Trends In Families Economic Well Being St Louis Fed

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Results from the 2024 Survey of Household Economics and Decisionmaking (SHED), which was fielded in October, indicate that people’s financial well-being was similar to the previous two years but below the high reached in... Inflation and prices continued to be the top financial concern. A majority of adults also said that changes in the prices they paid over the prior year had made their finances worse, but the share saying so declined from 2023. In response to higher prices, most people reported taking actions such as adjusting their spending over the prior year. The share who took actions in response to inflation was similar to 2023, but down slightly from 2022. The labor market remained solid.

Similar shares of people both started and voluntarily left jobs in 2024 compared with 2023. However, these measures were below their peaks in 2022. Additionally, a smaller share of people who changed jobs said that their new job was better in 2024 compared with 2023. People also continued to earn money doing gigs, including 13 percent who sold things and 9 percent who did short-term tasks such as giving rides or doing odd jobs. A meaningful share of those performing these types of gig activities said that without them they would have trouble making ends meet, though many said they wished the pay was more consistent. Emergency savings measures were similar to the previous two years, while retirement preparedness improved slightly.

The share of adults who would pay for an unexpected $400 expense with cash or the equivalent was unchanged from 2022 and 2023, and the share who said they had rainy day funds to... Additionally, non-retired adults were slightly more likely to say that their retirement savings plan was on track than in 2023, extending the upward trend from 2022. That said, each of these measures was down from 2021. An official website of the United States Government Official websites use .govA .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPSA lock (LockLocked padlock icon) or https:// means you've safely connected to the .gov website.

Share sensitive information only on official, secure websites. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Review of Monetary Policy Strategy, Tools, and Communications This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. The Great Recession and the unfolding COVID-19 Pandemic Recession—two major disruptions to the economy that occurred just one decade apart—unequivocally confirm the importance of the economy and economic environments for understanding families’ financial stress...

However, recent published literature places too little emphasis on the economy and economic environments and instead focuses on explanations rooted within individuals and families. In this article, we review research on families’ financial stress and well-being published in JFEI between 2010 and 2019, which analyzed data collected during the Great Recession and were subsequently published in the shadow... We discuss the economy and economic environments as gaps in the literature and encourage future research to focus on these explanations of stress and well-being, especially in response to the pandemic recession. Keywords: Financial well-being, Financial stress, Great recession, Capitalism, Economy As one of the most significant macroeconomic events of the last century, the Great Recession that began in 2007 undermined the financial well-being of millions of American families. This widespread economic downturn disrupted families’ financial well-being, defined as being able to “fully meet current and ongoing financial obligations” (Consumer Financial Protection Bureau [CFPB] 2015, p.

18), when banks’ and financial institutions’ predatory and subprime lending precipitated the foreclosure crisis and forced families into borrowing debt (Mian and Sufi 2014; Federal Reserve Bank of New York 2019). The extraordinary rise in subprime mortgage lending precipitated the equally extraordinary rise in default rates: Nearly 4 million homes were foreclosed at the height of the Great Recession (Mian and Sufi 2014). Suggestive of their need to cope with economic hardship, families increased their borrowing in the years after the economic downturn. Total consumer debt rose from approximately $7 trillion in 2003 to $12 trillion in 2008 and $14 trillion in 2019 in inflation-adjusted dollars (Federal Reserve Bank of New York 2019). These effects were experienced more acutely by those who were targeted by banks and financial institutions for subprime lending and that had the fewest financial resources to spare, including Black and Brown families (Faber... 2013), and families headed by women (Baker et al.

2019). The effects of the recession precipitated by the global pandemic in 2020, caused by the rapid spread of the coronavirus COVID-19, will be far more severe than those of the Great Recession. American families never fully recovered from the Great Recession to begin with, as evidenced by continued rising consumer debt and wealth losses (Baker et al. 2019; Federal Reserve Bank of New York 2019; Hamilton and Darity 2017). Without strong and aggressive government intervention, families are likely to be completely financially devastated by the unfolding Pandemic Recession. It will be years and decades before the full, lasting effects of the Pandemic Recession on all aspects of life are understood; however, early reports of families’ lived experiences are already revealing their immediate...

While the lessons that are still being gleaned from the Great Recession can inform current and ongoing responses to the Pandemic Recession, much more extensive and grassroots-focused policy responses will be needed to stabilize... Abstract: Results from the 2023 Survey of Household Economics and Decisionmaking (SHED) indicate that people’s overall financial well-being was nearly unchanged from the previous year but below the high reached in 2021. Despite the moderating pace of inflation, many adults continued to indicate that higher prices were a challenge in managing their finances. The survey, which was fielded in October 2023, showed similar patterns for other measures of financial resiliency as well. Both the share of adults who spent less than their income in the month before the survey and the share who would pay for an unexpected $400 expenses with cash or the equivalent were... Among adults who were not retired, the share who felt that their retirement savings plan was on track rose slightly from 2022, possibly reflecting stock market gains, but remained below the share who felt...

File(s): File format is application/pdf https://www.federalreserve.gov/publications/files/2023-report-economic-well-being-us-households-202405.pdf Provider: Board of Governors of the Federal Reserve System (U.S.) Since 2013, the Federal Reserve Board has conducted the Survey of Household Economics and Decisionmaking (SHED), which measures the economic well-being of U.S. households and identifies potential risks to their finances. The survey includes modules on a range of topics of current relevance to financial well-being including credit access and behaviors, savings, retirement, economic fragility,… During this Connecting Communities webinar, researchers from the Federal Reserve Board of Governors presented the key findings from the 2025 Survey of Household Economics and Decisionmaking (SHED).

Watch or listen on demand. The Federal Reserve Board’s 2024 Survey of Household Economics and Decisionmaking report explores the financial circumstances of adults and families, highlighting stable well-being amid ongoing price concerns and a strong labor market. In this Connecting Communities webinar, researchers from the Federal Reserve Board of Governors shared findings from the survey on trends in financial well-being. Based on the survey results, they answered attendees’ questions about the financial conditions among low- and moderate-income populations. Women encounter specific challenges in retirement planning, including pay and wealth disparities that affect their savings and financial stability.

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