The Financial Health Network 2022 U.S. Trends Report, shows that financial health declined for the first time in the project’s five-year history.
Data from the national Pulse survey, conducted in April and May 2022, shows the number of people considered “Financially Healthy” returned to pre-pandemic levels and that the end of pandemic-era government benefits, coupled with inflation, and stock market volatility shaped people’s financial health.
“… financial health did decline between 2021 and 2022 – just as most pandemic-era government financial supports are ending…. financial market volatility and the highest inflation rate in 40 years has contributed to this “cliff” effect.”
The survey showed that broad swathe of Americans experienced financial health declines, including some groups that historically have had high levels of financial health.
The proportion of people considered financially healthy decreased for the first time in five years of Pulse Research.
Declines in Financial Health were due to expenses outpacing incomes and reductions in savings.
Numerous demographic and socio-economic groups experienced declines in their financial health.
People with low incomes who could find work experienced large improvements in their financial health, while those most affected by inflation experienced declining financial health.
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To access the Financial Health Network’s 2022 US Trends report click HERE.
SOURCE: Financial Health Network