Financial Health Pulse^® 2023 U.S. Trends Report

The percentage of Financially Vulnerable Americans returned to pre-pandemic levels.

Figure 1. Percentage of people by financial health tier (2018-23).

Note: * Statistically significant relative to 2023 (p < 0.05).

• • 17% of Americans were Financially Vulnerable in 2023, an increase from 15% in 2022. 
  • The share of Americans who were Financially Healthy or Financially Coping did not meaningfully change over the last year.

Declines were observed across all four pillars of financial health: Spend, Save, Borrow, and Plan.

Figure 2. Percentage point change in positive responses for each financial health indicator (2022-23).

Note: * Statistically significant relative to 2022 (p < 0.05).

• • With about half (49%) of Americans spending less than their incomes, this indicator is the lowest it’s been since we first began reporting on financial health in 2018.
  • Three more indicators retreated to pre-pandemic levels: debt manageability, confidence in achieving long-term financial goals, and agreement that one’s household is planning ahead.
  • Short-term savings also declined relative to 2022, but still remained above pre-pandemic levels.
  • The three remaining indicators did not change from their 2022 levels.

Black and Latinx Americans disproportionately experienced an increase in financial vulnerability.

Figure 3. Percentage-point difference in share of Financially Vulnerable among racial and ethnic groups.

Note: * Statistically significant relative to 2022 (p < 0.05).

• • Between 2022 and 2023, the share of Black and Latinx Americans who were Financially Vulnerable increased by 6 and 7 percentage points, respectively, while there was no meaningful increase in the share of Financially Vulnerable Asian, White, or Multiracial people. 
  • Financial health gaps between Black and White Americans and between Latinx and White Americans grew over the past year.
  • Black and Latinx Americans experienced growing challenges around borrowing and financial planning.

Younger Americans disproportionately experienced an increase in financial vulnerability.

Figure 4. Percentage-point difference in share of Financially Vulnerable among age groups.

Note: * Statistically significant relative to 2022 (p < 0.05).

• • Increases in the share of Financially Vulnerable Americans were concentrated among people between the ages of 18 and 35.
  • Financial health gaps between the youngest and oldest Americans widened over the past year.
  • Americans aged 65 and older face distinct financial challenges around savings, with 44% reporting a lack of confidence in reaching their long-term financial goals and 24% reporting that they did not have enough savings to cover three months of expenses.

This year’s report examines financial health by geographic region, household composition, and more.

Table 1. An increasing share of those living in southern states were Financially Vulnerable.
Percentage of people categorized by geographic region and financial health tier.

Note: * Statistically significant relative to 2022 (p < 0.05).

• • One out of 5 (20%) Americans living in Southern states were Financially Vulnerable, a higher share than in any other region of the United States.
  • Single women were more often Financially Vulnerable than single men or those who were married or partnered.
  • In 2023, those born in the U.S. were more often Financially Vulnerable than those born outside of the U.S., though the considerable variation in the lived experiences of immigrants requires deeper exploration.

Large financial health gaps are tied to key financial characteristics.

Table 2. Unbanked and underbanked people were more frequently Financially Vulnerable.
Percentage of people categorized by banking status and financial health tier.

Note: * Statistically significant relative to 2022 (p < 0.05). NA reflects cells where the number of respondents was too small to report on with confidence.

• • Despite recent declines in the share of unbanked households, our findings highlight how critically important it is to continue focusing on those without access to bank accounts. Nearly half (47%) of unbanked Americans were Financially Vulnerable, four times the share of those with a bank account (11%).
  • Our new measure of net worth shows that almost half (48%) of those who reported being in debt were Financially Vulnerable, compared with just 6% of those who reported having positive net worth – a staggering 800% difference. 
  • This pattern was mirrored in two key drivers of wealth generation – homeownership and entrepreneurship. Three out of 10 (30%) renters were Financially Vulnerable in 2023, compared with just 9% of homeowners. Similarly, just 8% of entrepreneurs were Financially Vulnerable, compared with 15% of Americans who were not business owners.

Financial health varies depending on consumer experiences in the labor market.

Table 3. Unemployed people were more frequently Financially Vulnerable.
Percentage of people categorized by employment status and financial health tier (2023).

Note: * Statistically significant relative to those who were unemployed (p < 0.05).

• • Two out of 5 (40%) unemployed Americans were Financially Vulnerable, compared with 14% of those who were employed and 15% of those who were not in the labor force.
  • Those working at smaller businesses were more frequently Financially Vulnerable than those working for larger businesses. Workers at businesses with fewer than 100 employees were Financially Vulnerable twice as often as those working at businesses with 500 or more employees (18% versus 9%, respectively).

Financial health and health status are closely linked.

Table 4. Financial health decreases as self-rated mental and overall health declines.

Note: * Statistically significant relative to “excellent” or “very good” self-rated health (p < 0.05).

• • Those who reported that their overall health was fair or poor were Financially Vulnerable six times more often than those with good or excellent overall health. There was a similar pattern between financial health and mental health.
  • People with disabilities were more often Financially Vulnerable than those without disabilities. Explore our recent report on the financial health of people with disabilities to learn more about the challenges this diverse community faces and how stakeholders across sectors can better support them.