More Working People Feel Good About Their Finances

While the price of chicken eggs is still inducing rage, Americans are feeling more confident about their nest eggs. 

The number of US employees who rate their financial wellness as good or excellent is on the uptick, according to a new report from Bank of America.

A Little Bit Better

Judging how consumers feel can often involve playing the game of “see what they do, not what they say.” The University of Michigan consumer-confidence survey, for example, fell to a six-month low in April as respondents expressed concerns about inflation, unemployment, and interest rates. 

But consumers also continue to spend, with retail sales remaining healthy amid wage growth that has outpaced inflation for some time. Now, it seems, some people’s opinions are catching up with their pocketbooks: 

• The percentage of US employees who think their financial well-being is good or excellent rose to 47% in the first quarter, up from 42% a year prior, BofA data shows. Additionally, the number of employees concerned that economic uncertainty will affect their retirement and benefits dropped to 53%, down from 63%.
• Debt assistance is also emerging as a new tool to help employers attract and maintain workers. Half of employers make matching contributions to 401(k) plans, and of those, 37% offer student loan repayment assistance. That’s a big lure as 1 in 4 Americans has student debt, which has collectively ballooned to $1.7 trillion. 

Wage Gap: Despite some good news, an economic gender gap remains as 53% of men reported good or excellent financial wellness compared to just 36% of women. And no doubt a gender gap in earnings has a lot to do with that. The Bureau of Labor Statistics said women’s median weekly earnings were roughly 84% of what men made in 2023. But perhaps that’ll improve: BofA also found that 70% of women feel confident about their career outlook compared to 64% of men.