Is the American dream affordable?

As Americans continue to strive toward traditional milestones—such as living on their own, buying a home and being able to stop working at retirement age—growing concerns about affordability are making reaching those goals more challenging. The following findings from a recent consumer survey reveal how people are navigating inflation and widespread debt and the impact this is having on their ability to reach their goals.

Financial concerns are increasing

American consumers are concerned about:

Personal finances negatively impacting their lives
Up 7 points from March (37%) to April (44%) 2024

Ability to earn a livable wage
Up 9 points since last year

Income and wealth inequality
Up 9 points since last year

Consumers are feeling the impact of inflation

A bar chart that shows 69% of Amnericans say that expenses have outpaced income

A bar chart that shows 61% of people say they are saving less

Americans are coping with higher costs by making trade-offs

61%
Saved less

34%
Spent down savings

28%
Borrowed money that
needs to be paid back

21%
Stopped or reduced investing

16%
Received public assistance

10%
Received money that
won’t be paid back

47% of those surveyed say they can’t afford their next major milestone

Milestones impacted the most by lack of affordability include:

Buying first home

Moving into larger/nicer house

Retirement

Living on own

Key takeaways

Talk to your Bank of America representative about how we can help get the word out about educational opportunities and resources available to help employees make informed decisions about their finances.
Explore the new Employee Engagement and Personalization microsite to learn more about the range of personalized experiences that can help support employees on their individual financial journeys.

Source for all stats: Bank of America Proprietary Market Landscape Insights, April 2024. Surveys conducted among general consumers (clients and prospective clients).