Anatomy of the average American paycheck

The average American has already mentally spent more than half of their paycheck before it lands in their account, according to a new survey.

The survey polled 2,000 employed Americans who make less than $75,000 per year and explored where this money goes, revealing the "anatomy" of a paycheck.

Between mismatched living costs and salary (44%) and sporadic, inconsistent due dates (31%), results found that nearly three in five (59%) pre-plan what gets paid first while waiting for their paycheck, resulting in 51% of those funds being pre-spent.

Overdue bills (38%) are another leading cause in allocating their pay before they have it. In fact, only 40% of those polled don’t have any overdue bills, while 55% have somewhere between one and four during any given month.

Large bills, such as rent or a mortgage (56%), necessities, such as food and medications (51%) and smaller bills like electric or water (38%) are all more likely to be the first things paid after receiving their paycheck than overdue bills (29%).

Conducted by Talker Research on behalf of EarnIn, results also found that the average American spends about 43% of their paycheck within the first three days after receiving it, in addition to the 51% that’s pre-spent.

The survey also put the 50/30/20 budget rule to the test; a rule where 50% of your paycheck should go to need, 30% should go to wants and 20% should go into savings.

Results found that the average respondent puts the majority of their funds, 64%, towards “needs” such as food, bills and housing. Only an average of 16% is dedicated to “wants” or something fun, and just 16% gets put into savings.

More than half (56%) indicated that less than 10% of their pay goes into savings and another 23% can’t remember the last time they were able to stash 20% of their income in their savings, as the budget rule suggests.

Only 20% of Americans don’t run out of money or have to live on a tight budget in the days leading up to getting their paycheck. But for those that do, 62% struggle to afford groceries, pay large and small bills (both 30%) or even medications (16%) and loan payments (16%).

Nearly two in five (39%) will turn to a side hustle when they need additional funds, while others rely on their family (31%) or credit card (28%). Still, that leaves 14% left completely without options.

“Results found that only 5% of respondents can turn to their bank to transfer their paycheck early, while even fewer (4%) can turn to their employer for early pay,” said an EarnIn spokesperson. “In today’s world, employees shouldn’t have to wait days to access the money they’ve already earned. People deserve financial solutions that provide faster access to their pay—regardless of where they bank—so they can manage their money on their own terms, not their bank’s schedule.”

Despite so few Americans being able to rely on their bank for early paycheck access, the average person has been with their bank for nine years, while 14% estimate it’s been between 19 and 20 years.

More than half (57%) attribute this bank loyalty due to the fact that they’re simply comfortable with them.Only 20% indicate that they stay with their bank because they are able to access their paycheck sooner.

If Americans polled were able to get their paycheck up to two days earlier, a little more than a third (34%) would be able to pay bills on time, while 29% said they’d feel less stressed about finances overall. Almost one in five (19%) would be able to pay rent on time or even put more money into savings (15%).

Overall, 56% would feel more financially secure if they were able to receive their paycheck up to two days before it typically lands in their account.

Survey methodology:
Talker Research surveyed 2,000 employed Americans who make less than $75k; the survey was commissioned by EarnIn and administered and conducted online by Talker Research between Jan. 24 and Jan. 28, 2025.

We are sourcing from a non-probability frame and the two main sources we use are:
● Traditional online access panels — where respondents opt-in to take part in online market research for an incentive
● Programmatic — where respondents are online and are given the option to take part in a survey to receive a virtual incentive usually related to the online activity they are engaging in
Those who did not fit the specified sample were terminated from the survey. As the survey is fielded, dynamic online sampling is used, adjusting targeting to achieve the quotas specified as part of the sampling plan.

Regardless of which sources a respondent came from, they were directed to an Online Survey, where the survey was conducted in English; a link to the questionnaire can be shared upon request. Respondents were awarded points for completing the survey. These points have a small cash-equivalent monetary value.

Cells are only reported on for analysis if they have a minimum of 80 respondents, and statistical significance is calculated at the 95% level. Data is not weighted, but quotas and other parameters are put in place to reach the desired sample.

Interviews are excluded from the final analysis if they failed quality-checking measures. This includes:
● Speeders: Respondents who complete the survey in a time that is quicker than one-third of the median length of interview are disqualified as speeders
● Open ends: All verbatim responses (full open-ended questions as well as other please specify options) are checked for inappropriate or irrelevant text
● Bots: Captcha is enabled on surveys, which allows the research team to identify and disqualify bots
● Duplicates: Survey software has “deduping” based on digital fingerprinting, which ensures nobody is allowed to take the survey more than once
It is worth noting that this survey was only available to individuals with internet access, and the results may not be generalizable to those without internet access.