Nearly 24% of U.S. households are living paycheck to paycheck in 2025, according to a recent report from the Bank of America Institute. This means almost one in four families spend over 95% of their income on essentials like housing, groceries, gas, child care, and utilities, leaving little room for savings or discretionary spending. The increasing financial strain is affecting millions of Americans, who remain financially vulnerable despite a strong labor market and modest wage growth. The report paints a troubling picture: inflation continues to erode purchasing power, while rising costs of everyday essentials outpace income gains. This leaves families with little opportunity for financial security, and it’s clear that household budgets across income levels are increasingly fragile. As these challenges mount, the big question remains: Will paycheck-to-paycheck living become the new normal for middle-class families, or will economic adjustments provide some relief? The answer will significantly impact not only household finances but also consumer behavior nationwide. Who Is Most Affected? The financial struggles highlighted in the report disproportionately affect Millennials and Gen X households. These groups often face higher living expenses related to housing, child care, and debt repayment, making them particularly vulnerable to inflation. While higher-income households have