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June 23, 2026

As Affordability Crisis Worsens, New Data From The “2026 Cash Poor Report” Shows Nearly Half Of Americans Can’t Pay A $1,000 Emergency Expense 

As Affordability Crisis Worsens, New Data From The “2026 Cash Poor Report” Shows Nearly Half Of Americans Can’t Pay A $1,000 Emergency Expense 

Findings Highlight How Households Living Paycheck to Paycheck Are Expanding Beyond Traditional Income Lines As Financial Pressures Intensify 

 

Los Angeles, CA, June 23, 2026 — SoLo Funds, the largest AI community banking solution in the U.S., is announcing today the release of The 2026 Cash Poor Report, an annual survey that examines Americans living paycheck to paycheck and the total cost of borrowing money from common short-term lending options over a 12-month period. This year’s report reveals troubling financial trends, as nearly half of the U.S. population (44%) identify as being cash-poor with less than $200 in their savings account and two-thirds reporting their financial situation is worse than expected. The proportion of cash-poor Americans unable to pay an unexpected expense increased nearly 17% since our first report in 2023. Being cash-poor is no longer confined to low-income households, and a growing number of Americans who struggle to cover their bills are working middle-class Americans with one in five having incomes exceeding $75,000. In 2023, 1 in 10 made $100K annually, and by 2025, 1 in 7 earned over $75K. The numbers highlight mounting economic pressures impacting these individuals who turn to expensive options like subprime credit cards, costing $17.4 billion in fees outside of the APR, despite the data showing that SoLo Funds and other fintechs continue to rank as the cheapest option to access short-term capital for the third consecutive year. 

 

The 2026 Cash Poor Report was conducted in partnership with Opinium Research, Morgan State University, The Global Black Economic Forum, The Aspen Institute, Financial Security Program, and the Independent Women’s Forum. The study surveyed 2,000 American adults across the country spanning Gen Z, Millennials, Gen X, Boomers and the Silent Generation and found that: 

 

• • Millennials and Gen X now account for nearly 60% of all cash-poor Americans surveyed, with Millennials representing the largest segment at 35%. For the first time since the study began, Gen Z represents a larger share of cash-poor Americans than Baby Boomers, signaling that financial instability is increasingly affecting younger generations as well.
  • Nearly one in five cash-poor Americans serves as a caregiver for a family member or loved one, while more than one-third report living with a chronic health condition, impairment, or disability. These additional responsibilities create financial burdens that often make saving for emergencies nearly impossible.
  • The report found that 41% of respondents work full-time, yet many remain unable to build meaningful savings. Nearly half report having a side hustle to supplement their primary income, underscoring the growing difficulty many households face in keeping pace with everyday expenses. Nearly half of cash-poor Americans have less than $200 in their savings accounts, leaving them dangerously exposed to unexpected expenses such as medical bills, vehicle repairs, or housing emergencies.
  • Financial stress continues to deepen across key demographic groups. More than seven in ten respondents described the past year as financially stressful, while nearly two-thirds said their financial situation had been worse than expected. Women, older Americans, and those with limited savings reported particularly high levels of financial strain.
  • Unplanned expenses cost the average American family living paycheck to paycheck $1,457 a year. The most common unplanned expenses include medical bills (33%), utility bills (25%), and auto repairs (24%). Top planned expenses are groceries (86%), gas (67%), mortgage payments (61%), and rent (58%) 
  • Younger Americans, namely Gen Z (38%) and Millennials (39%) are being turned down by their banks for a checking account – unable to get access to cash when they need it the most. 
  • The Fees Consumers Pay When Borrowing Money: 

• The APR rate continues to exclude late fees, origination fees, subscription fees, transaction fees and other expenses that can create debt traps for consumers in a financial crisis. Fintechs with newer fee structures like tips and donation are more affordable than APR-driven products. 

• Subprime credit cards: These cards remain the most used and expensive option for covering an unplanned expense, accounting for $17.4 billion in aggregate borrowing costs with 51% of principal borrowed. 

• Payday loans: The second most expensive product costs cash-poor Americans $6.64 billion in fees and borrowing costs with an average borrowing cost equal to 46% of the principal borrowed.

• P2P Fintechs: The total annual borrowing costs associated with peer-to-peer lending remained under $1 billion, approximately $925 million, with average borrowing costs of approximately 17% of principal borrowed but the lowest minimum fee, making it the least expensive borrowing category examined.

• • BNPL: Costs cash-poor Americans $3.1 billion in fees and borrowing costs and carries an average borrowing cost of 21% of the principal borrowed. 
  • EWA / Cash Advance: Along with P2P and BNPL, EWA represents a more affordable borrowing option, costing cash-poor Americans $1.6 billion in fees and borrowing costs and carrying an average borrowing cost of 9% of the principal borrowed.
  • Small Dollar Bank Loans: The third most expensive product (after subprime and payday loans) costing cash-poor Americans $3.9 billion in fees and borrowing costs, with 24% of the principal borrowed. 
  • Friends & Family: The second most popular option with 37% of cash-poor Americans turning to loved ones when they are in need of cash. 
  • Going Without: Many consumers are becoming more selective about borrowing, or are being excluded from traditional financial products altogether. As a result, households increasingly rely on family networks, informal lending arrangements, and even resort to crime. 

 

The Cash Poor Report was created to better understand today’s financially vulnerable consumers and to challenge outdated assumptions about who lives paycheck to paycheck. The findings reveal that the modern cash-poor consumer is increasingly diverse, spanning generations, income brackets, employment statuses, and life circumstances; from full-time workers and retirees to caregivers and households earning more than $75,000 annually. As financial instability continues to rise and emergency savings remain scarce, millions of Americans are turning to short-term capital to bridge gaps between paychecks or cover unexpected expenses. Understanding the borrowing options available to consumers, and the fees, costs, and tradeoffs associated with those products is critical to helping Americans make more informed financial decisions.

 

“The profile of financial hardship in America is changing,” said Rodney Williams, Co-Founder and President of SoLo Funds. “The stereotype that living paycheck to paycheck only affects low-income households is increasingly disconnected from reality. Today’s cash-poor Americans are workers, parents, caregivers, retirees, and even households earning well above the national median income. They deserve access to the best and most affordable products, which according to the data, are fintechs. We hope these findings encourage the industry to be more open to innovation, as it could save Americans the most money.” 

 

To download the full report and learn more about the 2026 Cash Poor Report, please visit: https://solofunds.com/thecashpoor/