Primerica Online: Middle-Income Households Show Signs of Improvement in Financial Well-being

As we enter 2024, there are indications that middle-income households are starting to feel more financially stable. According to economic consultant Amy Crews Cutts, Ph.D., CBE ®, this improvement can be attributed to the decline in the cost of necessities like gasoline and heating fuel, as well as real, inflation-adjusted income gains.

The Household Budget Index™ (HBI™), released by Primerica, shows that middle-income households have seen a significant increase in their purchasing power, reaching 102.5% in December 2023. This is the highest level since February 2022 and indicates that families are experiencing more breathing room financially.

While the Consumer Price Index (CPI) saw a jump of 3.3% in December, middle-income families saw a much lower increase in the cost of necessities at 1% over last year. Additionally, food and healthcare prices increased by only 0.1% and 0.4%, respectively.

'Combined with a strong increase in earned income, the HBI™ rose to 102.5% and began to give families more breathing room,' said Glenn J.

The Financial Security Monitor™ (FSM™) survey, conducted by Primerica, shows that middle-income Americans are evenly split on their outlook for personal finances, indicating that households are feeling a sense of stability and security.

Overall, these indicators suggest that middle-income households may be experiencing improvements in their financial well-being, which is a positive sign for the future.

Primerica onlin