Parents, particularly those with children under 18, experienced the most significant financial strain in 2023
In a recent report, the Federal Reserve Board revealed that Americans are facing financial challenges despite inflation cooling down to 3.4% in 2023. The Economic Well-Being of U.S. Households in 2023 report showed that parents, particularly those with children under 18 years old, experienced the most significant financial strain.
According to the survey, only 64% of parents reported feeling financially okay in 2023 compared to 69% in the previous year. This is the lowest rate since data collection began in 2015. Overall, about 72% of adults reported doing at least OK financially or living comfortably, which was down from 78% in 2021.
The report also highlighted that renting has become a significant challenge for many Americans. Nineteen percent of renters reported being behind on their rent at some point during the year, up two percentage points from the previous year. This trend is concerning as it indicates that more and more people are struggling to keep up with their housing expenses.
Inflation continues to impact American households in various ways. According to a survey by the University of Michigan, consumer sentiment is at a six-month low due to inflation concerns. Americans are feeling pessimistic about the economy, which could have implications for President Joe Biden's reelection bid.
Dr. Sung W. Sohn from Loyola Marymount University's College of Business Administration noted that the Federal Reserve's survey results suggest that
Parents with kids under 18 felt financially OK at the lowest rate since data collection began in 2015, with only 64% reporting so in 2023.
Overall, the share of US households reporting financial health as OK fell to the lowest since 2016, at 72%.
Accuracy
35% of adults identified price hikes as their main source of financial worry, up from 33% in the previous year.
Nearly one in five adults (19%) fell behind on rent at some point in 2023, up from 17% the previous year.
The median monthly rent rose significantly faster than the consumer price index, increasing by 10% to $1,100.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several instances of appeals to authority and inflammatory rhetoric. The author quotes Dr. Sung W. Sohn multiple times to support the idea that inflation is causing financial hardship for Americans, particularly parents. While these quotes add credibility to the article's claims, they also constitute an appeal to authority fallacy as the author relies on Sohn's expertise rather than providing evidence or logical reasoning of their own. Additionally, phrases like 'possible blow to President Joe Biden's reelection bid,' and 'stubborn inflation is to blame,' contain inflammatory rhetoric that can sway readers emotionally without providing any substantive evidence. The score is 85 because while there are fallacies present, they do not significantly detract from the overall accuracy of the article.
Parents are feeling the worst about their finances in nearly a decade – and experts say stubborn inflation is to blame.
If you look at consumer confidence, it’s been trending down significantly.
The figure ticked down from 73% in 2022 and 78% when Biden took office in 2021.
The Federal Reserve's 2023 survey on household financial well-being found Americans struggling with prices despite inflation cooling to 3.4%.
96% of people making less than $25,000 reported that their situations had been made worse by price changes.
19% of renters reported being behind on their rent at some point in the year, up 2 percentage points from 2022.
Accuracy
65% of adults reported that price changes had made their financial situation worse.
19% of renters reported being behind on their rent at some point in the year.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(75%)
The article contains some inflammatory rhetoric and appeals to authority. It also presents a dichotomous depiction of the U.S. economy by highlighting both positive job market and wage growth prospects while simultaneously emphasizing financial stress due to inflation and rent costs.
. . . many remained glum about inflation even as price increases slowed.
Inflation cooled notably over the course of 2023, falling to 3.4 percent at the end of the year from 6.5 percent going into the year. Yet 65 percent of adults said that price changes had made their financial situation worse.
Renters also reported increasing challenges in keeping up with their bills.
The report showed that 19 percent of renters reported being behind on their rent at some point in the year, up two percentage points from 2022.
Childcare was reported as a significant cost in family budgets, with parents using paid childcare typically spending 50 to 70 percent as much per month on it as they did on their housing payment
Accuracy
Financial well-being was nearly unchanged from 2022
72% of adults reported doing okay or living comfortably financially
65% of adults said price changes made their financial situation worse
Low-income adults were more likely to face material hardships than others
