Personal Finance Facts and Statistics

It’s often said that “numbers don’t lie”. If so, what does that reveal about personal finance in the USA? To answer that question, we’ve prepared this analysis of personal finance facts and statistics to help you understand approximately where you are in comparison with other Americans.

The information revealed in our analysis isn’t intended to make you feel insecure in any way. Instead, it’s designed to help set parameters that will enable you to see how you are doing and to make improvements where you believe it’s necessary.

We hope you like numbers because we have plenty of them! They’re a necessary evil, and they go with the territory when it comes to personal finance. We’re going to present statistics concerning multiple topics relating to income, debt, savings and budgeting, and financial planning.

Income

Median Household Income Per State

The median household income nationwide is $79,900. But there is a wide variation between the individual states. The following median household income statistics are provided by the US Department of Housing and Urban Development, as of April 1, 2021:

State Median Household Income
Alabama $66,700
Alaska $93,900
Arizona $73,200
Arkansas $60,700
California $90,100
Colorado $93,000
Connecticut $102,600
Delaware $83,000
District of Columbia $123,100
Florida $70,000
Georgia $74,700
Hawaii $99,800
Idaho $69,000
Illinois $85,000
Indiana $73,300
Iowa $79,500
Kansas $77,400
Kentucky $65,100
Louisiana $64,700
Maine $75,700
Maryland $106,000
Massachusetts $106,200
Michigan $75,300
Minnesota $93,100
Mississippi $60,000
Missouri $72,300
Montana $72,100
Nebraska $79,400
Nevada $75,100
New Hampshire $98,200
New Jersey $106,000
New Mexico $61,400
New York $87,100
North Carolina $70,900
North Dakota $90,100
Ohio $75,300
Oklahoma $67,000
Oregon $81,200
Pennsylvania $81,000
Rhode Island $88,000
South Carolina $68,700
South Dakota $75,500
Tennessee $68,600
Texas $75,100
Utah $85,300
Vermont $84,100
Virginia $93,000
Washington $91,600
West Virginia $60,300
Wisconsin $80,300
Wyoming $81,900
US $79,900

What Percent of People Represent the Highest Incomes in USA

Have you ever wondered where your income falls among wage earners nationwide? For example, you may be interested to know that if your household income is over $200,000 per year, you’re among the 10.3% wealthiest households in the country.

According to Statista, the income distribution in the US is as follows (for 2019):

How many Americans Live Below the Poverty Line?

According to the U.S. Census Bureau, 10.5% of the population – or about 34 million people – were below the poverty line in 2019.

According to the US Office of the Assistant Secretary for Planning and Evaluation (ASPE) the poverty line for 2019 is as follows (based on annual income by household size) for most of the country:

  • One person – $12,490
  • Two people – $16,910
  • Three people – $21,330
  • Four people – $25,750
  • Five people – $30,170
  • Six people – $34,590
  • Seven people – $39,010
  • Eight people – $43,430

Top 5 Richest States in the USA

Based on the table for “Median Household Income Per State” provided by the US Department of Housing and Urban Development in the first section above, the top five richest states in the USA are:

  • Massachusetts, $106,200
  • Maryland, $106,000
  • New Jersey, $106,000
  • Connecticut, $102,600
  • Hawaii, $99,800

Top 5 Poorest States in the USA

Based on the table for “Median Household Income Per State” provided by the US Department of Housing and Urban Development in the first section above, the top five poorest states in the USA are:

  • Mississippi, $60,000
  • West Virginia, $60,300
  • Arkansas, $60,700
  • New Mexico, $61,400
  • Louisiana, $64,700

Income Per Education Level

According to the Bureau of Labor Statistics (BLS), income per education level is as follows (for 2017):

Education Level Mean usual weekly earnings Annual earnings
Doctoral degree $1,743 $90,636
Professional degree $1,836 $95,472
Master’s degree $1,401 $72,852
Bachelor’s degree $1,173 $60,996
Associate’s degree $836 $43,472
Some college, no degree $774 $40,248
High school diploma, no college $712 $37,024
Less than a high school diploma $520 $27,040
Average for all education levels $907 $47,164

Median Earnings by Age Bracket

According to the US Bureau of Labor Statistics, median earnings by age bracket are as follows (for the second quarter of 2021):

Age Bracket Mean usual weekly earnings Annual earnings
16 to 24 $619 $32,188
25 to 34 $928 $48,256
35 to 44 $1,119 $58,188
45 to 54 $1,134 $58,968
55 to 64 $1,130 $58,760
65 and over $989 $51,428

Debt

Average Annual Consumer Spending in the USA

Average annual consumer spending in the USA was $63,036 in 2019, according to the Bureau of Labor Statistics.

The biggest individual category expenses were:

  • Housing, $20,679
  • Transportation, $10,742
  • Food, $8,169
  • Personal insurance and pensions, $7,165
  • Health, $5,193

Total Consumer Debt in the USA

Total consumer debt in the USA is $14.96 trillion. Those are the statistics issued by the Federal Reserve Bank of New York for the second quarter of 2021. That includes all forms of consumer debt, including home mortgages, student loans, credit cards, and auto loans.

Amount of Credit Card Debt in the USA

The amount of credit card debt in the USA is $807 billion. Average credit card debt per family is $6,270, and 45.4% of families carry some amount of credit card debt. (Source: Value Penguin)

How Many Americans Know How Much They are Paying in Credit Card Interest?

The average American household pays $1,045.55 in credit card interest each year. It’s entirely likely the average American has no solid idea how much he or she is paying, due to multiple credit cards, and the variable nature of both credit card balances and interest rates.

How Many Car Repossessions Happen Yearly in the USA

About 2 million car repossessions yearly in the USA (source: Etags.com). Vehicles are typically repossessed within 90 days of loan default (your last payment).

Total Amount of Student Loan Debt in the USA

The total amount of student loan debt in the USA is a record $1.71 trillion as of the beginning of 2021 (source: StudentLoanHero.com).

44.7 million students and graduates owe an average of nearly $30,000 in student loan debt. But student loan debts taken by parents for the benefit of their children averaged $37,200 per borrower.

How Many Americans File for Bankruptcy Each Year?

544,463 Americans file for bankruptcy each year, including 522,808 personal bankruptcies. The rest are business bankruptcies. (Source: US Courts.gov.)

Of the total, 378,953 were Chapter 7 bankruptcies, representing total and immediate bankruptcy. 156,377 were Chapter 13 bankruptcies, representing partial bankruptcies, largely settled through installment payments.

Savings and Budgeting

The Average Number of People with No Savings

45% of Americans have no savings at all (source: GOBankingRates).

How Many Americans Live Paycheck-to-Paycheck?

The information is a bit dated, but according to a survey conducted by CareerBuilder in 2017, 78% of Americans live paycheck-to-paycheck. This includes fully 10% of households with annual incomes of $100,000 or more.

How Many Americans Have a Budget?

Only 41% of Americans have a budget, according to LendEdu.com.

How Many Americans Have Enough in Their Savings to Cover a $1,000 Emergency?

Only 39% of Americans have enough money in their savings to cover a $1,000 emergency, according to a survey taken by Bankrate and released at the beginning of 2021. Most of the rest reported they would get the funds from credit cards, personal loans, or borrowing from family and friends.

Amount Paid by Americans in Overdraft Fees Yearly

Americans paid $11.8 billion in overdraft fees in 2020. Most of these fees were paid by individuals considered to be financially vulnerable. (Source: Forbes.)

Average Amount of Savings per American

The average amount of savings per American is $17,135, as of November 2020. That’s the national average, however state averages vary considerably. The average in West Virginia is $6,936 (the lowest), while the average in South Dakota is $24,497 (the highest).

Amount of Americans with Retirement Savings

50.5% of Americans have retirement savings, with an average balance of $65,000. This is according to information released by the Federal Reserve for 2019.

How Much Should You Have Saved for Retirement by Age Bracket?

How much you should have saved for retirement by age bracket is largely subjective. It’s based on your current income – assuming it’s sufficient to cover your living expenses – multiplied by a factor that’s likely to provide a sufficient amount of retirement savings by the time you reach age 65.

For example, by the time you’re 40, you should have between 1.5 and 2.5 times your current annual salary saved for retirement. But the amount you should have saved will increase with each age bracket.

The following table, provided by the investment firm T.Rowe Price provides solid guidance as to how much you should have saved for retirement at eight age brackets, ranging from 30 to 65:

The post Personal Finance Facts and Statistics appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Capital One Eliminates Overdraft Fees: Who’s Next?

Capital One has eliminated overdraft fees and non-sufficient fund fees for all of its consumer banking customers, making it the first major U.S. bank to do so. It joins a list of seven other smaller financial institutions that have already ditched overdraft fees and the question is now, will more big banks follow suit? No […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

Simple Is Shutting Down: Here Are 3 Best Alternatives

Online banking platform Simple is transitioning to BBVA in early May. Here’s what you need to know about your options as a Simple accountholder.Online banking platform Simple is transitioning to BBVA in early May. Here’s what you need to know about your options as a Simple accountholder.

The post Simple Is Shutting Down: Here Are 3 Best Alternatives appeared first on Money Under 30.

Source: moneyunder30.com

How to Throw a Bridal Shower on a Budget: A Guide for the Frugal Host

Between impressive floral arches and customized sugar cookies, throwing a picture-perfect bridal shower aimed at being a social media showstopper can be pricey.

CostHelper.com, a website that compares the cost of services, reports that a typical bridal shower can run from $15 to $40 per person for a luncheon or party in a private room at a mid-range restaurant. If you’re going all out with an elaborate bridal shower, you could be talking $40 to $150 or more (gasp!) per person. Even a small, elaborate bridal shower (think 15 guests) could cost between $600 and $2,250—and that’s before invitations, decorations and cake.

The good news is you can actually honor the bride and your budget at the same time. A bridal shower with simple refreshments at the host’s home, for example, can cost $10 to $15 or less per person, according to CostHelper.com. You just need to employ some creative tips for budget bridal showers to make the event more affordable.

What is the best way to plan a bridal shower on a budget? Follow these six tips as you prepare to shower the bride, and there’s a good chance you’ll have more fun and less financial stress:

1. Zero in on important goals

Before you even begin to plan a bridal shower on a budget, you need to know the goals upfront so you can understand where you should be investing your time and money. Sit down with the bride (or, if it’s a surprise, consult a friend or family member of the betrothed) and establish expectations and a budget to match.

Personal finance coach Emma Leigh Geiser shares her starting tip for budget bridal showers: “Plan an event that honors who the bride truly is and what you can provide, without sacrificing your financial well-being.”

Geiser, who helps women in their 20s and 30s with personal financial challenges, recommends learning what the bride envisions for her celebration and which traditions are most important to her. Be upfront about how much you can realistically afford to spend on the bridal shower, Geiser says. And don’t be shy about saying the bridal shower is your gift to the bride.

If the bride’s priority is to have her bridal shower at a high-priced restaurant, find creative ways to lower other costs to still plan a bridal shower on a budget. Bring your own cake to the venue, for example, exclude alcohol from the menu or keep the guest list small. If the bride is a foodie and wants guests to dine on gourmet dishes, you could spend most of the budget on a favorite caterer, but then consider hosting the event at someone’s home and doing minimal decor so budget isn’t needed elsewhere.

Finding out what's truly important to the bride can help you plan a bridal shower on a budget.

2. Delegate tasks

If you’re wondering how to throw a bridal shower on a budget, know that you don’t have to foot the entire cost of the party yourself. Consider co-hosting with the rest of the bridal party or one of the bride’s family members, or delegating specific tasks to willing volunteers.

When personal finance blogger Becky Beach had her bridal shower, catering was delegated to her sister-in-law. “She knows how to throw a bridal shower on a budget,” Beach says. Deputized to handle the food, her sister-in-law served inexpensive bites purchased from a wholesale club, including sausage-roll appetizers, crab cakes, apple crisp tartlets and cream puffs. (With this lineup, who needs a main meal?!)

Assigning smaller purchases to other bridesmaids and close family members is a good tip for budget bridal showers because it can make the overall cost of the event much more manageable for the host. For example, if you delegate tasks or items that cost $30 each to six people, you’ll save $180. Some popular responsibilities to dole out include:

  • Appetizers
  • Dessert
  • Drinks
  • Invitations
  • Favors
  • Games
  • Prizes for games

3. Let the theme choose you

You don’t have to necessarily come up with a theme first. Among the tips for budget bridal showers is to take inventory of what props or decorations are available to you for free. Do you know someone who threw a bridal shower and has leftover decor or favors? Perhaps a friend’s home decor items will fit the bill—like globes and vintage-inspired items, which can be transformed into an exotic travel theme.

If you're wondering how to throw a bridal shower on a budget, keep an eye out for decor items that can create a theme−not the other way around.

Even store clearance items can be repurposed to help dictate your theme’s direction. For example, a home decor or craft store might have steeply discounted artwork. The trick is to look past the art and focus on the frame, Beach says. Can you replace the artwork with a picture of the happy couple? Maybe you can remove the glass altogether, glue twine to the back and use it for hanging wedding wishes from the guests.

Learning how to throw a bridal shower on a budget becomes easier if you’re able to snag off-season items from a party or outdoor store—such as tiki lamps or beach house decorations—which could make for a wonderful fall island or Hawaiian theme.

When planning a bridal shower on a budget, don’t forget to ask friends and family members if you can borrow other party items, such as cake stands, vases and tablecloths. They might even have unopened gifts or stationery sets that you can use as prizes for games.

4. Do the invitations, games and decorations for less

Sending out mid-range traditional invitations by mail can cost $3 to $4 per guest, according to data from CostHelper.com. Invitation costs can add up quickly when you are trying to plan a bridal shower on a budget.

“Plan an event that honors who the bride truly is and what you can provide, without sacrificing your financial well-being.”

Emma Leigh Geiser, personal finance coach

If you’re open to skipping snail mail, you can leverage online invitation services that allow you to create your own designs and send to however many guests you’d like for free, Geiser says. You can easily save around $100 on invitations for a guest list of 30 by going the route of a free online invite. Some services may provide you templates to choose from, or they may include advertisements, but they do the trick nicely.

If you’re wondering how to throw a bridal shower on a budget and still keep guests entertained, search online for bridal shower games that can be printed for free or a nominal cost. You could also go the DIY route if you’re so inclined. For example, have guests try to guess what is in the bride’s purse—it’s even more fun if the bride doesn’t know this game will be played.

As far as decorating goes, focus your efforts on one area that will make the biggest impression. If the bridal shower is hosted in someone’s home, go all out decorating only one room. If the bridal shower is at a venue, like a restaurant, work on fancying up only one wall. Whether at a home or a venue, this area can serve as the focal point of the event and give the bride and guests the perfect spot for photos.

5. Make low-cost venues work

When you’re planning a bridal shower on a budget, opt for a low-cost venue that has built-in unique characteristics. “Choose a space that is its own fantastic backdrop,” Geiser says. She recommends a house with natural light and great landscaping in order to cut down on decorating costs.

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Hosting the party at a bride’s friend’s or family member’s home is ideal, since it would be free. “We all know at least one person who has a killer house; ask them if they wouldn’t mind hosting,” Geiser says. (Be sure to preview the site in advance of the bridal shower.) Another good choice: Apartment buildings and condos often have clubhouses or event rooms that can be used for free or rented for a nominal fee. See if any of your bride’s family or friends have access to these areas.

Other local resources can serve as low-cost venues when you’re working on how to throw a bridal shower on a budget. A park, for example, might have a nice garden or even an indoor space that could be used. Research your town’s online municipal pages for tips on how to secure local venues. Some sites might require a nominal fee, early bookings or have other restrictions, so work on booking a space as soon as you have a bridal shower date in mind.

6. Cut food costs by keeping things simple

Whether you are hosting the bridal shower at a restaurant or at someone’s home, schedule a morning brunch or appetizers and salads in the late afternoon when guests are in-between meals. Breakfast dishes, such as an egg casserole or French toast bake, can often cost less to make than a meat-centered entree, Beach adds.

Keeping food simple is a great tip when you're trying to plan a bridal shower on a budget.

If you are in charge of preparing food, stick with quick and easy options as a tip for budget bridal showers. “You don’t have to cook and create everything yourself,” Beach says. “There are so many beautifully crafted hors d’oeuvres you can get prepackaged.”

If you are hosting the bridal shower at a restaurant, ask if they offer a buffet option instead of sit-down catering: Choosing a buffet meal is typically about 30 to 50 percent cheaper than a sit-down meal, according to Eventective, which helps you find venues and event services.

If you’ve got your heart set on sit-down dining, narrow down the menu options in advance. You or the restaurant can make a simple printout of a few entree choices and not share full menus with guests. (Adding the bride’s name to the top of a personalized menu is also a nice touch.) In addition to being a tip for budget bridal showers, this strategy can also streamline the ordering and serving process so you have more time for games and opening gifts. Win-win!

Choosing a buffet meal is typically about 30 to 50 percent cheaper than a sit-down meal.

Eventective, special event and venue services

Keep track of the expenses when planning a bridal shower on a budget

You can master how to throw a bridal shower on a budget if you determine the guest-of-honor’s goals from the start. Another tip to remember when you plan a bridal shower on a budget is to track your expenses throughout the planning and hosting process to make sure you’re staying on budget.

If you are splitting costs with friends and family, remember to get reimbursed—preferably before the event, so you don’t have to worry about tracking people down to talk about business while celebrating.

As Geiser says, “What actually makes the event are the attendees, the conversation and the fun you create as a group celebrating the bride.”

The post How to Throw a Bridal Shower on a Budget: A Guide for the Frugal Host appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

9 Best Online Checking Accounts: Mobile Banking That Works

Bank digitally, skip maintenance fees, and even earn some cash rewards and interest yields with our top online checking accounts.Bank digitally, skip maintenance fees, and even earn some cash rewards and interest yields with our top online checking accounts.

The post 9 Best Online Checking Accounts: Mobile Banking That Works appeared first on Money Under 30.

Source: moneyunder30.com

Dear Penny: Can My Husband Stop His Brother From Stealing His Inheritance?

Dear Penny, My husband’s brother took their mother to his accountant to make sure her mutual funds, stocks and banking accounts were being taken care of and that nobody would be able to extort money from her. She is wealthy. The will stated everything was to be split equally, half and half.  She has two […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com