The Federal Reserve Board has released its Economic Well-Being of U.S. Households in 2024 report, offering insights into the financial conditions of American adults and their families. The report indicates that financial well-being remained consistent with the previous two years amid ongoing concerns about prices and stable labor market conditions.
The findings are based on the Board's annual Survey of Household Economics and Decisionmaking (SHED), conducted in October 2024. It covers a range of topics such as financial well-being, expense management, employment, and gig work.
According to the report, 73 percent of adults reported being financially okay or comfortable, mirroring recent years but below the peak of 78 percent in 2021. Additionally, 63 percent could cover a $400 emergency expense with cash or its equivalent, a figure nearly unchanged from previous years.
Inflation and rising prices remain primary financial concerns for many adults. While most reported that price changes over the past year negatively impacted their finances, this sentiment decreased compared to 2023. In response to higher prices, many adjusted their spending habits.
The survey also highlights a robust labor market. The proportion of individuals starting new jobs in 2024 was similar to that in 2023. However, job changes were less likely to result in better positions; only 62 percent of those who switched jobs found their new roles improved overall compared to higher percentages in prior years.
Federal Reserve Board Governor Michael S. Barr emphasized the importance of understanding these challenges: "The financial well-being of American households and businesses is essential to our nation's overall economic vitality," he stated.
Additionally, the survey revealed significant exposure to financial fraud among consumers. In 2024, 21 percent experienced some form of financial fraud, with credit card fraud being most prevalent. Non-credit card-related fraud affected eight percent of adults, resulting in an estimated $63 billion in unrecovered losses.
Further details including a fact sheet, downloadable data, data visualizations, and a video summary are available for those interested in exploring the report's findings more deeply.