Understanding Class Definitions

The definition of middle class has evolved and is determined by income brackets, with the Pew Research Center indicating that middle-class households earn between two-thirds and double the national median income. Based on current statistics, individuals earning below approximately $39,505 are classified as lower income, while those making over $118,456 enter the upper class. However, income alone does not define financial stability; people earning lower incomes can outpace higher earners financially through effective money management. Many individuals with substantial incomes face financial stress and live paycheck-to-paycheck, highlighting the importance of adapting spending habits to changing economic circumstances.