PYMNTS report splits U.S. consumers into three spending groups as prices rise

PYMNTS Intelligence’s 2026 analysis finds that 45% of U.S. adults keep spending flat or raise it despite higher bills, while 34% cut both spending and savings and 21% boost income or rely on installment plans. Among the proactive group, 48% use buy now, pay later to manage expenses, compared with just 8% of the reactive group.

The report also notes that 66% of all consumers have reduced everyday spending and 51% have avoided large purchases, yet only 21% have tried negotiating bills. Side work is common, with 37.6% of workers having taken on extra jobs in the prior six months to supplement income. Within the baby‑boomer generation, 69% of reactive consumers report daily living pressure, a 31‑point gap versus the 38% of balanced boomers facing the same strain.

PYMNTS Intelligence’s “The Fragmented Paycheck: Why Rising Spending No Longer Means Stronger Demand,” part of The American Paycheck 2026 Annual Edition, examines how households earn, spend and manage financial pressure. It draws on four research programs covering financial lifestyles, generational behavior, credit use and consumer expectations.

What we know

• Balanced consumers account for 45% of adults

• Reactive consumers represent 34% of adults

• Proactive consumers make up 21% of adults

• Buy now, pay later use as a coping tool reaches 48% among proactive consumers and 8% among reactive consumers

• 37.6% of workers did side work during the previous six months