October 25, 2023

How do you compare financially to Americans overall?

 Among U.S. families, 66% own their home, 58% own stocks, 54% have a retirement account, 45% have credit card debt and 35% have a car loan, according to the Fed's latest Survey of Consumer Finances.

Of course, no one is really average but the figures help you get an idea of where you stand. 

"Net worth. The typical (or “median”) net worth—meaning the value of all assets minus all debt for those American families halfway down the wealth spectrum—was $192,700 in 2022.  But the average (or “mean”) wealth, which measures America’s total net worth divided by all households, stood at $1,059,470. This is a classic example of skewness, with a small number of outliers—in this case, America’s wealthiest families—skewing the results higher."

Income. Skewness also shows up in pretax family income. As of the latest survey, the median (mid-point) household income was $70,260, while the average was twice as high, at $141,390. Houshold income is different from family income because households include singles whereas families are composed or two or more individuals which means the potential for two (or more) earners. 

Stocks. 58% of U.S. families were invested in the stock market, up from 48.9% nine years earlier. 

Real estate. 66% of families owned their primary residence, up from 63.7% six years earlier, but below the peak of 69% in 2004 (before the 2008 financial crisis).

Retirement accounts. 54.4% of families have a retirement account. Even in the age group where retirement accounts are most widespread—those ages 45 to 54—they’re held by just 62.2% of households. Those ages 65 to 74 had median retirement account balances of $200,000, enough to generate $670 in monthly income, assuming a 4% withdrawal rate.  

Credit cards.  When the data were collected... "credit card balances in inflation-adjusted terms are at their lowest levels since the 1990s. In 2022, 45.2% of families had card debt, down marginally from 2019, with a typical balance of $2,700 and an average balance of $6,120. Credit card debt is the most common form of debt, ahead of home loans, which 42.2% of families have, and car loans at 34.7%. Overall, 77.4% of families have some form of debt." However, the most recent data (mid-2023) show increases in the number of households with credit card debt and the amount of debt. 

Education loans. Roughly a fifth of families have student loans, with a typical balance of $24,500 and an average balance of $46,980.  

Thanks to Humble Dollar https://humbledollar.com/ blogger Jonathan Clements for this summary.  More details are available at: https://humbledollar.com/2023/10/by-the-numbers-2/?utm_source=mailpoet&utm_medium=email&utm_campaign=another-ses-test_7

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