62% of Financially Improving Households Have a Savings Cushion

A recent PYMNTS report reveals that 62% of households experiencing financial improvement still possess a savings buffer. According to the August 2026 PYMNTS Consumer Expectations Index (PCEI), the overall index decreased by 0.8 points to 54.8, remaining within the 53-to-57 range for eleven consecutive months. Despite this relative stability, more households are reporting financial deterioration than improvement.

Nineteen percent of respondents indicated their financial lifestyle worsened over the past year, while 7.1% stated it improved. Households were 2.7 times more likely to say their financial lifestyle worsened compared to improved over the past 12 months. The report also highlights that the share of households living paycheck to paycheck rose from 18% to 27%, while those not living paycheck to paycheck fell from 38% to 33%.

Among households whose financial lifestyle declined, only 5.2% had enough savings to cover more than three months of expenses, compared to 46% of those whose finances remained steady and 62% of those whose finances improved. The report further indicates that 66% of households that experienced financial difficulty had drained their savings or had no savings in the prior 90 days.

Factors contributing to financial pressure include rising essential expenses outpacing income, income loss, and unexpected expenses. Despite labor-market confidence improving, especially among those facing significant financial pressure, household finances, debt manageability, and buying conditions weakened during the month. The gap between consumer perceptions of the economy and their personal financial security remains evident.