New survey: Americans feel financial strain

[00:00:00]You know, if it feels like your paycheck just isn't going as far as it used to, you are not alone. There is a new survey out this morning that finds middle-income Americans, more than seven in 10 of them, say their income just isn't keeping up with the cost of living and many now having to make some tough financial tradeoffs. Joining us now is the CEO of Primerica, Glenn Williams, to help us make sense of these numbers.

[00:00:22]Primerica, financial services company based here in Duluth. Glenn, it's great having you on the show. Good morning, sir.

[00:00:28]>> Good morning, Dan. Great to be with you.

[00:00:30]>> Yeah, it's good to have you. So, 71% of middle-income Americans say their income has fallen behind the cost of living.

[00:00:36]What's What's driving that feeling right now?

[00:00:40]>> I think it's the continued financial stress that middle-income families are under. This quarter's financial security monitor, I I I think it noted two important things. One is the continued stress. The second is the amazing adaptability of middle-income families where they can adjust to these pressures and continue to march forward in their lives.

[00:00:59]>> I thought that adaptability was interesting, too. 70% of people say that they think they will adapt financially.

[00:01:06]So, I mean, that's pretty optimistic. Well more than half. Why do you think that confidence remains so high despite these pressures?

[00:01:15]>> I don't think families have any other choice than to adapt. I mean, there's no other alternative. There's no There's no quick fix to the situation.

[00:01:22]The cost of living pressures have built up over a number of years and even though we saw some easing earlier in the year, gas prices are working against us right now. Still, that build-up over time is something that is going to take families a long time to get over. But, it's amazing how resilient, how optimistic middle-income families are and when we work with them, they're looking for solutions. They're not saying They're not giving up. They want to find a path forward and and that's to be commended.

[00:01:49]>> And look, we're talking about middle-income Americans here. So, So, they still have perhaps a little bit of a cushion. They might just be needing to put their dollars in different buckets.

[00:01:58]Where where are you finding folks cutting spending right now?

[00:02:03]>> You're exactly right. It's it's a case of prioritization. Most families do have some room, even though they may not realize it or feel it. When we sit down with them and we look for the money, we find some money falling through the cracks and then we can redeploy that.

[00:02:17]So, we find sometimes money that families didn't even realize was in their budget. We find that maybe they have lower tax withholding this year they didn't realize or they're spending money on streaming services they're not using. Usually there's some areas where you can improve your prioritization and free up some money to get started on a path toward a more secure financial future.

[00:02:36]>> What about when it comes to delaying maybe contributing to your 401k or delaying medical or dental care?

[00:02:44]What's your advice in that regard?

[00:02:47]>> Well, those are two areas of great concern to us, Dan. Clearly, time is in your favor when you're saving for retirement. So, the longer you delay, the more damage you're doing to your future. So, we really encourage families to begin their retirement savings as early, even if it's a very small amount.

[00:03:02]Start a systematic program so that they can get ahead of the game and have time working in their favor. The other item you mentioned of health care, that was very concerning that families reported they were delaying health and dental procedures because of the cost. I mean, building wealth for your family is important, but it's not the most important thing in life and health is clearly more important than finances.

[00:03:22]So, we encourage families not to delay those important priorities in life as well as some others that are more important than wealth.

[00:03:29]>> Glenn, you know, we are now in the second half of 2026, believe it or not.

[00:03:34]As you look ahead to the second half of this year, how does Primerica see things shaking out economically speaking?

[00:03:41]>> Well, I I think we were seeing improvement earlier in the year. We would expect that to return if we can get beyond the impact of the war in the Middle East, primarily again gasoline prices, but also that comes through in food and energy, uh utilities, that type of thing. I think we would have reason to be optimistic if we can get beyond that one issue and the impact it's having because there were some strong fundamentals in the economy earlier in the year. We would expect those to continue uh if we can get to that point.

[00:04:09]>> Uh no doubt the war weighing on inflation. Um interest rates kind of have a question mark by them at this point. That it's also an election year, some big midterms here in in the state of Georgia. You're in the Lithia I'm in downtown Atlanta right now. The president actually going to be in Cobb County today speaking about the Trump accounts. What kind of impact could the election have on the economy this year?

[00:04:32]>> I I think it it's a significant factor.

[00:04:35]I mean, we are we are Georgia's an important state in the election. We're right in the thick of it, but I do think that uh the cost of living challenges that the financial security monitor identified are on voters' minds. And so, there are a lot of other important things going on in the world and in our political process in the US and in Georgia, but I think if I were a candidate, I would keep these concerns that we're talking about today of family finances at the front of my platform messaging because that's what families are dealing with first uh is their own financial condition. It's all about the economy. It's all about the cost of living in my opinion.

[00:05:09]>> That's Glenn Williams, CEO of Primerica.

[00:05:11]We appreciate your time. I got 30 more seconds if you have any final thoughts this morning, sir.

[00:05:16]>> Well, I would encourage families to to note the positive side of what we saw in the financial security monitor and that is is there are there are paths forward.

[00:05:25]There are things you can do even though they seem small uh even though sometimes the the intangible future priorities in life don't compete well with the immediate concerns. I would encourage families to take a look and see what they can do. Sit down with an advisor, get some advice, look for where the money's falling through the cracks, and then deploy that money for something that can help their families financially in the future.

[00:05:46]>> Important to pay yourself early and often. Your future self will thank you.

[00:05:50]Glenn Williams, great talk with you.

[00:05:51]Thank you, sir.