47% Faced a Financial Challenge in Past Year

Nearly half of American households (47 percent) headed by people aged 30 or older experienced an unexpected financial challenge in the past year, according to an AARP survey. Among households headed by Millennials and Gen Xers, the majority faced at least one such challenge. AARP defines an unexpected financial challenge as one that "caused a significant strain in your budget or your ability to pay your bills."

Percent experiencing at least one unexpected financial challenge in the past year
Millennials: 58%
Gen Xers: 54%
Boomers: 38%

Medical expenses were the number-one cause of financial challenges, cited by 33 percent. The median cost of a financial challenge was between $3,000 and $3,999. About half (51 percent) of those who experienced an unexpected financial challenge managed to get their finances back under control in less than 6 months. That's the good news. The bad news is that the 56 percent majority of those who faced a financial challenge experienced more than one.

Source: AARP,  Coping with an Unexpected Financial Challenge