Changing economic conditions are making it more difficult for people to afford household expenses. Our team of analysts found that the number of people who said they were having a “very difficult” time paying for their usual household expenses has increased by 85% since June.

Key findings:

  • 60% of people say they are having some difficulty meeting their usual household expenses
  • 15% of people say they are having a “very difficult” time paying household expenses.
  • The number of people having a “very difficult” time has increased by 85% nationwide and by as much as 201% in some states.
  • Louisiana, Florida and Georgia have the highest numbers of people having a “very difficult” time.

Inflation is the main reason why people are having a harder time meeting expenses. Overall inflation is up 8.3% since last year, but prices for food and fuel have gone up even more. The rise in prices has hit certain states particularly hard.

We looked at the number of people in each state who said they were having either “no difficulty,” “slight to moderate difficulty” or a “very difficult” time meeting their usual household expenses. Rhode Island is the only state where money matters have gotten easier over the last year. In the other 49 states, the number of people having a “very difficult” time meeting their usual household expenses has risen by as much as 200%.

Change in difficulty meeting household expenses
State % having a very difficult time - June 2021 % having a very difficult time - May 2022 % change since June
Alabama 11% 17% 55%
Alaska 11% 14% 27%
Arizona 8% 13% 61%
Arkansas 5% 15% 201%
California 9% 15% 63%
Colorado 7% 11% 63%
Connecticut 8% 13% 66%
Delaware 10% 12% 19%
Florida 8% 22% 173%
Georgia 11% 20% 83%
Hawaii 9% 12% 32%
Idaho 5% 12% 140%
Illinois 8% 12% 50%
Indiana 5% 13% 169%
Iowa 7% 13% 90%
Kansas 7% 12% 75%
Kentucky 9% 16% 73%
Louisiana 10% 25% 150%
Maine 6% 15% 144%
Maryland 8% 11% 43%
Massachusetts 9% 12% 30%
Michigan 8% 15% 82%
Minnesota 8% 10% 27%
Mississippi 11% 19% 70%
Missouri 6% 16% 170%
Montana 5% 12% 143%
Nebraska 7% 12% 77%
Nevada 9% 17% 92%
New Hampshire 5% 13% 164%
New Jersey 9% 17% 88%
New Mexico 9% 16% 80%
New York 9% 15% 67%
North Carolina 9% 13% 48%
North Dakota 7% 11% 61%
Ohio 6% 13% 113%
Oklahoma 9% 17% 88%
Oregon 5% 11% 129%
Pennsylvania 7% 14% 106%
Rhode Island 14% 13% -10%
South Carolina 6% 12% 94%
South Dakota 7% 14% 99%
Tennessee 7% 17% 136%
Texas 10% 16% 56%
Utah 5% 12% 134%
Vermont 6% 11% 87%
Virginia 6% 12% 107%
Washington 4% 10% 150%
West Virginia 8% 18% 120%
Wisconsin 5% 13% 154%
Wyoming 5% 11% 118%
United States 8% 15% 85%

We also found significant changes in the number of people who reported having “no difficulty” or “slight to moderate difficulty.” Nationwide, there was a 20% decrease in people who reported having “no difficulty” and a 15% increase in people who had “slight to moderate difficulty.”

The table below shows the percentage of people in each state experiencing various levels of difficulty meeting their household expenses. Louisiana and Florida had the highest number of people having a “very difficult” time, Minnesota and Wisconsin had the most people with “no difficulty” and Mississippi had the highest percentage of people experiencing “slight to moderate difficulty” meeting their usual expenses.

Difficulty meeting household expenses by state
State % with no difficulty % with slight to moderate difficulty % having a very difficult time
Alabama 37% 46% 17%
Alaska 45% 41% 14%
Arizona 39% 48% 13%
Arkansas 36% 49% 15%
California 40% 45% 15%
Colorado 47% 41% 11%
Connecticut 45% 42% 13%
Delaware 39% 49% 12%
Florida 33% 45% 22%
Georgia 36% 44% 20%
Hawaii 35% 53% 12%
Idaho 41% 47% 12%
Illinois 39% 49% 12%
Indiana 42% 45% 13%
Iowa 44% 43% 13%
Kansas 44% 44% 12%
Kentucky 35% 49% 16%
Louisiana 33% 42% 25%
Maine 42% 43% 15%
Maryland 43% 46% 11%
Massachusetts 45% 44% 12%
Michigan 44% 42% 15%
Minnesota 48% 42% 10%
Mississippi 27% 55% 19%
Missouri 44% 40% 16%
Montana 44% 44% 12%
Nebraska 37% 51% 12%
Nevada 32% 51% 17%
New Hampshire 44% 43% 13%
New Jersey 42% 41% 17%
New Mexico 35% 48% 16%
New York 39% 46% 15%
North Carolina 41% 45% 13%
North Dakota 39% 50% 11%
Ohio 43% 44% 13%
Oklahoma 32% 52% 17%
Oregon 45% 43% 11%
Pennsylvania 41% 45% 14%
Rhode Island 37% 50% 13%
South Carolina 45% 43% 12%
South Dakota 42% 44% 14%
Tennessee 35% 49% 17%
Texas 40% 44% 16%
Utah 41% 47% 12%
Vermont 46% 43% 11%
Virginia 47% 41% 12%
Washington 46% 44% 10%
West Virginia 29% 53% 18%
Wisconsin 47% 40% 13%
Wyoming 39% 50% 11%
United States 40% 45% 15%
*Percentages are rounded so many not add up to 100%

The data presented above shows just how quickly a change in prices can impact people’s financial situation. Inflation is currently at a 40-year high, and we predict that people’s financial situations will continue to drastically change the higher it goes.

Methodology:

We analyzed state-by-state data from the Household Pulse Survey data on the percentage of individuals who had a “very difficult” time meeting usual household expenses over the seven-day moving average dates of June 3, 2021, compared to May 1, 2022. Also included in the second table are the absolute percentages of people with “no difficulty” and “slight to moderate difficulty” in meeting the usual monthly expenses.

References:

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