For generations, being middle class meant believing that hard work would eventually pay off in the form of financial security. Today, many Americans feel they\u2019ve held up their end of the bargain, but said security never arrived.<\/p>\n
Researchers call these people the \u201cconflicted middle\u201d \u2014 folks who appear financially stable on paper, but still worry about whether they\u2019ll be able to weather the next emergency. A survey from Edward Jones and Gallup (1) found that 51% of U.S. adults fall into this category, caught between stability and uncertainty.<\/p>\n
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\u201cWe\u2019re, like, \u2018Oh, my God, what if we have an emergency?\u2019\u201d Nicholas Wallace, a 34-year-old plastics manufacturer, told The Wall Street Journal (2). \u201cAre we going to be able to stand up from that?\u2019\u201d<\/p>\n
Here\u2019s why Americans are feeling stuck between financial stability and financial security.<\/p>\n
Who makes up the conflicted middle? <\/p>\n
Wallace checks many of the boxes traditionally associated with financial stability. He has a full-time job, health insurance and a retirement account, and he and his wife bring in about $90,000 a year living in Madison, Wisconsin.<\/p>\n
But like many Americans, rising costs have left him looking for ways to stretch his budget. To help bring in extra income, he recently took a second job answering calls at a veterinary clinic.<\/p>\n
The rising cost of groceries has also changed some of the family\u2019s spending habits. In the past, Wallace would buy beef from a local farm and freeze it for future meals. The couple decided against it after the price of their order jumped by nearly $400. Instead, Wallace said they now spend more time looking for deals at local grocery stores.<\/p>\n
While inflation has cooled from its pandemic-era highs, grocery prices remain significantly above where they were just a few years ago. According to inflation data (3), food-at-home prices have risen roughly 28% since the end of 2019, with beef prices among the categories seeing some of the steepest increases.<\/p>\n
Wendy Molyneux, a certified financial education instructor and author of Financial Trauma: Why Money Isn\u2019t Just About Money, told Moneywise that many households are experiencing what she calls \u201cambient financial strain\u201d \u2014 a constant background pressure that develops when the economy moves faster than household budgets can adapt.<\/p>\n
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\u201cMany middle-class families are caught in a confusing position,\u201d she said. \u201cEven households that are earning decent incomes often feel as though they\u2019re running just to stay in place.\u201d<\/p>\n
Read More: About 1 in 5 Americans over 50 has zero retirement savings \u2014 here’s the catch-up plan you can actually use<\/a><\/p>\n Doing everything right <\/p>\n One of the defining characteristics of the conflicted middle is that financial stress isn\u2019t necessarily tied to financial crisis.<\/p>\n \u201cFinancial stress isn\u2019t limited to people in crisis\u2014it\u2019s affecting millions who appear stable but don\u2019t feel secure or fulfilled,\u201dPenny Pennington, managing partner at Edward Jones, said in the report (1).<\/p>\n The report defines financial fulfillment as feeling like your finances support the life you actually want to live \u2014 whether that\u2019s spending more time with family, pursuing personal goals or feeling confident about the future.<\/p>\n For many Americans, fulfillment isn\u2019t tied to luxury. One 31-year-old survey respondent described it as having enough money for \u201cfamily outings, whether that be just to get some ice cream or a full vacation.\u201d<\/p>\n That disconnect can be especially frustrating because they\u2019ve done many of the things traditionally associated with financial success.<\/p>\n \u201cMany people were taught that working hard, getting an education, and managing money responsibly would lead to financial peace of mind,\u201d Molyneux said. \u201cWhen they follow that formula and still feel stressed, they often assume they\u2019ve done something wrong. In reality, many of the pressures they\u2019re experiencing are larger than any one household.\u201d<\/p>\n Part of that stress comes from trying to balance today\u2019s financial realities with tomorrow\u2019s goals. Pennington said many Americans are thinking not only about their current expenses, but also about their children\u2019s future, retirement and other long-term plans and what it will take to make those goals a reality.<\/p>\n What to do if you\u2019re feeling financially conflicted <\/p>\n Molyneux said one of the most important steps is recognizing that financial stress isn\u2019t always a reflection of personal failure.<\/p>\n \u201cWhen people recognize that a lot of their stress reflects structural challenges rather than personal failure, they\u2019re often able to make clearer financial decisions and focus on building practical forms of resilience rather than chasing an idealized version of financial security,\u201d she said.<\/p>\n That resilience can take many forms. Financial experts often recommend focusing on the factors within your control, such as building an emergency fund<\/a>, reducing high-interest debt<\/a> and creating a buffer for unexpected expenses<\/a>. While those steps may not eliminate every financial challenge, they can help households navigate periods of uncertainty with greater confidence.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n Article Sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>.<\/p>\n Edward Jones (1<\/a>); The Wall Street Journal (2<\/a>); farmdoc daily (3<\/a>)<\/p>\n This article originally appeared on Moneywise.com<\/a> under the title: ‘The conflicted middle’: Half of America belongs to a new financial class where you still feel broke despite good income<\/a><\/p>\n This article provides information only and should not be construed as advice. 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