A growing share of Americans earning six-figure salaries are struggling to cover an unexpected expense, according to a new report from fintech lender SoLo Funds. The 2025 Cash Poor Report, released in partnership with Opinium Research, Morgan State University, the Global Black Economic Forum, the Aspen Institute Financial Security Program, and the Independent Women's Forum, surveyed 2,000 U.S. adults and found that 44% of respondents describe themselves as cash-poor—defined as holding less than $200 in savings.
Among those cash-poor individuals, one in five earns more than $75,000 annually, a finding that underscores how persistent inflation and rising costs are squeezing budgets well beyond traditional low-income brackets. Nearly two-thirds of all respondents said their financial position was worse than they had anticipated, and more than 70% described the past year as financially stressful. The proportion of cash-poor Americans has grown by nearly 17% since the report's first edition in 2023.
Millennials and Gen X together account for close to 60% of the cash-poor population, with Millennials making up the largest share at 35%. For the first time, Gen Z represents a bigger segment of cash-poor Americans than Baby Boomers. Around 38% of Gen Z respondents and 39% of Millennials said they had been refused a checking account, pointing to widening gaps in financial access for younger adults. Despite their struggles, 41% of cash-poor Americans work full-time, with nearly half supplementing their income through a side hustle.
The report also mapped the true cost of short-term borrowing, noting that fees beyond headline interest rates—including origination charges, subscription costs, and late payment penalties—add substantially to what consumers actually pay. Subprime credit cards generated an estimated $17.4 billion in annual borrowing costs, making them the most widely used and most expensive option. Buy now, pay later products cost consumers $3.1 billion a year, while earned wage access and cash advance services came in at around $1.6 billion. Peer-to-peer fintech lending, at approximately $925 million in annual costs, was identified as the least expensive category in the study.
For financial advisors, the findings highlight a growing need to address clients' short-term liquidity and emergency savings, even among those with higher incomes. The data also suggest that younger clients may be turning to alternative credit products that carry hidden costs, potentially undermining long-term financial plans. Advisors may want to discuss cash reserves and the true cost of borrowing as part of broader financial wellness conversations.
The report comes amid broader economic uncertainty. A recent Allianz survey found that 62% of Americans fear a recession, and 58% are seeking more portfolio protection. Meanwhile, a CFP Board survey revealed that 62% of Americans have encountered financial fraud, yet only 37% are confident in detecting it—underscoring the importance of financial literacy and planning.
As the cash-poor crisis spreads to higher earners, advisors may need to reassess how they frame emergency savings and debt management for clients across income levels. The SoLo Funds report suggests that even those earning six figures are not immune to the financial strain that has become a hallmark of the current economic climate.
