Budgeting and Finance Statistics 2024: What You Need to Know

To make the most of your money, it is essential to be aware of how people save and consume. This blog post will provide up-to-date information on how Americans save and spend their money.

Understanding these trends allows you to make more informed financial decisions for yourself and your family. So, without further ado, let’s get started.

Latest budgeting and financial statistics

1: The average income for an American household in 2021 was $102,316. The median income for 2021 was 70,784 per household.

2: In 2022, 58 percent of adults in the United States invested in the stock market.

3: No. of American households with an income of below $25,000 is around 28%

4: The average spending for an American household in 2021 was $66,928. This can be broken down into the following major budgeting categories:

• Food: $8,289
• Housing: $22,624
• Utilities, fuels, and public services: $4,158
• Transportation: $10,961
• Healthcare: $5,452
• Entertainment: $3,568
• Education: $1,226

5: 59% of American employees live paycheck to paycheck.

6: 18% of employees making more than $100,000 annually live paycheck to paycheck

7: Only 32% of U.S. households prepare a monthly budget

8: 29.% of Americans don’t save any of their income.

9: The average net worth for American families in 2019 was $748,800 but the median net worth for American families in 2019 was $121,760.

The fact that the average net worth for American families in 2019 was significantly higher than the median net worth suggests that there is a significant amount of wealth inequality in the United States.

The average net worth is influenced by the values of all the net worths in a given population, including those of the very wealthy, while the median net worth is the value that falls in the middle of a given population, with an equal number of people having net worths above and below it.

In other words, the average net worth is influenced by the values of the highest net worth in a population, while the median net worth is a better representation of the net worth of the “typical” or middle-class household.

In this case, the fact that the average net worth is much higher than the median net worth suggests that there are a relatively small number of very wealthy households that are skewing the overall average upwards, while the majority of households have net worths that are closer to the median value. This indicates a high degree of wealth inequality in the United States.

How much do Americans save?

10: In January 2022, the Federal Reserve reported that Americans were sustaining an average personal savings rate of 6.4%. This is less than recommended 10%.

11: Only 39% of Americans had enough savings to cover a $1,000 emergency

12: the average household savings balance is $41,600, and the median is just $5,300

13: Average savings by age are:

• Below 35: $11,200
• 35-44: $27,900
• 45-64: $48,200
• 55-64: $57,800
• 65-74: $60,400
• 75+: $55,600

14: A shocking two-thirds of millennials are behind on their retirement savings due in large part to the burden of rising housing costs.

15: An astounding 28% of retirees are currently employed for pay, whereas an optimistic 80% anticipate that they will be able to continue their employment during retirement.

16: Over 40% of Americans have less than $10,000 saved for when they retire

17: Only a quarter of millennials demonstrate basic financial literacy according to the National Endowment for Financial Education’s recent study.

18: Only 30% of the American population has a long-term financial plan.

These statistics indicate that many Americans are struggling with financial stability and planning for the future. The average personal savings rate of 6.4% is lower than the recommended amount, and only 39% of Americans have enough savings to cover a $1,000 emergency.

Additionally, the average household savings balance is relatively low, with the median being just $5,300, and many people, particularly millennials, are behind on their retirement savings due to rising housing costs.

Moreover, over 40% of Americans have less than $10,000 saved for retirement, and only a quarter of millennials demonstrate basic financial literacy. Overall, these statistics suggest that there is a need for greater financial education and resources to help Americans improve their financial stability and planning for the future.

How much debt does the average American have?

19: The average debt for American adults is $23,325

20: The Federal Reserve reported that U.S. household debt skyrocketed to an all-time high of $16.90 trillion in the last quarter of 2022, a sign that American consumers are taking on more long-term obligations than ever before.

21: Americans are shouldering a staggering $1.54 trillion in student loan debt, creating an unprecedented financial burden for millions of individuals and families.

22: During the fourth quarter of 2019, 202,000 consumers were added to credit reports with bankruptcy notations.

23: The U.S. is over $30.93 trillion in debt.

24: On average, 30% of American adults’ income goes towards paying off debt

25: Generational statistics show that Generation X holds the top spot when it comes to average credit card debt, surpassing any other generation.

26: Generation Z consumers have an average credit card balance of $1,963

27: On average, Americans are carrying a hefty mortgage of over $171,000 and the monthly payments for this amount are usually more than $1,000.

28: 44% of American adults depend on an auto loan to pay for their car.

These statistics highlight the significant levels of debt faced by many Americans. The average debt for American adults is $23,325, and the total U.S. debt is over $30 trillion. Americans are also facing a particularly heavy burden of student loan debt, which is currently at $1.54 trillion.

Additionally, many Americans are taking on long-term obligations such as mortgages and auto loans, with the average mortgage amount being over $171,000 and 44% of American adults depending on an auto loan to pay for their car.

These high levels of debt can create financial strain and make it difficult for individuals and families to save for the future.

Retirement Statistics

29: 45.5 percent of Americans have $0 saved for retirement

30: 19% of Americans anticipate retiring with less than $10,000 in savings.

31: An impressive 6% of Baby Boomers have amassed a retirement fund ranging from $500,000 to a whopping $1 million!

32: The typical 401k annual contributions of plan participants added up to a mere $8,788.

These statistics suggest that many Americans are not adequately preparing for retirement. A significant portion of the population, 45.5%, has not saved any money for retirement, and 19% of Americans expect to retire with less than $10,000 in savings.

While a small percentage of Baby Boomers have been able to save substantial amounts for retirement, the typical 401k annual contribution is relatively low at just $8,788. These statistics indicate a need for Americans to prioritize saving for retirement and to seek out resources and advice on how to effectively plan for their financial future

How can these trends be used to make more informed financial decisions?

By understanding the average income, spending, and saving habits of American households, as well as the levels of debt and financial literacy among different age groups, individuals can gain insight into their own financial situation and make more informed decisions about how to manage their money.

For example, knowing that the average debt for American adults is $23,325 and that many people are struggling to save for retirement can help individuals prioritize paying off debt and building up their savings.

Understanding the major budgeting categories, such as housing and transportation, can help individuals make more informed decisions about how to allocate their income.

By being aware of the financial challenges faced by many Americans, individuals can take steps to improve their own financial stability and planning for the future.

How can Americans make the most of their money?

There are several steps that Americans can take to make the most of their money:

Create a budget: One of the most important steps in managing your money is creating a budget. This can help you understand where your money is going and identify areas where you can cut back or save more. You can start with a budgeting app or even use a spreadsheet to track your income and expenditure.

Pay off debt: High levels of debt can be a financial burden and limit your ability to save and invest. Consider paying off high-interest debt, such as credit card debt, as a priority.

Save and invest: Building up your savings and investing for the future can help you achieve financial security and reach your long-term financial goals. Consider setting aside a portion of your income each month for savings and investing in a diversified portfolio of assets.

Seek financial education and advice: Improving your financial literacy and seeking advice from financial professionals can help you make more informed financial decisions and achieve your goals.

Plan for unexpected expenses: Unexpected expenses, such as emergencies or unexpected bills, can derail your financial plans. Consider setting aside money in a rainy day fund to cover these types of expenses.

Take advantage of employer benefits: Many employers offer benefits such as 401k plans, which can help you save for retirement and potentially receive employer contributions. Consider taking advantage of these benefits to help you save more for the future.