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During 2021, a record percentage of Americans said they had a solid financial situationeven despite inflation that was beginning to appear as a growing obstacle in the pockets of consumers.
According to a Federal Reserve (Fed) survey of home economics and decision-making, 78% of US adults said they they were doing “good” financially or “living comfortably” in the last three months of 2021.
The 2021 survey marked the highest percentage of Americans reporting financial security since the Federal Reserve began conducting the survey in 2013.
The number of Americans who were doing well financially increased from 75% in 2020, where it had been stagnant since 2018.
The number of adults worse off than 12 months ago fell from 24% in 2020 to 21% last year, but remained the same well above 14% who said his financial situation deteriorated in 2019.
The number of adults who said they could pay all of their monthly bills in full also increased from 83% in 2020 to 86% in 2021.
The results provide valuable information about the financial conditions of americans in late fall 2021,” Fed Governor Michelle W. Bowman said in a statement.
He noted that this important perspective helps the Federal Reserve better understand the economic challenges that existed during that pandemic recovery phase.
Although annual inflation hit four-decade highs and consumer confidence has fallen steadily over the past year, the financial health of households has generally improved after the start of the coronavirus pandemic in 2020.
Financial well-being also increased across racial lines last year, with a notable increase in financial stability among Hispanic adults. The number of parents who said they were financially stable also increased 8% from 2020.
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