Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

How Middle-Income Families Can Gain Financial Ground as Purchasing Power for Basic Household Necessities Fluctuates

(BPT) - Managing household finances can be challenging, especially for middle-income families juggling daily expenses, savings goals and unexpected costs. The latest data from the Household Budget Index™ (HBI™) report, which is a monthly economic snapshot measuring the impact of inflation on middle-income households alongside their earned income, reflects these challenges. The most recent index shows that purchasing power for middle-income families fell in February, ending a trend upwards. Rising costs for necessities like gasoline, auto insurance and utilities are behind this slide.

Overall, average purchasing power remains higher than it was a year ago and still shows significant improvement from 2022 lows. However, the latest Financial Security Monitor™ survey reveals that 62% of middle-income Americans say they are stressed about money and finances. Though their dollars are stretching further than they were a year ago, economic uncertainty continues to weigh on their minds.

More financial flexibility

Rising purchasing power means families have more breathing room in their budgets than they did a year ago. But with fluctuations in the cost of necessities like gas, auto insurance, groceries and utilities, a financial cushion is needed to build long-term stability and security. For example, when purchasing power is up, families can use this flexibility to contribute more to emergency funds, ensuring they are better prepared for unexpected medical expenses or home repairs.

Looking ahead

Looking ahead this year, prioritizing financial well-being is more important than ever. By staying informed and making smart money moves, middle-income families can turn future purchasing power gains into lasting financial security. To keep track of these trends, the Household Budget Index™ data remains a valuable tool for understanding where purchasing power stands and how families could continue to make the most of their money.

Ultimately, the latest dip in purchasing power serves as a reminder that having a financial game plan remains crucial. Families who take proactive steps today - whether through budgeting, saving or seeking expert advice - will be in a stronger position to weather economic changes and could work to build a more secure financial future. With careful planning, middle-income households can take advantage of upcoming developments to achieve greater financial stability and long-term success.

The information contained herein is for information purposes only. The Household Budget Index™ (HBI™) report is derived from data believed to be reliable, but we cannot warrant its accuracy or completeness. Such information is subject to change and is not intended to influence investment decisions nor constitute investment advice. PRIMERICA and the Primerica Logo are trademarks of Primerica, Inc., registered in the U.S. and Canada. Household Budget Index™, HBI™ and the HBI Logo are trademarks of Primerica, Inc. All rights are reserved.

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