70% of millennials struggling financially, can't afford $400 emergency bill

Kristen Walters

Couple looking worried over finances.Prostock-Studio/Getty Images (Canva Pro license.)

With the recent surge in inflation that has caused the price of just about everything to go up, including food prices, housing, gas, and utilities, it's no surprise that many Americans are now facing severe financial struggles.

The results of a new survey put out by LendingClub showed that at least 61% of Americans are now living paycheck to paycheck.

However, millennials seem to be hit the hardest by the current economic challenges. The survey revealed that 71% of people in the 26-41 age group were not only living paycheck to paycheck, but they also were not able to handle a $400 emergency expense.

The survey was conducted back in December 2021. Since then, the average cost of living has increased by $250 to $300 due to inflation, supply chain issues, and surging fuel and natural gas costs. As it stands, that's an additional $3,000 per year just to maintain the same standard of living that you had just a few months ago.

Some economic experts have expressed concerns publically that inflation "could get out of control" quickly if the central bank does not take action to raise interest rates soon. However, many Americans already feel like inflation is out of control because they are having trouble making ends meet each month already.

But the stark reality is that the economic situation in America could get worse. We haven't reached "hyperinflation" yet -- an adverse financial situation where the value of our currency is diminished while costs continue to rise.

Meanwhile, Americans are waiting and watching anxiously as international conflicts loom, supply chain issues continue to cause shortages at the grocery store, and prices of basic necessities continue to rise.

What is your take?

Is your family facing financial hardship because of inflation?

Share your thoughts in the comments.

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