By Bo Tefu, California Black Media  

Rising prices and inflation has left more than half of California’s low-income households struggling financially. In 2024, 29% of residents reported that they or someone in their household has cut back on food to save money, according to a December Public Policy Institute of California report. Many Californians, including 40% of lower-income adults, worry daily about the cost of housing.

“Only one in three Californians think that the American Dream – including the notion that if you work hard, you’ll get ahead –holds true,” stated the report regarding people’s outlook on the current economic condition.

The financial hardships are widespread, as 23% of Californians have experienced reduced work hours, 22% have struggled to pay rent or mortgages, and 21% have been unable to pay a monthly bill. Many also faced health-related financial difficulties, with 20% postponing medical visits or medication purchases, while others sought assistance through programs like CalFresh or food banks.

These difficulties are most pronounced for lower-income households, particularly those earning under $20,000 annually. Renters are especially vulnerable, with 34 percent reporting difficulty paying for housing, compared to just 12 percent of homeowners. Minority groups, particularly African Americans and Latinos, are more likely to report financial hardships than Asian Americans and whites. Among lower-income Californians, younger, less-educated individuals, and those making under $20,000 a year are most likely to experience these challenges.

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Despite national indicators showing steady employment growth and lower inflation, many Californians continue to face low wages, particularly given the state’s high cost of living.

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