The Federal Reserve’s Survey of Consumer Finances, covering 2022 to 2025, reports that while GDP grew at an annual rate of 2.5%, inflation averaged 3.6%. Despite moderate income growth for many, financial stress is rising among a growing subset of families.
The lowest income quartile of households experienced a net worth decline of over 50%, dropping from $3,800 in 2022 to $1,700. Simultaneously, median wealth for Black families fell by 25%, reversing previous gains and highlighting persistent wealth inequality.
Debt-related stress is intensifying as inflation and interest rates remain elevated. The proportion of families reporting missed loan payments rose from 12% to nearly 20%. Additionally, the share of households utilizing buy now, pay later services grew from 7% to 12%.
Financial pressure is altering consumer behavior, with stressed households increasingly turning to online grocery channels. Research indicates that consumers facing high financial stress were 16% more likely to make their latest grocery purchase online, compared to 10% for those with low stress.
