Americans Spend More Than Half Their Pay in Two Days

A new Talker survey conducted on behalf of EarnIn finds that the average American spends more than a third of their paycheck within 12 hours of receiving it. By 48 hours, nearly half of their pay is gone.

Millennials lead all generations in early spending, using an average of 40% of their paycheck within the first few hours after it arrives. The survey of 2,000 employed Americans, split evenly by generation, found that most of that immediate outflow goes toward essentials.

More than half of respondents said they pay for groceries or other necessities right away (52%), while 48% cover bills due within the week and 42% make major payments such as rent or credit cards. About one in three (32%) handle smaller obligations like utilities or subscriptions.

Only 28% said they prioritize savings immediately after payday. Nearly two in five millennials (38%) plan out their spending in advance, and about a third of Gen X respondents (32%) time their payments to coincide with their paycheck's arrival.

Still, 34% of all respondents admitted they overspend in the days following payday, including 52% of Gen Z and 45% of millennials.

The leading causes for overspending were having most bills due early in the month (31%) and overdue payments (30%).

Gen Z participants also reported social pressures tied to payday, with 22% feeling compelled to spend as soon as money lands in their accounts and 18% saying they spend to keep up with higher-earning friends.

The study found that 73% of respondents feel stressed about their financial situation. Among them, 62% said being paid daily or as they work would improve their financial wellness and reduce stress by 57% on average.

More than half of Gen Z (54%) and 43% of millennials said they often feel short on cash, compared with just 18% of baby boomers.

Gen Z respondents reported spending about $275 on overdraft or late fees in the past year, roughly 10 times the $27 average among baby boomers.

"Gen Z is spending 10 times more on overdraft and late fees than baby boomers, not because they're less responsible, but because they're navigating tighter margins within an infrastructure that hasn't adapted to their needs," an EarnIn spokesperson said.

Only 15% of respondents had heard of Earned Wage Access, a system that lets employees draw wages as they earn them. Yet nearly half (47%) have accessed pay early through their employer, with millennials (56%) and Gen Z (54%) most likely to do so.

"More frequent access to earnings helps workers pace their spending, budget more effectively, and prepare for the unexpected — all without taking on debt," the spokesperson added.

The survey was commissioned by EarnIn and conducted online between Aug. 18-25, 2025.

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