Americans need to spend more on everything from that shoebox of an apartment to Cap’n Crunch and Kale, only to receive the same as before.

This is defined as a ‘cost of living creep,’ according to a 2024 study from Intuit Credit Karma – a personal finance company – which currently 80% of Americans experience.

“Americans are finding it increasingly difficult to maintain financial stability amidst today’s cost of living. People have been grappling with rising costs for everyday essentials such as food, gas and rent – on top of high interest rates that already hinder their purchasing power,” Courtney Alev, a consumer financial advocate at Intuit Credit Karma told Reckon.

With inflation, high interest rates and stagnant wages, cost of living creep has impacted how people save money, pay off debt and provide financial support to their families.

The study surveyed more than 2,000 adults and, of those experiencing a cost of living creep, 66% said it’s holding them back from achieving their financial goals like not being able to save for retirement (36%), afford everyday expenses (27%) and buying or maintaining a car (21%).

People aren’t just struggling to meet their financial goals, but also to make ends meet.

“To make ends meet, we’re seeing people deplete their savings, and even more concerningly, avoiding getting medical care. Other measures Americans are having to take, include pulling from their retirement savings, asking their family for financial support, opening more credit cards, and in some cases, defaulting on their loans,” Alev said.

When people are unable to keep up with the cost of living, they often take on debt to afford everyday expenses, Alev tells Reckon that more than half of Americans have taken on debt because of the cost of living creep.

“Another 59% [of respondents] say because of elevated interest rates, it feels impossible to pay down debt they’ve accumulated. This is having a negative impact on people’s ability to save money, pay down debt, and afford everyday necessities, like food and rent,” Alev told Reckon.

With the majority of Americans feeling like their money doesn’t go as far as it did, according to the survey, nearly a quarter of respondents felt as if they needed an additional $500-$999 per month to afford the same standard of living they did three years ago.

Needing more money to afford the same living expenses, also means wages aren’t keeping up with the cost of living.

A 2023 report on pay trends from ZipRecruiter showed almost half of United States employers have reduced pay for certain roles over the past year. This contributes to low and stagnant wages, making the number of Americans experiencing the cost of living creep higher.

Read more: How to spot wage theft tricks and what to do if you think your employer is stealing from you

Regardless of whether Intuit Credit Karma survey respondents have seen their income increase, more than half say that their salaries or wages have failed to keep pace with the cost of living.

This is an issue many employers can fix.

Alev says this is what employers and corporations can do to mitigate the impact of the cost of living creep on people’s lives:

“As Americans adapt to a new normal where their money doesn’t go as far as it once did, employers and corporations can prioritize fair wages, benefits packages and growth opportunities within their companies.”