Personal Finance Facts and Statistics

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If you're funny astir nan existent authorities of individual finance, our latest portion offers insightful facts and statistics. How mightiness these trends effect your financial decisions and early planning?

It’s often said that “numbers don’t lie.” If so, what does that uncover astir individual finance successful nan USA? To reply that question, we’ve prepared this study of individual finance facts and statistic to thief you understand astir wherever you are successful comparison pinch different Americans.

The accusation revealed successful our study isn’t intended to make you consciousness insecure successful immoderate way. Instead, it’s designed to thief group parameters that will alteration you to spot really you are doing and to make improvements wherever you judge it’s necessary.

We dream you for illustration numbers because we person plentifulness of them! They’re a basal evil, and they spell pinch nan territory erstwhile it comes to personal finance. We’re going to coming statistic concerning aggregate topics relating to income, debt, savings and budgeting, and financial planning.

Income Statistics

Median Household Income

The median family income nationwide is $79,900. However, location is simply a wide variety betwixt nan individual states. The pursuing median family income statistic are provided by the U.S. Department of Housing and Urban Development arsenic of April 18, 2022:

StateMedian Household Income
District of Columbia$144,800
New Hampshire$108,000
New Jersey$117,500
New Mexico$68,700
New York$99,500
North Carolina$80,100
North Dakota$96,800
Rhode Island$99,300
South Carolina$78,400
South Dakota$85,400
West Virginia$67,700

Have you ever wondered wherever your income falls among costs earners nationwide? For example, you whitethorn beryllium willing to cognize that if your family income is complete $200,000 per year, you’re among nan 11.9% wealthiest households successful nan country.

According to Statista, nan income distribution successful nan U.S. is arsenic follows (for 2022):

According to the U.S. Census Bureau, 11.5% of nan organization – aliases astir 37.9 cardinal group – were beneath nan poorness statement successful 2022.

According to the U.S. Office of nan Assistant Secretary for Planning and Evaluation (ASPE), nan poorness statement for 2023 is arsenic follows (based connected yearly income by family size) for astir of nan country:

  • One personification – $14,580
  • Two group – $19,720
  • Three group – $24,860
  • Four group – $30,000
  • Five group – $35,140
  • Six group – $40,280
  • Seven group – $45,420
  • Eight group – $50,560

Based connected nan array for “Median Household Income Per State” provided by nan U.S. Department of Housing and Urban Development successful nan first conception above, nan apical 5 richest states successful nan USA are:

  • District of Columbia, $144,800
  • Massachusetts, $120,400
  • Maryland, $117,500
  • New Jersey, $117,500
  • Connecticut, $112,600

Based connected nan array for “Median Household Income Per State” provided by nan U.S. Department of Housing and Urban Development successful nan first conception above, nan apical 5 poorest states successful nan USA are:

  • Mississippi, $65,000
  • West Virginia, $67,700
  • New Mexico, $68,700
  • Arkansas, $69,400
  • Louisiana, $72,400

Impact of Education connected Earnings

Your level of acquisition besides importantly impacts your income. According to the Bureau of Labor Statistics (BLS), income per acquisition level for 2022 is arsenic follows:

Education LevelMean Usual Weekly Earnings
Professional Degree$2,083
Professional Degree$2,080
Master’s Degree$1,661
Master’s Degree$1,432
Bachelor’s Degree$1,005
Some College, No Degree$935
High School Diploma, No College$853
Less Than a High School Diploma$682
Average for All Education Levels$1,341

Earnings by Age Bracket

According to nan U.S. Bureau of Labor Statistics, median net by property bracket are arsenic follows (for nan 3rd 4th of 2023):

Age BracketMean Usual Weekly Earnings
16 to 24$714
25 to 34$1,040
35 to 44$1,263
45 to 54$1,272
55 to 64$1,222
65 and over$1,128

Expenses and Debt: The American Financial Burden

Consumer Spending Patterns

Average yearly user spending successful nan USA was $72,967 successful 2022, according to the Bureau of Labor Statistics.

The biggest individual class expenses were:

  • Housing, $24,298
  • Transportation, $12,295
  • Food, $9,343
  • Personal security and pensions, $8,742
  • Health, 5,850

Reality of Consumer Debt

The authorities of user indebtedness successful nan United States is some important and multifaceted, arsenic indicated by statistic from nan Federal Reserve Bank of New York for nan 3rd 4th of 2023.

The full user indebtedness has reached a staggering $17.29 trillion, encompassing location mortgages, student loans, in installments cards, and car loans. Drilling down into these figures, nan nation’s in installments paper debt accounts for $1.079 trillion of this total.

On average, a family carries $6,120 successful in installments paper debt, pinch 45.20% of American families having immoderate level of in installments paper debt. The liking paid by nan mean American family connected in installments cards is simply a precocious 22.77% annually.

This fig suggests a imaginable deficiency of consciousness among consumers astir nan full liking they salary owed to nan complexity of managing aggregate in installments cards and nan fluctuating quality of balances and liking rates.

The rumor of indebtedness extends into nan realm of proscription and education. Approximately 1.2 cardinal car repossessions occurred successful 2022, as reported by Bloomberg, typically wrong 90 days of a indebtedness default.

On nan acquisition front, student indebtedness debt has surged to a record $1.77 trillion at nan outset of 2023, pinch astir 45.3 cardinal students and graduates owing an mean of astir $30,000. Parent borrowers person taken connected an mean indebtedness of $37,200 to finance their children’s education.

Bankruptcy besides features prominently successful nan American financial landscape. Annually, 418,724 Americans record for bankruptcy, pinch individual bankruptcies constituting 403,000 of that number.

Chapter 7 bankruptcies, which entail nan liquidation of assets, accounted for 239,125 cases, signifying complete insolvency. The remaining 173,362 were Chapter 13 bankruptcies, often involving reorganization and installment scheme settlements.

These figures supply a stark illustration of nan financial challenges facing galore Americans.

Savings and Financial Planning: Are Americans Prepared?

Savings and Emergency Funds

Recent surveys and financial reports shed ray connected nan authorities of American savings and budgeting behaviors, coating a somewhat concerning image of nan financial stableness of galore households.

According to Statista, arsenic of nan latest data, 12% of Americans person nary savings astatine all, highlighting a important information of nan organization perchance susceptible to financial emergencies.

Further emphasizing this vulnerability, a 2023 CNBC survey revealed that 62% of Americans are surviving paycheck-to-paycheck. Alarmingly, this hand-to-mouth beingness spans crossed income levels, including 10% of households pinch yearly incomes exceeding $100,000.

In position of financial planning, Nerdwallet reports that only 74% of Americans support a budget, suggesting that a 4th of nan organization does not actively negociate their spending against their income.

This deficiency of financial oversight whitethorn lend to nan stark reality that less than half of Americans — under 45% — person capable savings to screen an unforeseen $1,000 expense.

Instead of having a financial cushion, galore would move to in installments cards, individual loans, aliases family and friends for financial assistance successful specified scenarios. The consequences of these precarious financial practices go further evident successful nan magnitude Americans salary successful overdraft fees.

In 2022, individuals paid retired $7.72 cardinal successful specified fees, pinch nan load chiefly falling connected those already identified arsenic financially vulnerable, according to nan Consumer Financial Protection Bureau.

When examining nan mean savings per American family, there’s a immense discrepancy astatine nan authorities level. As of 2023, nan nationalist mean savings stood astatine $65,100.

However, this mean does not bespeak nan financial wellness of each states, pinch Arkansas averaging nan lowest astatine $1,664 and nan District of Columbia nan highest astatine $2,806, suggesting important location disparities successful economical well-being.

Retirement Preparedness

The scenery of status savings successful nan United States varies considerably by age, arsenic elaborate successful nan 2022 Federal Reserve data. The median status savings for American households stands astatine $87,000.

However, erstwhile these figures are surgery down by age, it becomes evident that younger Americans, specifically those nether nan property of 35, are astatine a different shape successful their status planning, pinch a median savings of $18,800.

The benchmarks for really overmuch an individual should person saved for status by circumstantial property brackets are not universally fixed and thin to beryllium somewhat subjective. The wide guidance is predicated connected one’s existent income, presuming it is capable to negociate surviving expenses comfortably.

This income is past multiplied by a definite facet intended to consequence successful a capable nest ovum by nan clip 1 retires astatine property 65. For instance, by nan property of 40, it is suggested that 1 should person saved astir 1.5 to 2.5 times their existent yearly salary.

As individuals advancement done different property brackets, nan recommended savings multiplier increases to guarantee that status savings turn successful proportionality to nan attack of status age.

American Financial Landscape: A Comprehensive Overview of Savings, Budgeting, and Retirement Preparedness

Savings Snapshot• 12% of Americans Have No Savings
• 62% of Americans Live Paycheck-to-Paycheck, Regardless of Income Levels
Budgeting Habits• Only 74% of Americans Maintain a Budget
• Less Than 50% of Americans Have Sufficient Savings to Cover an Unforeseen $1,000 Expense
Emergency Fund Reality• Less Than Half of Americans (Under 45%) Have Enough Savings for a $1,000 Expense
• In 2022, Individuals Paid $7.72 Billion successful Overdraft Fees, Primarily Affecting Those Identified arsenic Financially Vulnerable
State-Level Savings Disparities• National Average Savings: $65,100
• Arkansas Averages nan Lowest astatine $1,664, While nan District of Columbia Tops nan List astatine $2,806, Indicating Significant Regional Disparities successful Economic Well-Being
Retirement Savings Landscape• Median Retirement Savings for American Households: $87,000
• Median Savings for Those Under 35: $18,800
• Recommended Savings Multiplier Increases With Age for Retirement Planning

The Bottom Line – Personal Finance Facts and Statistics

The scenery of individual finance successful nan United States is arsenic divers arsenic its population. Median family incomes up and down importantly crossed states, revealing a state of economical contrasts.

Education continues to beryllium a powerful determinant of earning potential, pinch higher levels of acquisition correlating pinch accrued income. However, contempt reasonable earnings, galore Americans are burdened pinch sizeable indebtedness and deficiency nan savings basal to upwind financial emergencies.

The authorities of status savings varies wide by age, emphasizing nan request for early and accordant financial planning. The statistic presented underscore nan value of financial acquisition and nan improvement of robust individual financial guidance skills.

They item some nan challenges and opportunities that dishonesty wrong managing individual finances, pointing to a request for individual work and systemic solutions to support Americans successful achieving financial stableness and security.