Banking and Finance Law Daily Wrap Up, FEDERAL RESERVE SYSTEM—Fed reports on results of 2024 consumer economic well-being survey, (May 29, 2025)
The report indicates that inflation and prices continued to be the top financial concern, while the labor market remained solid.
The Federal Reserve Board has issued its latest report on consumer well-being, Economic Well-Being of U.S. Households in 2024. The Report examines the financial circumstances of U.S. adults and their families. Overall, the report shows that financial well-being was similar to the previous two years as concerns about prices persisted and labor market conditions remained solid. “The financial well-being of American households and businesses is essential to our nation's overall economic vitality,” said Fed Governor Michael S. Barr. “It is critical for the Federal Reserve to understand the challenges households and businesses face as we work to promote a healthy economy and strong financial system.” The report is based on the results of a survey conducted that included a wide range of topics such as income, savings, debt, and access to credit.
The report draws from the Board's annual Survey of Household Economics and Decisionmaking (SHED), which was fielded in October 2024. It analyzes a wide variety of topics including financial well-being, handling expenses, employment, and gig work. According to the report, inflation and prices continued to be the top financial concern, while the labor market remained solid. A majority of households reported an improvement in their financial situation compared to previous years. This improvement was attributed to factors such as increased wages, lower unemployment rates, and a strong stock market. Additionally, a significant number of households were able to save more money and pay off debts, leading to a more stable financial future.
The survey also found that a larger percentage of households reported an increase in their income compared to the previous year, leading to an increased amount of disposable income. Compared to previous years, the report indicated that a majority of households were able to set aside money for emergencies or future expenses. Areas of concern include the rising levels of student loan debt and the lack of access to affordable housing for many households.
This year finds that 73 percent of adults reported either doing okay or living comfortably financially, similar to recent years but lower than a high of 78 percent in 2021. The share who would cover a $400 emergency expense using cash or its equivalent was also nearly unchanged from recent years at 63 percent.
Employment and gig work. Thirteen percent of adults made money by selling things in the gig or resale sectors, and 9 percent made money by doing short-term tasks such as giving rides, delivering takeout, or doing odd jobs. Fifty-five percent of people who did gig work agreed that it gave them flexibility, but 35 percent said it gave them work-life balance.
Job quality. Fourteen percent of adults started a new job and 9 percent quit a job in 2024. Both were similar to 2023 but down from peaks of 15 percent and 11 percent in 2022. Among workers who changed jobs in 2024, 62 percent said that the new job was better than their previous one, down from 67 percent of job changers who said their new job was better in 2023 and 72 percent in 2022. Workers with more education continued to have more autonomy regarding the work they did and where they did it. Sixty percent of those with a bachelor’s degree worked from home at least some of the time, compared with 18 percent of those with a high school degree or less. Seventeen percent of employees worked a schedule that varied based on their employer’s needs.
Financial fraud. The report also highlights the risk of financial fraud facing consumers. Twenty-one percent of adults experienced financial fraud in 2024, with credit card fraud as the most common type.
Credit issues. Use of buy now, pay later (BNPL) edged up 1 percentage point to 15 percent, while the share of BNPL users paying late increased sharply. Nearly one-fourth were late making a payment, compared with 18 percent in the prior year. Twenty-one percent of adults reported experiencing financial fraud or scams involving their money, with 17 percent reporting fraud related to their credit card and 8 percent reporting another type of financial fraud. Consumers lost $84 billion from non-credit-card fraud before any funds were recovered and $63 billion after recovery, according to the report.
Housing. The survey indicated that rental prices continue to rise, with the median rent $1,200 in 2024, up about 10 percent each year since 2022. Seven percent of homeowners did not have homeowners insurance, most often because of cost. The main reason homeowners do not have homeowners insurance, is not being able to afford the cost, with almost 20 percent of uninsured homeowners stating that it’s not worth the cost.
Childcare. Parents were almost twice as likely to use unpaid childcare as they were to pay for childcare. Forty-six percent of parents of children under age 13 used some form of unpaid childcare from someone other than the child’s parent, while 24 percent used paid childcare. Just over half of parents who used paid childcare spent at least 50 percent as much on childcare as on housing, most people’s single largest monthly expense.
Student loans. Fewer young adults under age 30 have borrowed for their education than those ages 30 to 44. Three in ten borrowers with loans outstanding who completed some college, a technical degree, or an associate degree reported being behind on student loan payments, compared with 11 percent of borrowers with a bachelor’s degree.
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