{"id":463,"date":"2021-12-06T20:14:49","date_gmt":"2021-12-06T21:14:49","guid":{"rendered":"http:\/\/marshalllodge.co.uk\/?p=463"},"modified":"2024-09-26T15:12:51","modified_gmt":"2024-09-26T15:12:51","slug":"personal-finance-facts-and-statistics","status":"publish","type":"post","link":"http:\/\/marshalllodge.co.uk\/index.php\/2021\/12\/06\/personal-finance-facts-and-statistics\/","title":{"rendered":"Personal Finance Facts and Statistics"},"content":{"rendered":"<p>It\u2019s often said that \u201cnumbers don\u2019t lie.\u201d If so, what does that reveal about personal finance in the USA? To answer that question, we\u2019ve prepared this analysis of personal finance facts and statistics to help you understand approximately where you are in comparison with other Americans.<\/p>\n<p>The information revealed in our analysis isn\u2019t intended to make you feel insecure in any way. Instead, it\u2019s designed to help set parameters that will enable you to see how you are doing and to make improvements where you believe it\u2019s necessary.<\/p>\n<p><em>We hope you like numbers because we have plenty of them!<\/em> They\u2019re a necessary evil, and they go with the territory when it comes to <a href=\"https:\/\/www.goodfinancialcents.com\/7-personal-finance-lessons-wish-everyone-learned-high-school\/\" data-wpel-link=\"internal\" rel=\"noopener\">personal finance<\/a>. We\u2019re going to present statistics concerning multiple topics relating to income, debt, <a href=\"https:\/\/www.goodfinancialcents.com\/ways-to-save-money\/\" data-wpel-link=\"internal\" rel=\"noopener\">savings<\/a> and <a href=\"https:\/\/www.goodfinancialcents.com\/how-to-make-a-budget-that-actually-works\/\" data-wpel-link=\"internal\" rel=\"noopener\">budgeting<\/a>, and <a href=\"https:\/\/www.goodfinancialcents.com\/financial-planning-basics\/\" data-wpel-link=\"internal\" rel=\"noopener\">financial planning<\/a>.<\/p>\n<div class=\"gfc-table-of-contents gfc-table-of-contents-blockwrap gfc-blockwrap\">\n<div class=\"gfc-table-of-contents-title-container\">\n<h3>Table of Contents<\/h3>\n<\/div>\n<div class=\"gfc-table-of-contents-content\t-container\">\n<ul>\n<li><a href=\"#income-statistics\">Income Statistics<\/a><\/li>\n<li><a href=\"#expenses-and-debt-the-american-financial-burden\">Expenses and Debt: The American Financial Burden<\/a><\/li>\n<li><a href=\"#savings-and-financial-planning-are-americans-prepared\">Savings and Financial Planning: Are Americans Prepared?<\/a><\/li>\n<li><a href=\"#the-bottom-line-personal-finance-facts-and-statistics\">The Bottom Line \u2013 Personal Finance Facts and Statistics<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\">Income Statistics<\/h2>\n<h3 class=\"wp-block-heading\">Median Household Income<\/h3>\n<p>The median household income nationwide is $79,900. However, there is a wide variation between the individual states. The following median household income statistics are provided by the<strong> <\/strong><a href=\"https:\/\/www.huduser.gov\/portal\/datasets\/il\/il22\/Medians-FY22-Notice.pdf\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>U.S. Department of Housing and Urban Development<\/strong><\/a> as of April 18, 2022:<\/p>\n<figure class=\"wp-block-table aligncenter\">\n<table>\n<thead>\n<tr>\n<th><strong>State<\/strong><\/th>\n<th><strong>Median Household Income<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Alabama<\/td>\n<td>$73,600<\/td>\n<\/tr>\n<tr>\n<td>Alaska<\/td>\n<td>$102,200<\/td>\n<\/tr>\n<tr>\n<td>Arizona<\/td>\n<td>$82,800<\/td>\n<\/tr>\n<tr>\n<td>Arkansas<\/td>\n<td>$69,400<\/td>\n<\/tr>\n<tr>\n<td>California<\/td>\n<td>$101,600<\/td>\n<\/tr>\n<tr>\n<td>Colorado<\/td>\n<td>$105,800<\/td>\n<\/tr>\n<tr>\n<td>Connecticut<\/td>\n<td>$112,600<\/td>\n<\/tr>\n<tr>\n<td>Delaware<\/td>\n<td>$96,900<\/td>\n<\/tr>\n<tr>\n<td>District of Columbia<\/td>\n<td>$144,800<\/td>\n<\/tr>\n<tr>\n<td>Florida<\/td>\n<td>$79,300<\/td>\n<\/tr>\n<tr>\n<td>Georgia<\/td>\n<td>$83,200<\/td>\n<\/tr>\n<tr>\n<td>Hawaii<\/td>\n<td>$107,200<\/td>\n<\/tr>\n<tr>\n<td>Idaho<\/td>\n<td>$80,400<\/td>\n<\/tr>\n<tr>\n<td>Illinois<\/td>\n<td>$97,600<\/td>\n<\/tr>\n<tr>\n<td>Indiana<\/td>\n<td>$82,100<\/td>\n<\/tr>\n<tr>\n<td>Iowa<\/td>\n<td>$86,900<\/td>\n<\/tr>\n<tr>\n<td>Kansas<\/td>\n<td>$87,800<\/td>\n<\/tr>\n<tr>\n<td>Kentucky<\/td>\n<td>$73,600<\/td>\n<\/tr>\n<tr>\n<td>Louisiana<\/td>\n<td>$72,400<\/td>\n<\/tr>\n<tr>\n<td>Maine<\/td>\n<td>$84,800<\/td>\n<\/tr>\n<tr>\n<td>Maryland<\/td>\n<td>$117,500<\/td>\n<\/tr>\n<tr>\n<td>Massachusetts<\/td>\n<td>$120,400<\/td>\n<\/tr>\n<tr>\n<td>Michigan<\/td>\n<td>$84,200<\/td>\n<\/tr>\n<tr>\n<td>Minnesota<\/td>\n<td>$104,000<\/td>\n<\/tr>\n<tr>\n<td>Mississippi<\/td>\n<td>$65,000<\/td>\n<\/tr>\n<tr>\n<td>Missouri<\/td>\n<td>$81,700<\/td>\n<\/tr>\n<tr>\n<td>Montana<\/td>\n<td>$81,200<\/td>\n<\/tr>\n<tr>\n<td>Nebraska<\/td>\n<td>$89,000<\/td>\n<\/tr>\n<tr>\n<td>Nevada<\/td>\n<td>$84,600<\/td>\n<\/tr>\n<tr>\n<td>New Hampshire<\/td>\n<td>$108,000<\/td>\n<\/tr>\n<tr>\n<td>New Jersey<\/td>\n<td>$117,500<\/td>\n<\/tr>\n<tr>\n<td>New Mexico<\/td>\n<td>$68,700<\/td>\n<\/tr>\n<tr>\n<td>New York<\/td>\n<td>$99,500<\/td>\n<\/tr>\n<tr>\n<td>North Carolina<\/td>\n<td>$80,100<\/td>\n<\/tr>\n<tr>\n<td>North Dakota<\/td>\n<td>$96,800<\/td>\n<\/tr>\n<tr>\n<td>Ohio<\/td>\n<td>$83,300<\/td>\n<\/tr>\n<tr>\n<td>Oklahoma<\/td>\n<td>$76,000<\/td>\n<\/tr>\n<tr>\n<td>Oregon<\/td>\n<td>$91,800<\/td>\n<\/tr>\n<tr>\n<td>Pennsylvania<\/td>\n<td>$90,100<\/td>\n<\/tr>\n<tr>\n<td>Rhode Island<\/td>\n<td>$99,300<\/td>\n<\/tr>\n<tr>\n<td>South Carolina<\/td>\n<td>$78,400<\/td>\n<\/tr>\n<tr>\n<td>South Dakota<\/td>\n<td>$85,400<\/td>\n<\/tr>\n<tr>\n<td>Tennessee<\/td>\n<td>$77,800<\/td>\n<\/tr>\n<tr>\n<td>Texas<\/td>\n<td>$85,300<\/td>\n<\/tr>\n<tr>\n<td>Utah<\/td>\n<td>$95,800<\/td>\n<\/tr>\n<tr>\n<td>Vermont<\/td>\n<td>$92,800<\/td>\n<\/tr>\n<tr>\n<td>Virginia<\/td>\n<td>$103,900<\/td>\n<\/tr>\n<tr>\n<td>Washington<\/td>\n<td>$105,300<\/td>\n<\/tr>\n<tr>\n<td>West Virginia<\/td>\n<td>$67,700<\/td>\n<\/tr>\n<tr>\n<td>Wisconsin<\/td>\n<td>$91,000<\/td>\n<\/tr>\n<tr>\n<td>Wyoming<\/td>\n<td>$88,900<\/td>\n<\/tr>\n<tr>\n<td>US<\/td>\n<td>$90,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>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\u2019re among the 11.9% wealthiest households in the country.<\/p>\n<p>According to <a href=\"https:\/\/www.statista.com\/statistics\/203183\/percentage-distribution-of-household-income-in-the-us\/\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>Statista<\/strong><\/a>, the income distribution in the U.S. is as follows (for 2022):<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"lazyload\" data-src=\"https:\/\/www.goodfinancialcents.com\/wp-content\/uploads\/lh7-us.googleusercontent.com\/ouZJ0Oce_6whnXDpV_0R-feGFfW9Co7xRy9eO_03E_6dXbZg_oxWPc8yx-Re1sUQhJrz0AA3rYYB-2T7OfMlfHHE-8DP9MoCuG6DvdV90GVfvNDknjLcaArO2SiTGlWtzeuqvVkLu8LY4ML_pdlyPI0\"><\/figure>\n<\/div>\n<p>According to the<strong> <\/strong><a href=\"https:\/\/www.census.gov\/newsroom\/press-releases\/2023\/income-poverty-health-insurance-coverage.html#:~:text=The%20official%20poverty%20rate%20in,was%20significantly%20different%20from%202021.\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>U.S. Census Bureau<\/strong><\/a>, 11.5% of the population \u2013 or about 37.9 million people \u2013 were below the poverty line in 2022.<\/p>\n<p>According to the<a href=\"https:\/\/aspe.hhs.gov\/topics\/poverty-economic-mobility\/poverty-guidelines\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong> U.S. Office of the Assistant Secretary for Planning and Evaluation (ASPE)<\/strong><\/a>, the poverty line for 2023 is as follows (based on annual income by household size) for most of the country:<\/p>\n<ul class=\"wp-block-list\">\n<li>One person \u2013 $14,580<\/li>\n<li>Two people \u2013 $19,720<\/li>\n<li>Three people \u2013 $24,860<\/li>\n<li>Four people \u2013 $30,000<\/li>\n<li>Five people \u2013 $35,140<\/li>\n<li>Six people \u2013 $40,280<\/li>\n<li>Seven people \u2013 $45,420<\/li>\n<li>Eight people \u2013 $50,560<\/li>\n<\/ul>\n<p>Based on the table for \u201cMedian Household Income Per State\u201d provided by the U.S. Department of Housing and Urban Development in the first section above, the top five richest states in the USA are:<\/p>\n<ul class=\"wp-block-list\">\n<li>District of Columbia, $144,800<\/li>\n<li>Massachusetts, $120,400<\/li>\n<li>Maryland, $117,500<\/li>\n<li>New Jersey, $117,500<\/li>\n<li>Connecticut, $112,600<\/li>\n<\/ul>\n<p>Based on the table for \u201cMedian Household Income Per State\u201d provided by the U.S. Department of Housing and Urban Development in the first section above, the top five poorest states in the USA are:<\/p>\n<ul class=\"wp-block-list\">\n<li>Mississippi, $65,000<\/li>\n<li>West Virginia, $67,700<\/li>\n<li>New Mexico, $68,700<\/li>\n<li>Arkansas, $69,400<\/li>\n<li>Louisiana, $72,400<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\">Impact of Education on Earnings<\/h3>\n<p>Your level of education also significantly impacts your income. According to the<a href=\"https:\/\/www.bls.gov\/careeroutlook\/2023\/data-on-display\/education-pays.htm\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong> Bureau of Labor Statistics (BLS)<\/strong><\/a>, income per education level for 2022 is as follows:<\/p>\n<figure class=\"wp-block-table aligncenter\">\n<table>\n<thead>\n<tr>\n<th><strong>Education Level<\/strong><\/th>\n<th><strong>Mean Usual Weekly Earnings<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Professional Degree<\/td>\n<td>$2,083<\/td>\n<\/tr>\n<tr>\n<td>Professional Degree<\/td>\n<td>$2,080<\/td>\n<\/tr>\n<tr>\n<td>Master\u2019s Degree<\/td>\n<td>$1,661<\/td>\n<\/tr>\n<tr>\n<td>Master\u2019s Degree<\/td>\n<td>$1,432<\/td>\n<\/tr>\n<tr>\n<td>Bachelor\u2019s Degree<\/td>\n<td>$1,005<\/td>\n<\/tr>\n<tr>\n<td>Some College, No Degree<\/td>\n<td>$935<\/td>\n<\/tr>\n<tr>\n<td>High School Diploma, No College<\/td>\n<td>$853<\/td>\n<\/tr>\n<tr>\n<td>Less Than a High School Diploma<\/td>\n<td>$682<\/td>\n<\/tr>\n<tr>\n<td>Average for All Education Levels<\/td>\n<td>$1,341<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h3 class=\"wp-block-heading\">Earnings by Age Bracket<\/h3>\n<p>According to the U.S. Bureau of Labor Statistics, median earnings by age bracket are as follows (for the third quarter of 2023):<\/p>\n<figure class=\"wp-block-table aligncenter\">\n<table>\n<thead>\n<tr>\n<th><strong>Age Bracket<\/strong><\/th>\n<th><strong>Mean Usual Weekly Earnings<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>16 to 24<\/td>\n<td>$714<\/td>\n<\/tr>\n<tr>\n<td>25 to 34<\/td>\n<td>$1,040<\/td>\n<\/tr>\n<tr>\n<td>35 to 44<\/td>\n<td>$1,263<\/td>\n<\/tr>\n<tr>\n<td>45 to 54<\/td>\n<td>$1,272<\/td>\n<\/tr>\n<tr>\n<td>55 to 64<\/td>\n<td>$1,222<\/td>\n<\/tr>\n<tr>\n<td>65 and over<\/td>\n<td>$1,128<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\">Expenses and Debt: The American Financial Burden<\/h2>\n<h3 class=\"wp-block-heading\">Consumer Spending Patterns<\/h3>\n<p>Average annual consumer spending in the USA was $72,967 in 2022, according to the<a href=\"https:\/\/www.bls.gov\/news.release\/cesan.nr0.htm\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong> Bureau of Labor Statistics<\/strong><\/a>.<\/p>\n<p>The biggest individual category expenses were:<\/p>\n<ul class=\"wp-block-list\">\n<li>Housing, $24,298<\/li>\n<li>Transportation, $12,295<\/li>\n<li>Food, $9,343<\/li>\n<li>Personal insurance and pensions, $8,742<\/li>\n<li>Health, 5,850<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\">Reality of Consumer Debt<\/h3>\n<p>The state of consumer debt in the United States is both substantial and multifaceted, as indicated by statistics from the <a href=\"https:\/\/www.newyorkfed.org\/microeconomics\/hhdc\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">Federal Reserve Bank of New York<\/a> for the third quarter of 2023. <\/p>\n<p>The total consumer debt has reached a staggering $17.29 trillion, encompassing home mortgages, student loans, credit cards, and auto loans. Drilling down into these figures, the <a href=\"https:\/\/www.newyorkfed.org\/microeconomics\/hhdc\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">nation\u2019s credit card debt<\/a> accounts for $1.079 trillion of this total. <\/p>\n<p>On average, a family carries $6,120 in credit card debt, with 45.20% of American families having some level of credit card debt. The interest paid by the average American household on credit cards is a high <a href=\"https:\/\/www.lendingtree.com\/credit-cards\/credit-card-debt-statistics\/\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">22.77% annually<\/a>. <\/p>\n<p>This figure suggests a potential lack of awareness among consumers about the total interest they pay due to the complexity of <a href=\"https:\/\/www.goodfinancialcents.com\/understand-credit-myths-to-manage-your-credit\/\" data-wpel-link=\"internal\" rel=\"noopener\">managing multiple credit cards<\/a> and the fluctuating nature of balances and interest rates.<\/p>\n<div class=\"wp-block-gfc-custom-blocks-gfc-blue-callout-box-no-button-block container gfc-blue-callout-box-no-button-blockwrap gfc-blockwrap blue-callout-box-no-button-wrapper undefined wide\">\n<div class=\"row\">\n<div class=\"col-md-12 d-flex align-items-center justify-content-undefined\">\n<div class=\"blue-callout-box-no-button-wrapper\">\n<p class=\"blue-callout-box-no-button-message\">The issue of debt extends into the realm of transportation and education. Approximately 1.2 million car repossessions occurred in 2022, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-04-19\/inflation-high-car-prices-hurt-us-consumers-and-boost-repo-demand#xj4y7vzkg\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">as reported by Bloomberg<\/a>, typically within 90 days of a loan default. <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>On the education front, student loan debt has surged to a record<a href=\"https:\/\/www.lendingtree.com\/student\/student-loan-debt-statistics\/#:~:text=Americans%20own%20%241.77%20trillion%20in,is%20private%20student%20loan%20debt.\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"> $1.77 trillion <\/a>at the outset of 2023, with about 45.3 million students and graduates owing an average of nearly $30,000. Parent borrowers have taken on an average debt of $37,200 to finance their children\u2019s education.<\/p>\n<p>Bankruptcy also features prominently in the American financial landscape. Annually, <a href=\"https:\/\/www.uscourts.gov\/news\/2023\/07\/31\/bankruptcy-filings-rise-10-percent\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">418,724 Americans file for bankruptcy<\/a>, with personal bankruptcies constituting 403,000 of that number. <\/p>\n<p>Chapter 7 bankruptcies, which entail the liquidation of assets, accounted for 239,125 cases, signifying complete insolvency. The remaining 173,362 were Chapter 13 bankruptcies, often involving reorganization and installment plan settlements. <\/p>\n<p>These figures provide a stark illustration of the financial challenges facing many Americans.<\/p>\n<h2 class=\"wp-block-heading\">Savings and Financial Planning: Are Americans Prepared?<\/h2>\n<h3 class=\"wp-block-heading\">Savings and Emergency Funds<\/h3>\n<p>Recent surveys and financial reports shed light on the state of American savings and budgeting behaviors, painting a somewhat concerning picture of the financial stability of many households. <\/p>\n<p><a href=\"https:\/\/www.statista.com\/chart\/20323\/americans-lack-savings\/\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">According to Statista<\/a>, as of the latest data, 12% of Americans have no savings at all, highlighting a significant portion of the population potentially vulnerable to financial emergencies. <\/p>\n<p>Further emphasizing this vulnerability, a <a href=\"https:\/\/www.cnbc.com\/2023\/10\/31\/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">2023 CNBC survey<\/a> revealed that 62% of Americans are living paycheck-to-paycheck. Alarmingly, this hand-to-mouth existence spans across income levels, including 10% of households with annual incomes exceeding $100,000.<\/p>\n<p>In terms of financial planning, <a href=\"https:\/\/www.nerdwallet.com\/article\/finance\/data-2023-budgeting-report#:~:text=Nearly%20three%2Dquarters%20of%20Americans,%25)%20have%20a%20monthly%20budget.\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">Nerdwallet reports<\/a> that only 74% of Americans maintain a budget, suggesting that a quarter of the population does not actively manage their spending against their income. <\/p>\n<p>This lack of financial oversight may contribute to the stark reality that fewer than half of Americans \u2014 <a href=\"https:\/\/www.nerdwallet.com\/article\/banking\/data-2023-savings-report#:~:text=Less%20than%20half%20(45%25),a%20retirement%2Dspecific%20savings%20account.\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">under 45%<\/a> \u2014 have sufficient savings to cover an unforeseen $1,000 expense. <\/p>\n<p>Instead of having a financial cushion, many would turn to credit cards, personal loans, or family and friends for financial assistance in such scenarios. The consequences of these precarious financial practices become further evident in the amount Americans pay in overdraft fees. <\/p>\n<p>In 2022, individuals paid out $7.72 billion in such fees, with the burden primarily falling on those already identified as financially vulnerable, <a href=\"https:\/\/www.consumerfinance.gov\/data-research\/research-reports\/data-spotlight-overdraft-nsf-revenue-in-q4-2022-down-nearly-50-versus-pre-pandemic-levels\/full-report\/\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">according to the Consumer Financial Protection Bureau<\/a>.<\/p>\n<p>When examining the average savings per American family, there\u2019s a vast discrepancy at the state level. <a href=\"https:\/\/www.forbes.com\/advisor\/banking\/savings\/american-savings-statistics\/#:~:text=Excluding%20retirement%20assets%2C%20the%20average%20American%20has%20%2465%2C100%20in%20personal%20savings%2C%20according%20to%20a%202023%20Financial%20Planning%20%26%20Progress%20study%20from%20Northwestern%20Mutual.\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">As of 2023<\/a>, the national average savings stood at $65,100. <\/p>\n<p>However, this average does not reflect the financial health of all states, with Arkansas averaging the lowest at $1,664 and the District of Columbia the highest at $2,806, suggesting significant regional disparities in economic well-being.<\/p>\n<h3 class=\"wp-block-heading\">Retirement Preparedness<\/h3>\n<p>The landscape of retirement savings in the United States varies considerably by age, as detailed in the <a href=\"https:\/\/www.federalreserve.gov\/publications\/files\/2022-report-economic-well-being-us-households-202305.pdf\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\">2022 Federal Reserve data<\/a>. The median retirement savings for American households stands at $87,000. <\/p>\n<p>However, when these figures are broken down by age, it becomes evident that younger Americans, specifically those under the age of 35, are at a different stage in their retirement planning, with a median savings of $18,800.<\/p>\n<p>The benchmarks for how much an individual should have saved for retirement by specific age brackets are not universally fixed and tend to be somewhat subjective. The general guidance is predicated on one\u2019s current income, presuming it is adequate to manage living expenses comfortably. <\/p>\n<p>This income is then multiplied by a certain factor intended to result in a sufficient nest egg by the time one retires at age 65. For instance, by the age of 40, it is suggested that one should have saved approximately 1.5 to 2.5 times their current annual salary. <\/p>\n<p>As individuals progress through different age brackets, the recommended savings multiplier increases to ensure that retirement savings grow in proportion to the approach of retirement age.<\/p>\n<h4 class=\"wp-block-heading\"><strong>American Financial Landscape: A Comprehensive Overview of Savings, Budgeting, and Retirement Preparedness<\/strong><\/h4>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th><strong>Topic<\/strong><\/th>\n<th><strong>Statistics<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Savings Snapshot<\/strong><\/td>\n<td>\u2022 12% of Americans Have No Savings<br \/>\u2022 62% of Americans Live Paycheck-to-Paycheck, Regardless of Income Levels<\/td>\n<\/tr>\n<tr>\n<td><strong>Budgeting Habits<\/strong><\/td>\n<td>\u2022 Only 74% of Americans Maintain a Budget<br \/>\u2022 Less Than 50% of Americans Have Sufficient Savings to Cover an Unforeseen $1,000 Expense<\/td>\n<\/tr>\n<tr>\n<td><strong>Emergency Fund Reality<\/strong><\/td>\n<td>\u2022 Less Than Half of Americans (Under 45%) Have Enough Savings for a $1,000 Expense<br \/>\u2022 In 2022, Individuals Paid $7.72 Billion in Overdraft Fees, Primarily Affecting Those Identified as Financially Vulnerable<\/td>\n<\/tr>\n<tr>\n<td><strong>State-Level Savings Disparities<\/strong><\/td>\n<td>\u2022 National Average Savings: $65,100<br \/>\u2022 Arkansas Averages the Lowest at $1,664, While the District of Columbia Tops the List at $2,806, Indicating Significant Regional Disparities in Economic Well-Being<\/td>\n<\/tr>\n<tr>\n<td><strong>Retirement Savings Landscape<\/strong><\/td>\n<td>\u2022 Median Retirement Savings for American Households: $87,000<br \/>\u2022 Median Savings for Those Under 35: $18,800<br \/>\u2022 Recommended Savings Multiplier Increases With Age for Retirement Planning<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\">The Bottom Line \u2013 Personal Finance Facts and Statistics<\/h2>\n<p>The landscape of personal finance in the United States is as diverse as its population. Median household incomes fluctuate significantly across states, revealing a country of economic contrasts. <\/p>\n<p>Education continues to be a powerful determinant of earning potential, with higher levels of education correlating with increased income. However, despite reasonable earnings, many Americans are burdened with considerable debt and lack the savings necessary to weather financial emergencies. <\/p>\n<p>The state of retirement savings varies widely by age, emphasizing the need for early and consistent financial planning. The statistics presented underscore the importance of financial education and the development of robust personal financial management skills. <\/p>\n<p>They highlight both the challenges and opportunities that lie within managing personal finances, pointing to a need for individual responsibility and systemic solutions to support Americans in achieving financial stability and security.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.goodfinancialcents.com\/personal-finance-facts-and-statistics\/\" data-wpel-link=\"internal\">Personal Finance Facts and Statistics<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.goodfinancialcents.com\" data-wpel-link=\"internal\">Good Financial Cents\u00ae<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s often said that \u201cnumbers don\u2019t lie.\u201d If so, what does that reveal about personal&#8230;<\/p>\n","protected":false},"author":1,"featured_media":237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/463"}],"collection":[{"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=463"}],"version-history":[{"count":1,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/463\/revisions"}],"predecessor-version":[{"id":464,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/463\/revisions\/464"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/media\/237"}],"wp:attachment":[{"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=463"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/marshalllodge.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}