It’s not just low-income families that are navigating life from paycheck to paycheck.

An increasing number of middle-class and even higher-income households are spending nearly all their earnings on necessary expenses, leaving little to no funds for luxuries or savings, as reported by Paul Davidson. (Interesting: this seems to resonate with many journalists we’ve known.)

This trend may impact consumer spending, which constitutes 70% of the economy.

Here’s what is driving the financial struggles for many families.

Caregivers Are Facing Financial Challenges

At the age of 29, Jacquelyn Revere received urgent news from a family friend while she was on her way to a comedy show in New York City. She needed to return to Los Angeles immediately due to a family crisis involving her mother.

Revere quickly took a three-week leave from her job and flew back to California. For the next six years, she dedicated herself to caring for her mother and grandmother, both suffering from dementia.

The financial burden of caregiving does not only impact older generations but also affects younger family members who are providing the care, as noted by Medora Lee.

College Costs Are Decreasing

While tuition is only one aspect of college expenses, which can include more costly room and board, the total cost of attending public colleges is actually declining when adjusted for inflation.

When adjusting for inflation, in-state tuition and fees at four-year public colleges have seen an impressive reduction of 40% over the past decade, from $4,140 in 2014-15 to an estimated $2,480 in 2024-25, according to a new report from the College Board.

Additionally, other college-related costs are also declining.

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The Daily Money offers insightful consumer and financial news from YSL News every weekday, simplifying complex situations, summarizing key points, and explaining how major developments like Fed interest rate adjustments or bankruptcy trends affect you directly.