate, commented, “We can talk all day about how inflation is moderating, but the cumulative impact of several years of inflation has significantly affected household budgets. While the overall view may suggest low unemployment and economic growth, the reality is that moderating inflation means prices aren’t increasing as quickly, but they aren’t decreasing.”

On a positive note, wages have been growing faster than prices recently, reversing a previous trend. Median household incomes have increased by $1,110 over the past three years, surpassing the $925 rise in spending for the same goods and services.