Adult Males are Slightly More Likely to Live
with Parents Than Their Female Counterparts
58% of Gen Z Consumers Live with Family Members
SAN
FRANCISCO, July 31, 2023 /PRNewswire/
-- LendingClub Corporation (NYSE: LC), the parent company of
LendingClub Bank, America's leading digital marketplace bank, today
released findings from the 24th edition of the Reality
Check: Paycheck-To-Paycheck research series, conducted in
partnership with PYMNTS. The Household Finances Deep Dive Edition
examines the impact of household composition on consumers' ability
to manage expenses and put aside savings. The series draws on
insights from a survey of 4,602 U.S. consumers conducted from
June 5 to June 16, as well as
analysis of other economic data.
The Paycheck-to-Paycheck Landscape
In June 2023, 61% of U.S. consumers lived paycheck
to paycheck, unchanged from June 2022
— as is the share of those struggling to pay bills (at 21%) — even
though more middle-income consumers cited living paycheck to
paycheck in June 2023 than last year.
Among consumers earning $50,000 to
$100,000, 65% lived paycheck to
paycheck as of June 2023, compared to
60% in June 2022. Meanwhile, the
shares of high-income consumers — those earning more than
$100,000 annually — and low-income
consumers — those earning less than $50,000 annually — living paycheck to paycheck in
June 2023 sit at 45% and 77%,
respectively, relatively unchanged from June
2022.
This stability in the financial situation of U.S. households
indicates that consumers continue to adapt to inflationary
pressures, finding ways to manage their spending and live within
their means.
Household Composition Determines Financial
Lifestyle
Consumers living with only a partner or spouse are
likely to face less financial hardship, while those with dependents
and those living with friends or housemates are more likely to live
paycheck to paycheck.
The research finds that 86% of consumers live with one or more
people, and one-third of paycheck-to-paycheck consumers live in
households of four or more people. Consumers not living
paycheck to paycheck are most likely to reside in two-person
households, at 41%. Meanwhile, 49% of millennials and 55% of bridge
millennials live in households of four or more people, making them
the age groups most likely to reside in the largest households.
There is also a direct correlation among household size, stage
of life and financial lifestyle. As household size increases,
the ratio of income earners to non-earners typically falls,
attributable to households with dependent children. When
looking at the share of paycheck-to-paycheck consumers who live in
a two-member household, the data finds that 54% do so — 7
percentage points below the sample average. Meanwhile, at 66%,
consumers with children under the age of 18 are 12% more likely to
live paycheck to paycheck than those without children, at 59%.
Among consumers living with friends or housemates, 77% live
paycheck to paycheck — the most likely to do so. This suggests that
those sharing expenses with a partner or spouse fare better, that
is until they have children or even parents to support.
"As household size increases, the ratio of income earners to
household members typically falls, creating a higher likelihood of
financial distress," said Alia
Dudum, LendingClub's Money Expert. "The relationship between
household income and household composition explains why many
families tend to struggle financially and why millennials and
bridge millennials, many of whom are in their peak child-rearing
years, tend to remain financially vulnerable."
Economic Considerations Top Reason to Stay in the Family
Household
Economics are the main driver for consumers to
live with family longer, with 43% wanting to save money and 30%
unable to afford housing independently. Besides economic reasons,
consumers remain at home to maintain family ties (24%), for
transitional reasons (23%), and to provide care (22%).
At one-fifth (20%), adult males are slightly more likely to
live with parents than their female counterparts (18%), a
phenomenon that grows significantly among those financially
struggling (26% of males compared to 18% of females). At 58%,
Gen Z is the generation most likely to stay with family members,
with 50% citing economic reasons. Members of Gen Z living with
three or more people — often familial settings — spent 22% of their
income on housing, compared to 30% of those living alone or with a
partner.
That said, consumers living with family members to offset
expenses are not planning extended stays. For example, one-third of
those consumers expect to move out in the coming year, particularly
millennials and bridge millennials.
Financial Transparency Determined by Relationship
Status
Financial transparency within shared households is
paramount to ensure bills are paid and expenses are covered, but
the transparency level depends on who consumers live with. Couples
living together share financial information 87% of the time and
have a joint bank account 76% of the time. Parents are also likely
to discuss finances with the children residing in their household,
with 45% of parents sharing financial information with their
children and 34% granting them access to a shared account. Bill
splitting is the most common financial interaction for consumers
living with friends or housemates, at 74%. Additionally, borrowing
money from other household members is a financial option many use
to make ends meet, with consumers mostly engaging in this practice
with parents or siblings, at 47%, and friends and housemates, at
44%.
Families and couples maintain outstanding credit card balances
that are significantly higher, on average, than those of consumers
who live alone. Consumers with children under the age of 18 average
50% more credit card debt than those who live alone. Families
represent the lion's share of credit card spending, holding average
balances of $6,300 for consumers
living with a partner and $7,200 for
those living with children under 18. Living with a partner or
children also significantly increases a consumer's likelihood of
having an auto loan or mortgage.
"With today's inflationary pressures, sharing household finances
has become not only common but crucial," continued Dudum. "The
increasing complexity of modern lifestyles and the rising cost of
living have necessitated a shift in the way consumers approach
household finances. One person solely bearing the burden of
managing all financial matters has become a minority practice.
Instead, couples, families, and even roommates increasingly jointly
navigate their economic realities, and it's a trend that is here to
stay."
To view the full report, visit:
https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-household-spending-shared-expenses/
Methodology
New Reality Check: The
Paycheck-to-Paycheck Report — The Household Finances Deep Dive
Edition is based on a census-balanced survey of 4,602 U.S.
consumers conducted from June 5 to June
16, as well as analysis of other economic data. The data in
this report is not intended to be a representation of LendingClub's
core member base. The Paycheck-to-Paycheck series expands on
existing data published by government agencies, such as the Federal
Reserve System and the Bureau of Labor Statistics, to provide a
deep look into the core elements of American consumers' financial
wellness: income, savings, debt and spending choices. Our sample
was balanced to match the U.S. adult population in a set of key
demographic variables: 51% of respondents identified as female, 33%
were college-educated and 38% declared incomes of more than
$100,000 per year.
About LendingClub
LendingClub Corporation (NYSE: LC)
is the parent company of LendingClub Bank, National Association,
Member FDIC. LendingClub Bank is the leading digital marketplace
bank in the U.S., where members can access a broad range of
financial products and services designed to help them pay less when
borrowing and earn more when saving. Based on more than 150 billion
cells of data and over $85 billion in
loans, our advanced credit decisioning and machine-learning models
are used across the customer lifecycle to expand seamless access to
credit for our members while generating compelling risk-adjusted
returns for our loan investors. Since 2007, more than 4.7 million
members have joined the Club to help reach their financial goals.
For more information about LendingClub, visit
https://www.lendingclub.com.
Contact:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com
PYMNTS Contact: information@PYMNTS.com
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SOURCE LendingClub Corporation