Americans are increasingly living paycheck-to-paycheck, according to a new study from the Bank of America Institute.

The term ‘living paycheck-to-paycheck’ is an expression that refers to individuals or households that regularly spend nearly all of their income, leaving little to nothing left over for savings.

The institute’s analysis found that more than a quarter of Americans (26%) have necessary expenses that chew up more than 95% of their take-home pay, and nearly a third (30%) of households spend upwards of 90% of their income on critical bills like groceries, housing, utilities, gas, insurance and childcare.

The data showed a 10% increase in those living paycheck-to-paycheck in 2024 compared to 2019.

Predictably, lower-income households have been impacted the most, with 35% of those making less than $50,000 annually falling into that category, but every income bracket showed at least 20% have little left over after necessary spending, including those making more than $150,000.

The share of households living paycheck-to-paycheck also grew with every generation from Gen Z to Baby Boomers but dropped some among those born pre-1946.

Generationally, paycheck-to-paycheck proportions rise with age, while geographically some states in the South have the highest share of paycheck-to-paycheck households.

The bank theorized that the factors driving differences in necessity spending could range from households’ life cycle positions, such as having younger or larger families, as well as potentially geographical factors, including housing costs.

Many of these costs are unavoidable (they are by definition necessary) and it is unlikely these households would be able to reduce their spending without making some major changes, for example, to where they live.

One positive is that as overall inflation moderates, some of the spending pressures on paycheck-to-paycheck households could ease.