Two-thirds of American middle-income families feel they are falling behind the rising costs of living in the US, according to data from Primerica. Though a tick down from last year's sentiment of 71%, this is still a worrying figure as more Americans are dealing with price pressures tied to housing costs and food prices.

Primerica (PRI) CEO Glenn Williams talks more about the data with Brad Smith, stating "we also detect a high level of stress financially from these families" as US consumers reprioritize their spending.

"As we sit down with families, clearly they know they need to be saving for the future, particularly for retirement. They need to make sure debt doesn't get out of control. But we see them in action. We sit down with them and first analyze where they are today. And that's where it exposes that. What sometimes they think is happening is not exactly what's happening. They're spending more than they think. They're using credit more, they're saving less, or the amount that they're saving is not going to get them where they want to go in time," Williams elaborates.

"And then as families get started, they get a little momentum. And then they find out it's easier to take the next step and the next step. We find out that, Brad, it's not usually the information, it's the personal application of the information to their specific circumstances that confuse families. And then it's the motivation to act and continue to act that families need."

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This post was written by Luke Carberry Mogan.

Video Transcript

Middle income families continue to remain anxious about the state of the economy with two thirds of families reporting their income falling behind the cost of living though on the upward swing from this time last year, this is all according to the newest survey from Prime For More.

Let's bring in Glenn Williams, the CEO of Prime Glenn.

Great to see you and thanks for hopping on the show with us.

All right.

So what are we seeing?

What's the feel the vibe across middle income families from the data that you're seeing in America?

Well, Brad, it's great to be with you.

And as you saw from the headline stat, uh you know, two thirds still feel they're falling behind.

So I would say middle income families still feel like they're in retreat financially.

Uh We also detect a high level of stress financially from these families.

And of course, we all know stress is not good for our physical health nor for our relationships.

But within the numbers, we saw that three quarters are cutting back and of course, that is actually good.

That's what people should be doing is reprioritizing.

The challenge is that half are reducing savings or stopping savings entirely and 30% can uh report continued increase credit card usage.

So what's happening is they're shifting priorities.

That's good when they stop savings.

But uh or stop spending, but reducing savings and using more credit is not a good trend.

And so those difficult decisions, where are you seeing perhaps the trade off more largely among households?

Well, it's, it's an item by item process.

When we sit down with families, it's always about prioritizing or reprioritizing.

And so we sit down with families and explain to them that as much as they love those streaming services or the newest model cell phone, uh that is preventing them from achieving their more important financial priorities.

And, and the challenge is, is that time is an ally when you're investing, but it's an enemy when you're borrowing.

And so shifting from saving and investing to borrowing is, is a double negative.

And so that's what we try to demonstrate that to families and then help them through the process of making those tough decisions on what's truly important to them and then taking action on those.

Ok.

So with this in mind, I was looking through some of the findings from your middle income financial security monitor here and the majority grasp financial basics but not complexities here.

Can you break that down a little bit further for us?

Uh And, and where there is understanding about perhaps some of the levers that can be pulled at a household level.

But the execution and in the complexities are, are still perhaps uh daunting at this juncture.

Sure.

Well, as, as humans, we tend to think we, we have a general understanding of things, but maybe we don't know the specific process needed uh to really make an impact.

So as we sit down with families, clearly, they know they need to be saving for the future, particularly for retirement, They need to make sure debt doesn't get out of control.

But we see them in action, we sit down with them and first analyze where they are today and that's where it exposes that.

What sometimes they think is happening, happening.

It is not exactly what's happening.

They're spending more than they think they're using credit more.

They're saving less or the amount that they're saving is not gonna get them where they want to go in time.

And so that's where the decision starts and, and then we help them with the uh step by step process.

I mean, the first thing is you've got to start some savings, even if it's small, you've got to start to reduce your debt.

Uh Even if that's a small process, you got to protect your family with term life insurance.

So there's basic steps and then as families get started, they get a little momentum and then they find out it's easier to take the next step.

And the next step, we find out Brad it's not usually the information, it's the personal application of the information to their specific circumstances that confuse families and then it's the motivation to act and continue to act that families need.

That's a great point, Glenn, you know, just lastly while we have you here, I was looking through some of the drivers and the lack of financial planning and anxiety and limited time were two of the top that came up in this report from Prime America.

You know, as you're thinking about the small decisions that add up to big solutions or perhaps big savings or smart spending habits.

What are the tips that households can employ right now this weekend?

Even as they're starting to think about getting into a better financial standing?

Well, I think you hit the nail on the head brad.

It's sometimes it's sitting down with families and just demonstrating that they can do something.

It's not hopeless.

It's not impossible.

And when we sit down with families, they've got to take a look at, as we saw in the survey, it's things like going out that are optional.

If you can eat in more often, save a few dollars, use those to, to invest or pay down debt.

Look at your streaming services.

That's an area that there's, it's a lot of, of expense that sometimes families don't even realize they have or they're not using any longer.

Uh take a look at, at, at your electronic devices.

The expenses there so many of these things a generation ago didn't even exist.

You know, my generation didn't have to deal with these uh coming through that phase of life.

But now there are things that are optional that people have assumed are mandatory and they need go back and say that's not as important as the greater priorities in my life.

That's financial security for my family.

All right, I gotta finish watching a few Netflix series and, and trigger warning was on my watch list uh as well.

The movie on Netflix before I cancel those streaming services here, Glenn.

But then I'll take some of that advice you just gave.

Thanks so much and then pull the plug.

Glenn Williams Prime America CEO.

Great to see you.