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Pop Culture

Middle class families share how much money they have in savings and it's eye-opening

"I transfer money each paycheck but always end up needing to transfer it back."

Photo by Karolina Kaboompics/Pexels

Many middle class families are sharing that they have nothing in savings right now.

According to an April 2024 Gallup poll, 54% of Americans identify as part of the middle class, with 39% identifying as "middle class" and 15% identifying as "upper-middle class." That percentage has held fairly steady for years, but for many, what it feels like to be a middle class American has shifted.

Notably, inflation caused by the pandemic has hit middle class families hard, with incomes not keeping up with cost-of-living increases. Housing costs have skyrocketed in many areas of the country, mortgage interest rates have risen to levels not seen since the pre-Obama era and grocery bills have increased significantly. One government study found that cost of living has increased between around $800 and $1,300 a month depending on the state since 2021, putting a squeeze on everyone, including the middle class.

One woman shared that her family is just getting by and asked other people who identify as middle class to "chime in" with what they have in their savings account.

"I swear, every paycheck I am putting money into my savings, but needing to transfer it back within a few days," shared @abbyy..rosee on TikTok. "My registration is due. My husband's registration is due. He needed two new tires, even though they had a warranty. That's $300. My oldest needs braces, he needs a palate expander, that's $120 a month. Not to mention groceries are $200 more a week. Forget about feeding your family great ingredients because who has $500 a week to spend on perfect ingredients to feed your family?"


@abbyy..rosee

somethings gotta give #savings #middleclass #relatable

She explained that her husband makes enough money that they should be able to live comfortably, and that she quit her job because the cost of daycare was more than she was making.

"At some point, something has to give," she said. "What is going on? How do I save money?"

People in the comments chimed in with their savings account totals and it was quite eye-opening. Many people shared that they have $0 saved.

"We make the most money we ever have and have zero savings. We live paycheck to paycheck and every month I don’t know how we get by."

"I think the middle class is 1 personal disaster away from bankruptcy."

"Y’all got savings accounts?!?! 😂"

"I used to freak out if I had under $10k in savings, now I’m happy when I have over $150. 😫"

"We make almost 100,000 a year with no savings!!!! It's always something!!"

"I'm lucky if we have $500-$1K for an emergency. every single time we start saving something happens. the vet, the cars, the kids... something."

"Savings account? I transfer money each paycheck but always end up needing to transfer it back. My husband makes great money too but we are scraping by."

"$803 but we have to pay a $750 deductible this week b/c my Husband hit a deer soooo… back at it 😭 It’s exhausting. Constantly draining it, refilling it, transferring."

Some people shared that they do have some savings, but several said it was because they'd had an inheritance or other chunk of money come their way. Many people shared that their savings has dwindled as increased costs have taken their toll. Some people gave lifestyle advice to save money, but most agreed that just the basics have gotten so expensive it's harder to make ends meet much less put extra into savings.

Thankfully, the inflation issue appears to be waning, but even just plateauing at their current financial reality isn't ideal for many American families. Middle class is supposed to be a comfortable place to be—not rich, but well enough off to feel secure. That's not how many middle class folks feel, though. Most Americans don't have anything close to the amount of money saved that is recommended across the age spectrum, but at least hearing that others are in the same boat is somewhat comforting.

It can be vulnerable to put your financial reality out there, but it's helpful to hear what other people are doing and dealing with so we all feel less alone when we're struggling. Perhaps if people were more open about money, we'd all be able to help one another find ways to improve our financial situations rather than lamenting our empty savings accounts and wondering how to change it.

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Joy

Target lowers prices on thousands of items, including staples, in 'sign of disinflation'

Good news for people's grocery bills.

Photo by Shabaz Usmani on Unsplash

Target is dropping prices.

It's been a weird few years for theU.S. economy as the COVID-19 pandemic threw the entire system into disarray and recovery from it took some unpredicted turns, for better and for worse. One thing we knew would be coming was inflation, and Americans have felt it at the checkout counter. Price increases on basic food staples as well as restaurant prices across the board have been painful reminders that, despite record unemployment and a booming stock market, everyday life has gotten ridiculously expensive.

But there are some signs things may be taking a positive turn, such as Target's announcement that they will be cutting prices on thousands of items, including household essentials, in the coming months. Here's what shoppers can expect:

Target has already reduced prices on approximately 1,500 items and will continue through the summer to drop thousands more. "Consumers will enjoy savings on everyday items such as milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food and more. These price reductions will collectively save consumers millions of dollars this summer," the company shared in a press release.

More specifically, a pound of Good & Gather Unsalted Butter that was $3.99 will be $3.79, Good & Gather 5 oz. Organic Baby Spinach will drop from $3.29 to $2.99, and a 20-ounce package of Thomas' Plain Bagels is going from $4.19 to $3.79. Just in time for summer, Aveeno SPF 50 Sunscreen (3 fl oz) will drop from $13.89 to $13.19.

Savvy Target shoppers know how to get the most bang for their buck on a Target trip by using their Target Circle Card, which gives them an additional 5% off purchases, and the company recently reintroduced Target Circle, its free-to-join membership program that applies deals automatically at checkout and features member-exclusive sales throughout the year like Target Circle Week and Target Circle Bonuses—personalized deals to help members earn rewards and get extra savings.

LinkedIn editor Cate Chapman calls Target's price cuts a "sign of disinflation at work"—a hopeful sign, considering Target isn't the only store to announce price drops . Walmart predicted months ago that a "deflationary environment" would mean lower prices on dry groceries and consumables and they were already seeing lower prices on grocery items such as eggs, apples and deli snacks.

woman smiling in a grocery aisle

People's money should go a little further at the grocery store this summer.

Photo by Arren Mills on Unsplash

Even already-low-priced grocery chain Aldi has announced lower prices on 250 items for the summer of 2024. “We don’t want food prices to hold people back from getting together with friends and family or spending time outdoors this season," Dave Rinaldo, president at Aldi U.S., said in a statement.

And McDonald's, which has seen price increases over 100% over the past decade, announced recently that it is exploring a $5 meal option. It used to be that $5 could easily pay for a full McD's meal, but you can't even get a kids' Happy Meal for that price in 2024.

People have reacted to the news of lower grocery prices with a mix of relief and annoyance at feeling like they were being price gouged. They have a point. In fact, President Biden had taken aim at corporations in November of 2023, saying, “Any corporation that has not brought their prices back down, even as inflation has come down, even as the supply chains have been rebuilt, it’s time to stop the price gouging."

Whatever the reason for the lowered prices, feeling a little ease instead of squeeze at the checkout counter will be a refreshing change from the past few years.

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Education

The amount of money Americans budgeted for food 100 years ago is mind-boggling

If we think our grocery bills are high now, it's nothing compared to what families spent in the early 1900s.

Photo by Karsten Winegeart on Unsplash

Even if we shop at the most expensive stores, we still don't spend as much of our income on food as they did in 1901.

As inflation following the COVID-19 pandemic peaked in the summer of 2022, Americans keenly felt it at the grocery check-out. It seemed as if prices had gone up on everything, and our food budgets took a hit. Even though inflation has eased since then, many of us are still lamenting the amount we're spending on groceries and dining out every month.

A New York Post headline ominously pronounced in February 2024 that "Americans have not spent this much of their incomes on food since the Gulf War," citing a federal statistic that U.S.consumers spent 11.3% of their disposable income on food—a higher percentage than we've seen in the past 30 years.

But as they say, it's all relative. While we balk at spending 11% of our income on food, families in the early 1900s would have been thrilled at spending that little on food.

According to the Bureau of Labor Statistics, Americans spent a whopping 42.5% of their household budgets on food in 1901, nearly four times what we spend now. In real numbers, that means the equivalent of a household with the current median income of almost $75,000/yr spending $2,610 a month on food. And that was the reality for a long time—even a few decades later in the 1930s, people were still spending more than a third of their income on food compared to our 11% today.

And the economy, while different in its nature, wasn't drastically different in terms of numbers at that time. The unemployment rate for Americans in 1901 was 4.0%, approximately the same as March of 2024. The country was between two mild recessions and it would only be two more years before it overtook Britain as the world's wealthiest nation. It's not like there was some huge economic downturn that had caused food prices to soar at that time. Food just cost a whole lot more relative to people's income back then.

Okay, so food budgets were high relative to income back then, but what about housing? Surely, people spent far less of their money on housing at that time, right?

Less, yes, but not by as much as we might assume. In 1901, housing made up 23.3% of the average household budget, while in 2022 it was 33%. Definitely an increase, but not as drastic as the decrease in our food budgets. (Caveat: Those percentages don't speak to everyone's individual situation—some Americans are spending upwards of 50% of their income on rent and utilities.) Our clothing expenditures have also gone down by a lot since 1901, from 14% of income to less than 3%.

So where is all of our money going to make our budgets feel squeezed? One spending category that's not even included in the 1901 statistics, which makes up double digit percentages of our spending today, is transportation. In 1901, the automobile industry was in its infancy, still a couple decades away from its first big boom that made cars commonplace. Now we have cars, buses, subways, air travel—and the fuel for all of those things—that people in 1901 simply didn't have to consider.

We also have technology like computers and smartphones now that have become more necessity than nice-to-have. And along with that, of course, we have copious entertainment extras that most of us can't imagine living without.

Another expenditure that doesn't show up in 1901 is healthcare, which takes up 8% of our budgets now. Did people simply not have healthcare expenses back then?

Basically, no, they didn't. According NPR, Americans spent around $5 a year ($100 in today's dollars) on medical care in 1900, primarily because there wasn't a whole lot of medical care to be had. We forget how far our advancements in medicine came in the 20th century, and that those advancements have a cost. Throw in the health insurance industry evolving in the middle of the 1900s, and now medical costs make up a decent chunk of our budgets.

It's fascinating to take a step back and look at the big picture of history when we find ourselves complaining about the price of a banana or a bag of rice. It's not that we can't or shouldn't feel frustrated when our cost of living increases, but when it comes to food budgets, we're living in pretty flush times, relatively speaking. Especially when we consider how much more access we have to different kinds of foods than ever before.

Fluctuations in retail prices have always occurred, of course, due to wars, recessions, etc., and some items have become more expensive while others have gotten cheaper, relatively speaking. But regardless of individual prices, if we find ourselves lamenting our curren grocery bill, it might help to remember how much more of the average budget food used to be. Even if grocery prices were to rise more, we still won't be anywhere near the percentage of our paychecks that food used to take up, and that's certainly something to be grateful for.

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Pop Culture

Woman goes up to strangers on the street and asks how much money they make in their jobs

It's all in the name of salary transparency, and some of these people's salaries are mind-blowing.

Salary Transparent Street/TikTok (used with permission)

From teachers to software engineers to dog groomers and more, here's what people say they make.

Asking someone how much money they make is taboo, at least in American culture. Unless someone's salary is posted publicly, most of us don't even know how much our own coworkers or bosses make, much less complete strangers.

Google isn't a whole lot of help on this front, as compensation in specific jobs can vary wildly depending on the market, someone's education level, years of experience and other factors. So if we're curious about how much someone around us makes in their job, we're often just left to wonder and guess. We're not going to ask out of common courtesy, and most people aren't likely to volunteer the information unprompted because that's also seen as uncouth.

None of that awkwardness around money questions has stopped Hannah Williams, creator of Salary Transparent Street, though. The company's popular social media videos have garnered millions of views and likes with a simple premise: asking people on the street what they do for a living and how much they make.

And interestingly enough, people seem perfectly happy to share.

Some jobs, such as software engineer, have expectedly high wages, though even those varied quite a bit (which could be based on location, but apparently not based on experience, according to this video):

@salarytransparentstreet

How much do Software Engineers make? #salarytransparentstreet compilation! #salarytransparency #paytransparency #softwaredeveloper #softwareengineer #softwareengineering

But other high paying jobs may not be as well known. For instance, a certified anesthesiology assistant shared that she makes over $200,000 a year.

Williams interviewed people in trades jobs, and that was quite eye-opening. (Did you know tattoo artists and hairdressers can make well over six figures? Perhaps they are outliers, but even if they are, holy moly.)

@salarytransparentstreet

Want to get into a trade? Learn how at the link in our bio! 🛠️💄⛑️ Trade jobs are some of the most in-demand, secure, and high-paying jobs out there. #indeedpartner #salarytransparentstreet #salarytransparency #paytransparency #tradejobs #tradejob #tradejobpay #tradejobopportunities

Again, these are specific people's situations, and people in the same job can make a wide range of wages, but one thing Salary Transparent Street does is help people know what's possible with real-life examples.

How about something like a teacher? There's a wide range there, too. But considering the above, it's mostly not amazing. Watch:

@salarytransparentstreet

One year ago! How much do #Teachers make? #salarycompilation #salarytransparentstreet #salarytransparency #paytransparency #teacherpay #onthisday

Salary Transparent Street has grown beyond just on-the-street interviews to include career path assistance, a salary negotiation guide, salary database and more, which you can find on their website.

If you want to see a whole lot more salary interviews with travel nurses, data analysts, UPS driver and more, check out Salary Transparent Street on TikTok and Instagram.

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