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Rising living costs are Americans' biggest barrier to a better life, survey finds

Created at 6 Aug · 11:11 AM1 source↑ Market-relevant
IN SHORT

A survey of over 30,000 Americans revealed that the rising cost of living is the primary obstacle to achieving a better life, with 60% desiring greater financial security. Groceries, housing, transportation, and healthcare were cited as major concerns.

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Key Numbers

30,000+adults surveyed
60%want greater financial security
40%feel financially vulnerable or struggling
90%listed groceries as top cost concern
30%found government institutions helpful
2xmore likely to feel in control if connected to community
4xmore likely to feel life had momentum if connected to community

Who's Involved

McKinsey Institute for Economic Mobility
Conducted survey on American economic mobility and challenges
WK Kellogg Foundation
Co-conducted survey on American economic mobility and challenges
JP Julien
Partner at McKinsey involved in the research

↳ Why This Matters

The survey underscores the widespread economic anxiety among Americans, revealing that despite positive macroeconomic indicators, many individuals struggle with basic affordability. This disconnect highlights the tangible impact of inflation on daily life and the perceived inadequacy of institutional support, emphasizing the importance of community and personal financial security.

Key facts

  • A survey of over 30,000 Americans found that the rising cost of living is the primary obstacle to achieving a better life.
  • Sixty percent of respondents desire greater financial security, often defined as the ability to afford necessities and save for the future.
  • Forty percent of Americans described themselves as financially vulnerable or struggling to meet basic needs.
  • Groceries were identified as the top cost-of-living concern by 90% of survey participants.
  • A majority of respondents believe government is responsible for helping people get ahead, though only 30% found government institutions helpful.
  • Friends and family were ranked as the most helpful group in assisting people to get ahead.

A survey of over 30,000 adults across the United States indicates that the rising cost of living is the most significant barrier preventing Americans from achieving a better life. Conducted by the McKinsey Institute for Economic Mobility and the WK Kellogg Foundation in mid-April, the survey found that 60% of respondents desire greater financial security, which they often define as the ability to afford basic necessities without worry and save for the future.

Many Americans feel this goal is out of reach, with 40% describing themselves as either financially vulnerable or struggling to meet basic needs. The escalating costs of groceries, housing, transportation, and healthcare are primary concerns. Specifically, 90% of respondents identified grocery and food costs as their top cost-of-living worry.

While Americans largely agree on affordability as a key challenge, their specific needs vary. Rural respondents emphasized the need for better jobs and career paths, whereas urban respondents prioritized affordable housing and improved safety. The survey also highlighted a significant gap in perceived support: a majority (60%) believe government should help people get ahead, but only 30% found government institutions to be helpful. In contrast, friends and family were ranked as the most supportive group, followed by employers.

The research also found that strong community connectedness is a key indicator of a positive outlook. Respondents who felt strongly connected to their communities were more than twice as likely to feel in control of their lives and nearly four times as likely to report their lives had momentum. However, only one-third of respondents reported experiencing this strong sense of community.

Frequently asked questions

The main finding is that the rising cost of living is the biggest barrier for most Americans in achieving a better life.

Groceries and food costs are the top concern for 90% of respondents, followed by housing, transportation, and healthcare.

A majority believe government is responsible, but friends and family are perceived as the most helpful group.

Respondents with strong community connections were more likely to feel in control of their lives and have a sense of momentum.

What Happens Next

01Further analysis of survey data may reveal more specific regional and demographic differences in economic concerns.

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How It Developed

A survey of over 30,000 adults found that the rising cost of living is the biggest barrier to a better life for most Americans.
Sixty percent of respondents want greater financial security, often defined as affording necessities and saving for the future.
Forty percent of respondents feel financially vulnerable or are struggling to meet basic needs.
Groceries were listed as the top cost-of-living concern by 90% of respondents, followed by housing, transportation, and healthcare.
Respondents largely agreed on affordability as a key barrier but differed on specific needs, with rural respondents wanting better jobs and urban respondents seeking affordable housing and safety.
A majority (60%) believe government is responsible for helping people get ahead, but only 30% found government institutions helpful.
Friends and family were ranked as the most helpful group, followed by employers.
Strong community connectedness was linked to a greater sense of control and future momentum.

Sources

T1
Most Americans view rising living costs as biggest barrier to a better life, survey findsThe Guardian

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