Personal Finance Statistics in America

Personal Finance Statistics in America

Let’s look at some personal finance statistics in America. I think this is a good eye opener and way for you to see where you stand. You don’t want to be another statistic so this could be some good motivation for you to get things going.

How many Americans use a real budget?

A poll done by Gallup found only about 1/3 of Americans (32%) use a household budget.

  • Only 30% of Americans have a long-term financial plan that includes savings and investment goals.
  • You’re most likely to budget if you make at least $75,000 per year

The average percentage of budget categories.

Here is a breakdown of what the average American spends their money on:

  • 32.9% goes towards housing.
  • 17% goes towards transportation.
  • 12.5% goes towards food.
  • 11.3% goes towards insurance.
  • 7.8% towards healthcare.
  • 5.1% on entertainment.
  • 3.3% on clothing.
  • 3.2% on cash contributions.
  • 2.3% on education.

Basically, 50% goes towards housing and transportation each year but as you can see, there is little going towards savings or an emergency fund.

Treading financial water

Digging deeper into that, 2017 report in MarketWatch found that half of American households currently live paycheck to paycheck.

  • 19% have $0 saved to cover emergency expenses; 31% have less than $500 in emergency savings
  • About 49% of Americans are concerned, anxious or fearful about their current financial well-being
  • Only 20% of people facing financial hardship fall below the poverty line making less than $40,000 per year

43% of student loan borrowers are not making payments.

  • 45,000,000 Americans have student loans totaling around $1.41 TRILLION.
  • The tuition costs at a public four-year college have increased by 213% over the last 30 years. In latest reports, student loan default rate has risen from 11.3% to 11.5%.

American credit card debt

The average American has $6,375 of credit card debt. Total credit card debt in the US has surpassed $1 trillion in 2017.

33% of American adults have $0 saved for retirement.

A total of about 56% of American adults have less than $10,000 saved for retirement. There are 33% who have nothing saved and then there are 23% who have only a small amount saved. There are obviously numerous factors to calculate what you will need for retirement and I will go into that more in a later post but old numbers said $1 million but newer reports and stats say that millennials should save as much as $1.8 million to $2.5 million depending on when they were born.

Personal finance statistics final thoughts

As you can see, personal finances are not America’s strong suit. We have a lot of room to work and improve our money. Luckily, with a bit of work and