The year 2020 has just started, yet it has presented us with many a challenge and turned our heads in the health, but also financial, direction. Are you already of the mind that you should have cared for your assets better? Well, if you haven’t been reading any personal finance statistics, chances are you didn’t take any reasonable action. Education is important and financial statistics can show us where we actually stand regarding our account balance, how to never-ever end up broke again, or whether we are using credit cards too much. Some major issues in America and the average American savings are also given here, as well as several easy ways of saving money.
All that and more in this article! Just check out the most interesting statistics:
Top 10 Personal Financial Statistics
- The average US consumer spends about $60,060 per year.
- Mississippi is the US state where citizens are most likely to have debt issues with their credit cards.
- 20% of credit reports have errors in them.
- Americans are trying to save more; as a result, the average American savings for the 401k plan were $106,000 in 2019.
- Only 7% of Americans believe they will die in debt, which is a record low.
- Personal finance statistics are very grim for students. They owe the highest amount ever recorded — $1.5 trillion.
- Millennials have less purchasing power than their parents used to have at the same age.
- $42 billion — this is how much parents of children under the age of five are spending on their kids.
- According to Federal Reserve statistics, the total consumer debt in America is $4.2 trillion.
- Limiting time on social media helps save money.
Don’t you already feel amazed? Go on and keep reading! Let’s start from the basics:
How Do We Feel About Our Personal Finance?
1. Personal finance statistics for 2020 started off as extremely positive with 59% of Americans stating they feel more confident about their finances.
That’s quite a rise, as last year 50% of the US was satisfied with their financial status. This year, it’s about six in ten US citizens who are more than happy, and this is the highest recorded result.
For comparison’s sake, the percentage was below 50% for the period 2001–2018.
2. 74% of Americans believe they will be better off in one year from now.
We’ll just have to wait and see what happens in 2020 with statistics for personal income.
3. American Democrats and Republicans have very different attitudes regarding their financial status.
While 76% of Republicans believe they are better off today than one year ago, only 43% of their opponents agree.
We can finally measure the difference in attitude between Democrats and Republicans about financial matters — it’s exactly 33%!
How Much Debt Does the Average American Have, and Why?
4. Household credit card debt equals $8,701 on average.
Credit card balances reached $930 billion in the last quarter of 2019, which was an increase of $46 billion from Q3.
5. Only 7% of Americans believe they will die in debt, which is a record low.
In 2019, this percentage was more than three times higher (25%), and 2018 statistics were even worse (30%). Something had happened that triggered positive feelings.
6. According to Federal Reserve debt statistics, the total consumer debt in America is $4.2 trillion.
(Lexington Law Firm)
This is the most recent figure from November 2019. Overall, car loans, student and personal loans, and other debts not related to mortgages take up about 10% of an American disposable income.
7. The median US household debt is $2,300.
What’s more, the average debt is $5,700.
The majority of Americans are always in some kind of debt. As expected, these are mostly mortgages and credit card debts.
8. How many Americans are in debt? Recent stats say 14% of Americans owe over $100,000.
However, that is the smallest percentage of people who are in debt. The largest proportion (33%) owes between $5,000 and $25,000, whereas 20% owes below $5,000.
9. Mississippi is the US state where citizens are most likely to have debt issues with their credit cards.
Southern states don’t really know how to use their credit cards in the best way possible. Millennials who have got low income and poor financial knowledge are especially vulnerable.
10. Personal finance statistics for 2019 are very grim for students. They owe the highest amount ever recorded — $1.5 trillion.
What is worse, over 50% of Millennials feel their college education simply was not worth being indebted to $29,800 when they graduated.
11. College tuitions are double what they used to be in the 1980s.
In practice, this translates to having a 300% larger student debt compared to baby boomers. Millennial financial statistics definitely don’t look optimistic from this angle.
While a millennial has to work 4,459 hours in order to pay off their college education, their parents had to fulfill mere 306 working hours!
12. 300 million Americans had some kind of debt in 2018.
Together they have a joint American household debt of $13.21 trillion.
Around 87% of families of people between 36 and 44 years old are indebted, which is the highest percentage recorded.
77% would be the percentage of Americans in debt who are 55 to 54 years old.
How Much Money Does the Average American Have Today?
13. 58% of Millennials have a balanced account of below $5,000.
So far, Millennials are absolutely the worst generation when it comes to average savings in the US and being independent. Their net worth is only $8,000 — the lowest score ever.
Most of them still depend on their parents for money, and the net worth of people between 18 and 35 has plummeted by 34% since 1996.
14. Average American savings by age report the median retirement savings for Americans in their 30s are $45,000 — almost three times more compared to their 20s.
Americans in their 20s have only $16,000 on average. This is hardly surprising if we bear in mind that some of them don’t start working until after college.
The biggest retirement savings of $172,000 belong to seniors in their 60s.
15. The biggest expenses come from the housing and transportation sector, personal budget statistics confirm.
People tend to spend 33% of their income on housing bills, and 16% on transport.
As for food expenses, it’s an interesting fact that 43% of the food budget was spent in restaurants, or on takeouts.
16. The latest spending stats tell us the average US consumer spends about $60,060 per year.
What could make a difference in your spending budget is the fact that the biggest spending changes took place in the education and entertainment sections. Here consumers spent 12% and 10% more, respectively.
17. Money statistics in America for 2019 say the median yearly income was $48,672.
This is excellent news as it entails a 4% increase compared to 2018. The figure refers to full-time workers (118.3 million Americans). Therefore, their weekly income is $936 for a 40-hour workweek.
If we bring seasonal adjustments into the picture, such as natural disasters, holidays, etc., that translates to $933, or $48,516.
Overall, this is a stark contrast compared to some other countries. Personal finance statistics for India in 2020 report that the average Indian salary was 32,200 INR ($430.88) per month.
18. Millennials have less purchasing power than their parents used to have at the same age.
It’s not just their spending habits nor the infamous tendency to postpone responsibilities. Essentially, one of the reasons is the renowned affordability crisis, which means that living expenses have gone up beside the salaries.
19. The median weekly earnings of a part-time worker are $284.
This too is a slight increase of 4.41% compared to the end of 2018 when the salary was $272.
At the moment, there are 24.2 million part-time workers in the US.
20. Saving money statistics report that when all bills are paid, only 18% of the income is left for savings and taxes.
Total spending leaves only 18% of the income for paying taxes and contributing to savings. According to one survey, only 41% of Americans respect their budget plans.
21. Asian full-time workers earn more than their white full-time colleagues.
It’s true! The median yearly earnings for Asian employees are about $60,632 per year ($1,166 per week).
On the other hand, white workers earn $50,284 per year ($967 per week).
All these financial statistics in America for 2019 are a stark contrast to the lowest group — Hispanic, or Latino, workers. They have a huge working population of 18.65 million, yet the yearly salary is just $37,024 ($712 per week).
22. Americans are trying to save more — hence why the average 401k plan was $106,000 in 2019.
That’s just $2,000 more compared to the same quarter last year. Two-thirds of the employed believe they need to be better educated regarding finance in order to be able to save more.
23. The average American savings in 2018 were about $175,510.
This is the figure for an average household and it includes different types of savings accounts.
Conversely, 29% of households had a shockingly low amount — less than $1,000!
24. 55% of Americans own some kind of stock.
If it hadn’t been for the 2007–2009 recession, the percentage would most likely be higher. What will happen with 2020 stocks remains to be seen.
The biggest percentage of stock-owning Americans was in the period 2001–2008. Back then, 62% of the population were stock owners.
25. Personal finance facts for parents should be improved. $42 billion — this is how much parents of children under the age of five are spending on their kids.
This includes early child care and preschool programs in 2020.
About 7 million households contribute to the amount. Basically, they spend about $500 each month, or $6,000 per year to cover child-related expenses.
Financial Planning Statistics and Tips
Finally, let’s see what you can immediately apply in practice:
26. If you make multiple payments to your credit card debt each month, you should be able to lower the interest cost.
When you pay the money to your card several times a month, that helps lower the debt. The same goes for paying your mortgage rate, in a similar way.
The interest rate is calculated according to the average daily balance, so this certainly helps.
27. One of the easiest ways to save money is to avoid products from eye-level shelves as they have the priciest products.
Personal budgeting statistics can be bettered even with simple knowledge.
This is a marketing technique that works wonders for the companies but takes money from consumers’ pockets.
If you check the bottom shelves in supermarkets, you’ll probably find a cheaper product of the same quality.
28. The “50-30-20” budget rule says you should dedicate 20% of your income to savings and investments.
Ideally, 50% should go to needs, such as mortgages, gas bills, utility bills, etc. Netflix is not a part of the equation. It belongs to the 30% category meant for the things that aren’t considered essentials, such as eating out.
How much does the average American have in savings in 2020? Reports say the above statistic is still true — $175,510.
29. Limiting time on social media helps save money.
In one survey, 57% of Millennials spent more than they had originally planned because they were inspired by social networks.
If you notice you’re prone to this too, try unfollowing some Instagram or other social accounts. That will probably make a change for the better.
30. $2,000 is the amount of money you need for emergencies.
This is the average amount, estimated by experts from the Federal Reserve Bank of New York.
$2,000 should be enough to help you deal with sudden financial blows.
31. Important personal finance statistics: check your credit reports regularly because 20% of them have errors.
If you’re among the 16% of Americans who never-ever check their credit reports, you might have paid more than you should have.
The main problem with this isn’t just the present, but your low credit score will definitely affect future loan possibilities.
So, how do you feel having read all the above? We’d like to think these are financial literacy statistics that will help you gain full control over your budget, savings, and spendings. You already know that in today’s age information is key in all areas. With these personal finance statistics, we’ve given you exactly that.
Now, it’s up to you to use them to your advantage!