Some are poor.

When I recently got all 4 of my tires replaced I watched the tire techs warn several customers that the tread on their tires was too low and every single one of them said they couldn’t afford new tires right now so rotate them and let them leave.

It’s not just hitting the poor. Like, if it were, you’d only see the poor living paycheck-to-paycheck. But…that’s not actually the situation. The bulk of it is going to be financial literacy, which at least when I went through school was not something covered at all. I think that financial literacy is seriously an area where the US doesn’t do all that well.

https://www.cnbc.com/2023/07/31/61percent-of-americans-live-paycheck-to-paycheck-even-as-inflation-cools.html

The survey found most Americans (58%) are living paycheck to paycheck. Struggling to make ends meet, many are relying on credit cards to cover any shortfalls. Meanwhile, nearly one-quarter of those surveyed said credit card debt also contributed to their financial stress.

Living paycheck to paycheck means consumers need their next paycheck to meet their monthly obligations. How much of a cash cushion they have is hugely important in determining how far consumers are willing to push their paychecks every month — and how stressed out they might be if faced with an unexpected financial shock.

It’s not about being “poor.” And alternatively, not living paycheck to paycheck isn’t about being “rich” — even though most people prefer to define it in those stark terms.

Instead, we find that paycheck-to-paycheck living spans all income levels, including half of high earners (defined as those earning $100,000 or more each year) as of January 2025. Across all income groups, people report similar abilities to pay their monthly bills without a struggle but needing the next paycheck to stay on track. This implies that living paycheck to paycheck isn’t solely about financial hardship or an inability to meet basic needs, but how people choose to manage their monthly income.