You're living in a "K-shaped" economy. Here's how that affects you.

To understand how Americans are faring economically these days, it's helpful to consider the eleventh letter of the alphabet.

Experts describe the current U.S. economy as "K-shaped," a reference to the divergent fortunes of wealthier consumers compared with people lower down the ladder. The upward-slanting stroke of the "K" represents the ongoing trend of strong spending and healthy income growth among upper-income Americans.

By contrast, the letter's lower-slanting stroke points to the multiple financial strains facing low- and middle-income people, from stubborn inflation and prohibitively expensive homes to surging credit card debt and high health insurance costs.

This bifurcation of the economy isn't a new phenomenon, with inequality on the rise since the 1980s, noted Mark Zandi, ch