Middle-income families are experiencing a tough economic reality as they deal with the lingering effects of inflation from recent years. A new report from Primerica highlights how this situation has led many to feel more negative about their financial future.
As of the third quarter of 2025, only 21% of middle-income individuals believe they’ll be in a better financial position within the next year. In contrast, 34% worry they will be worse off, and another 33% think their situation will remain unchanged. These numbers reflect a stark contrast to just five years ago, when a more optimistic 33% believed they would improve financially, while only 17% feared a decline.
Primerica noted, “The inflation hangover doesn’t just impact daily budgets; it erodes the financial stability that families work hard to create.” With everyday expenses rising, many families are forced to make difficult choices, such as dipping into savings, accruing credit card debt, or putting off investments in their futures.
The report also indicated that the percentage of middle-income households rating their finances as “poor” or “not so good” has jumped from 32% in early 2021 to around 55% a year later. Moreover, fewer families are able to pay off their credit card balances in full each month—a drop from 47% in early 2021 to just 29% currently.
Rising costs for essentials such as food and gas have outpaced wage growth significantly. Since January 2021, necessary expenses have soared by 32.7%, while wages have only seen a 23.5% increase. As families grapple with these financial challenges, many have resorted to delaying major purchases or turning to savings to make ends meet.
In a survey, 55% of respondents cited inflation as a major source of financial stress, while 47% worried about covering unexpected expenses. Debt and the struggle to afford daily needs were also significant concerns, with nearly half of the respondents stressing over these issues.
As middle-income families continue to face these hurdles, it becomes clearer that the economic environment requires urgent attention. The ongoing financial struggles represent not just a momentary setback, but a challenge that could have long-lasting effects on the economic well-being of many Americans.
