Middle class income: See what Bank of America says it is today

What does it take to be considered middle class these days? The answer might surprise you. The U. S. Census Bureau says the average middle-income household earned around $80,000 last year. But is that the whole story?

Not quite. Bank of America recently dug into the numbers, and their findings show it’s more complex than a single figure. Turns out, your lifestyle plays a huge role. Think marriage, homeownership, and even how many income streams you have.

Marriage and Money: A Tighter Connection Than You Think

Turns out tying the knot can impact your income bracket. Married middle-income households? They had a median income of around $103,000, according to Bank of America’s data. That’s a significant jump from the general average. But why?

Maybe it’s the power of two incomes. Or perhaps married couples tend to have different spending habits. Whatever the reason, it’s a factor to consider.

Multiple Income Streams: The New Normal?

One job isn’t always enough these days. Many families piece together income from different sources. Side hustles, freelance work, investments. .. it all adds up.

And it shows in the numbers. Households with two or more income streams considered middle-income? Their income reached about $136,000. That’s a big difference. It makes you wonder, doesn’t it? Is the traditional single-income model becoming a thing of the past?

The Generational Divide: Who’s Middle Class Now?

Here’s another interesting twist: Gen Z and Millennials are making up a bigger chunk of middle-income households. Bank of America’s report highlighted this shift.

“Interestingly, we find middle-income households skew slightly younger than the overall population, with Gen Z and Millennials comprising a larger share of middle-income households than older ones,” the report stated. What does this mean for the future of the middle class? It’s definitely something to watch.

Spending Habits: Gen Z Feeling the Pinch

Middle-income consumers have been increasing their spending, according to Bank of America. But one generation is feeling the pressure more than others: Gen Z.

With prices and interest rates still high, younger generations are facing higher monthly payments for big purchases like homes and cars. It’s a tough situation. Older generations, who bought homes and cars when rates were lower, are comparatively more insulated.

What Does It All Mean?

Defining “middle class” isn’t as simple as looking at a single income number. Your marital status, income streams, and even your generation all play a role. As the economy changes, so does the definition of what it means to be middle class. It’s a conversation worth having.