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Economic Challenges Vary by Income

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Economic challenges faced by Americans vary greatly by income, according to a Federal Reserve report released last month.

Those with family income under $40,000 per year more frequently reported facing short-term financial challenges, such as rent, food, gas, utilities and other bills. Those with family income greater than $100,000 per year reported more challenges relating to retirement or education.

Americans in all income groups expressed concerns relating to employment, while health care worries are most common among lower- and middle-income people.

The findings were contained in the Fed’s “Report on the Economic Well-Being of U.S. Households in 2015,” which, using a survey conducted in October and November 2015, examines the overall economic well-being of Americans.

The survey asked an open-ended question about financial challenges faced by the respondents, who were asked either to check a box indicating that they faced no financial challenges or to describe in “a couple of words (150 character max)” to describe the main financial challenges or concerns facing them or their families.

Forty-nine percent of respondents checked the box, while most of the remaining 51 percent of respondents provided some response to the open-ended question.


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