Rising gas prices due to the Iran conflict and high housing costs are eating away at incomes. Inflation rose over 20% during the Biden administration and eroded the quality of life for so many Americans for over 4 years. Today, many working-class and middle-class households are under financial pressure.

A new survey of over 5,000 Americans and Canadians provides eye-opening insights into the demographics that are stressed and those who are fulfilled.

You might be surprised that age and wealth don’t guarantee fulfillment; a decent number of younger Americans with modest means are just as fulfilled as those with much more at their disposal.
The data

Financial fulfillment is defined as the state where people’s personal finances support the life they want to have. Conversely, financial stress is characterized by straining to meet obligations, needing to make trade-offs between financial and life goals, and feeling they lack control over their financial situation. 

In the inaugural Edward Jones and Gallup Money and Meaning: Understanding Financial Fulfillment study, researchers found that:

  • 16% of U.S. adults are financially fulfilled. 
  • 32% of U.S. adults experience consistent financial stress. 
  • 51% of U.S. adults are financially conflicted or experience some progress but still contend with ongoing financial strain.

Hard data suggests that the American consumer is resilient despite the headwinds of high gas prices. Consumer spending rose a robust 0.4% in April due to inflation. Consumers power the U.S. economy, and their spending keeps us growing. Thankfully, big tax refunds have helped cushion the financial bite from higher gas prices, but those refunds will only last so long.

Beyond day-to-day expenses, financial fulfillment speaks to the quality of life now and economic mobility in the future—the ability to provide the life you want and the future you desire for your children.

As Gallup explained, Americans define financial fulfillment as the freedom to pursue passions, mobility, and security or protection from unforeseen events. Experiences play a great role in this, as do relationships and meaningful activities. Think of summer vacations or holiday trips to visit grandparents as well as bridesmaid weekends away or tickets to sporting events. Unfortunately, these discretionary experiences are the first to be eliminated when a household budget is stretched. 

Demographics of the financially fulfilled

As might be expected, financial fulfillment is correlated with income and age. Married individuals are also more likely to be financially fulfilled. Income, age, and marriage allow Americans to accumulate earnings, savings, and wealth—something we should be promoting in society.

That said, financial fulfillment is not determined solely by income, wealth, and life stage. One in 10 Americans making between $35,000 and $84,999, considered lower-middle income, are financially fulfilled.

Bottom Line

Gas prices are high and, for some households, burdensome. However, Americans are resilient. Gas prices will recede, but the issue of financial fulfillment and freedom looms large. 

Policymakers must have an eye toward making life more affordable and fulfillment more attainable. We’ve got some ideas to start here: www.independentwomen.com/affordability.