More Americans are living paycheck to paycheck due to spending on essentials like housing and groceries, per Bank of America. Nearly 24% of households live paycheck to paycheck, with lower-income earners seeing a rise. Wages for lower-income earners have lagged since 2025, driving a “K-shaped economy.”

BofA data shows more middle-aged households living paycheck to paycheck, especially millennials and Gen X. Higher-income millennial households have seen faster wage growth compared to lower-income counterparts. A “K-shaped economy” is reflected in consumer spending, with higher-income earners faring better. Consumer staples companies and fast-food chains have warned of pressures on lower-income consumers.

Rents, food prices, and childcare costs are high for lower-income consumers, impacting their financial stability, according to McDonald’s CEO. The bifurcated consumer trend highlights the challenges faced by lower-income households in the current economy.

Read more at Yahoo Finance: Nearly one-third of low-income US households are living paycheck to paycheck