America’s new financial middle: Not in crisis, not thriving either

Nicholas Wallace, by his own estimation, isn’t experiencing a financial crisis. But he wouldn’t say he is thriving, either.

The 34-year-old has a full-time job at a plastics manufacturer, as well as health insurance and a retirement account. He and his wife together make $90,000 a year in Madison, Wis. They consider themselves middle class. But food and gas costs keep eating into their budget. Recently, Wallace took a second job answering calls at a veterinary clinic.

“We’re like, ‘oh my God, what if we have an emergency?’” he said. “Are we going to be able to stand up from that?’”

Some 51% of U.S. adults place themselves alongside Wallace in this financial gray area, according to a new survey by Edward Jones and Gallup, their first on the topic.

The survey, expected to be released Tuesday, labels this group financially “conflicted,” with respondents describing feeling a mix of stability and uncertainty. Roughly 5,000 people were polled in late March and early April.

People feel conflicted because they are weighing more than today’s bills, according to Penny Pennington, managing partner at Edward Jones. They are looking ahead at the schools their children and grandchildren might attend, the lives they will lead and the cost of making it possible.

Just 16% of respondents expressed a state of confidence about their money, a separate bucket that the survey categorizes as financially “fulfilled.” On the other end of the spectrum, 32% said they were financially stressed.

The state of limbo cuts across income levels. Roughly seven in 10 households earning $135,000 or more said they don’t feel financially fulfilled.

The U.S. economy continues to grow and add jobs at a steady clip, but even among higher earners, Americans are racking up more credit-card debt and having a harder time paying it off. The U.S. personal savings rate dropped to 2.6% in April, the lowest level since June 2022.

Gas prices, in particular, have weighed on sentiment. They have jumped since the war in Iran began, a visible depiction of rising costs. Food costs have risen as well. And corporate layoffs feed a sense of job insecurity. People who consider themselves middle class and above are still spending, but some say they are more judicious with their cash.

“They have to be very conscious of where every dollar is going,” said Heather Long, chief economist at Navy Federal Credit Union. “They can’t do everything that they were doing a few years ago, something has to give.”

Wallace and his wife have changed their grocery-shopping habits in response to rising costs. In prior years, they would order beef from a local farm and freeze it to use over time. Wallace said they stopped doing that this year after the cost of their order went up about $400. Now they look for sales at their local grocery stores.

The couple has also cut down on dining out, from once a week to once a month. Wallace said it used to cost $20 to fill up his gas tank, now it costs about $32. Wallace’s part-time job as a veterinary-clinic receptionist, which he started in November, brings in an extra $460 a month.

Write to Oyin Adedoyin at oyin.adedoyin@wsj.com and Dalvin Brown at dalvin.brown@wsj.com