Findings Highlight How Households Living Paycheck to Paycheck Are Expanding Beyond Traditional Income Lines As Financial Pressures Intensify
LOS ANGELES, June 26, 2026 /PRNewswire/ — SoLo Funds, the nation’s leading AI-powered community finance solution, today released The 2026 Cash Poor Report, an annual study examining Americans living paycheck to paycheck and the costs associated with common short-term borrowing options. The report found that 44% of Americans identify as cash-poor, with less than $200 in savings, while nearly two-thirds say their financial situation is worse than expected. The share of cash-poor Americans unable to cover an unexpected expense has increased nearly 17% since the inaugural report in 2023.
The findings also show that financial hardship is increasingly affecting middle-income households. One in five cash-poor Americans now earns more than $75,000 annually, highlighting how rising costs continue to strain families across income levels. Despite growing reliance on short-term borrowing, fintech solutions such as SoLo Funds continue to rank among the most affordable options for accessing emergency capital.
Conducted in partnership with Opinium Research, Morgan State University, The Global Black Economic Forum, The Aspen Institute Financial Security Program, and the Independent Women’s Forum, the study surveyed 2,000 U.S. adults nationwide.
Key Findings:
- Millennials and Gen X account for nearly 60% of cash-poor Americans, with Millennials representing the largest segment (35%).
- For the first time, Gen Z represents a larger share of cash-poor Americans than Baby Boomers, signaling growing financial instability among younger generations.
- Forty-one percent work full-time, yet struggle to build savings, and nearly half rely on a side hustle for additional income.
- More than 70% described the past year as financially stressful, while nearly two-thirds said their financial situation was worse than expected.
- Younger Americans face increasing barriers to financial access, with 38% of Gen Z and 39% of Millennials reporting they have been denied a checking account
The Cost of Borrowing
The report found that borrowing costs often extend beyond APR through late fees, origination fees, subscription charges, and other expenses.
- Subprime Credit Cards: Most widely used and most expensive option, generating $17.4 billion in annual borrowing costs.
- Buy Now, Pay Later (BNPL): Cost consumers $3.1 billion annually.
- Earned Wage Access/Cash Advances: Cost approximately $1.6 billion annually and remain among the more affordable borrowing options.
- Peer-to-Peer Fintech: Generated approximately $925 million in annual borrowing costs, making it the least expensive category examined.
- Friends and Family: Remain the second most common source of emergency funds, used by 37% of cash-poor Americans.
The report concludes that today’s cash-poor population is increasingly diverse, including full-time workers, caregivers, retirees, and households earning above the national median income.
“The profile of financial hardship in America is changing,” said Rodney Williams, Co-Founder and President of SoLo Funds. “The stereotype that living paycheck to paycheck only affects low-income households is increasingly disconnected from reality.”
To download the full report, visit: https://solofunds.com/thecashpoor/
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SOURCE SoLo Funds
