For First Time, Respondents More Concerned About Cost of Everyday Goods vs. Rising Debt Levels, Reflecting Pressure of Inflation

Additional Findings Show that Respondents Remain Very Hopeful About Improving Their Personal Financial Well-Being Despite Increase in Personal Debt and Continued Concern about the Broader Economy

Operation HOPE, a national nonprofit dedicated to helping low- and moderate-income Americans thrive in an ever-changing economy, today announced the second quarter 2024 results of The HOPE Insider, a comprehensive nationwide client survey. This quarter’s survey revealed for the first time that the top financial concern for respondents is the cost of everyday goods, reflecting the impact of inflation pressures. Other key findings show increases in personal debt, uncertainty about the broader economy, and decreases in summer vacation spending. In addition, the survey continues to show positive sentiment on respondents’ personal financial outlooks and decreases in housing concerns.

The HOPE Insider survey has been conducted quarterly by Operation HOPE’s research team since November of last year. This latest survey, which took place from July 15 to July 31, 2024, was sent to Operation HOPE’s client base of adults, small business owners, and entrepreneurs who have sought the organization’s financial wellness services. More than 2,000 Operation HOPE clients responded, providing key insights into American financial sentiment relating to housing, debt, small business ownership, work and general economic optimism, as Americans navigate the complex challenges of the current economic climate. The survey features a diverse representative set with respondents from all adult age ranges, ethnicities, genders, and household incomes across the U.S. The quarterly survey tracks overall trends, with additional questions to reflect timely issues. Its goal is to gather a broad-based understanding of the sentiment of Operation HOPE clients on a regular basis to better support their needs and to serve as an indicator of the real-time financial and economic concerns of the American public.

Key quarter-over-quarter sentiment findings:

Impact of inflation is top of mind – cost of everyday goods has overtaken personal debt as having the largest impact on respondents’ lives and their biggest worry looking ahead

• For the first time, the highest percentage of respondents (37.9%) said that “cost of everyday goods” is the factor that has impacted their lives the most over the last three months – reflecting nationwide concerns about inflation
  • This is a more than 10 percentage point increase over Q4 2023
• In the two previous quarters, the largest percentage of respondents said “rising debt levels” were the most impactful factors in their lives
• Largest percentage of respondents (33.9%) this quarter also noted that “cost of everyday goods” is their biggest worry (an increase of 7.3 percentage points over last quarter and 9.3 percentage points over Q4 2023)
  • Last quarter, the largest percentage (31.7%) said “cost of housing” was their biggest worry and in Q4 2023 the largest percentage (31.5%) said “rising debt levels” was their biggest worry

Despite inflationary concerns, respondents are increasingly hopeful about their personal financial wellbeing this quarter vs. last quarter

• 47.0% of respondents said they are “very hopeful” that their financial well-being will increase this quarter vs. 42.6% last quarter

Respondent sentiment on housing improved

• Percent of respondents that are “very concerned” about the cost of housing in their own communities is down from last quarter (60.3% this quarter vs. 66.6% last quarter)
• Percent of respondents considering purchasing a home but finding it unaffordable is also down from last quarter (35.6% this quarter vs. 43.4% last quarter)

New findings from this quarter’s survey:

Personal debt increased since last quarter

• More than half of respondents (53%) said their personal debt levels have increased over the last three months, with almost an additional quarter of respondents (23%) saying it has stayed the same

Summer vacations decreased this year

• More than half of respondents (53%) have not taken, or are not planning to take, a vacation this summer
• Of those who are planning to, more than 27% will be spending less than $500
• Nearly half of respondents (42%) said they would be spending less on vacation this year vs. last year
• Only 20% said they were able to budget for more spending on vacation this year

Uncertainty looms over financial ease in the future

• Only 20% of respondents said that they think there will be “good times” ahead financially, 34% said they think our country will have “bad times” financially over the next year, and the remaining are unsure (46%)

An overwhelming number of families are living paycheck-to-paycheck

• 75% of respondents consider themselves or their families to be living "paycheck-to-paycheck," meaning that they are not able to save money or plan for the future
• This is seen more profoundly with lower-income families:
  • 89% of those making less than $25,000
  • 85% of those making $25,00 to $49,999
  • 75% of those making $50,000 to $74,999
  • 72% of those making $75,000 to $99,999
• Interestingly, 50% of households making $100,000 or more say they are living “paycheck-to-paycheck,” and this only goes down (to 27%) once they are above the $200,000 threshold – implying that even higher income households are feeling the same strain

Operation HOPE Client Impact

The high percentage of respondents reporting that they felt optimistic about their personal financial future despite current challenges and concerns about the broader economy demonstrates the value of the financial wellness coaching and support they receive from Operation HOPE. This optimism is reflected in HOPE’s year-to-date 2024 impact report, showing that through Operation HOPE’s services, clients have experienced an average increase of 40 points in credit scores (of those who saw improvement), a median decrease in debt of $1,871, and a median increase in savings of $1,145.

About Operation HOPE, Inc.

Since 1992, Operation HOPE has been moving America from civil rights to "silver rights" with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $3.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information: OperationHOPE.org. Follow the HOPE conversation on Twitter, Facebook, Instagram or LinkedIn.

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