personal finances

17 Personal Finance Statistics to Help You Start Saving

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Have you seen the Netflix series Dirty Money? If you have, we bet you assumed it’s based on a true story, keeping in mind the materialistic world we live in. 

As a matter of fact, we handle money on a daily basis. And yet, 43% of the respondents in a recent survey don’t know how much money their spouse is earning. 

Isn’t that shocking? 

Clearly, money is still a taboo topic that we avoid to talk about, even with our friends and family. So, it’s essential to educate ourselves about finance and go through the latest personal finance statistics.

The truth is: 

Not knowing how to deal with personal finances can be a source of stress and anxiety and lead to bankruptcy issues. That’s why securing financial stability is key to living a balanced life. 

What’s more: 

We can get a better insight into the most effective ways of handling our finances through the latest personal budgeting statistics. 

And once we’re aware of the average debt by age, average household debt, and similar fun financial facts, we can actually learn how to deal with our personal finances.

Let’s dive right in.

Fascinating Personal Finance Facts (Editor’s Choice)

  • The highest-earning age group is 45-54 year-olds. The lowest-earning income age group is 16 to 24 year-olds who are just entering the workforce.
  • The average American debt for 2020 is about $137,063 per household.
  • The average salary of men is about 19% higher than that of women. 
  • The average American household has savings of around $4,830.
  • About half of American families are living paycheck to paycheck. As a result, about 49% of employees are concerned and fearful about their financial stability.
  • According to personal budget statistics, households spend most of their money on food (56%) and dining out (44%).
  • In 2018, American debt statistics showed $1 trillion in credit card debt.

General Financial Statistics

1. On average, Asian-Americans earn $81,331 annually – way higher than other ethnic groups.

(Shift Processing)

While Asians are on the top of the scale when it comes to earning, Blacks seem to earn the lowest, which is an average of $40,258. Whites are earning an average of $68,145 yearly, and Hispanic people around $50,486.

2. Statistics for finance indicate that only about 24% of Millenials have a basic understanding of how to handle their finances.

(CNBC)

Additionally, just about 8% of Millenials have a good level of knowledge and understanding when it comes to handling their personal finance. According to experts, even though Millenials are highly educated, they are overconfident. 

So, they make mistakes in handling their finances. Clearly, they need to study the latest statistics and finance knowledge carefully.

3. Four out of ten workers have calculated how much they will need to retire.

(Ebri)

Only 42% of employees have tried to calculate how much money they would need in order to live out their golden years comfortably. The percentage is pretty low in comparison to the number of people who are trying to save money for retirement and those who are looking forward to retiring. 

In fact, statistics financial studies show that two-thirds of employees are saving for the days when they retire, and seven out of ten are excited about it.

American Financial Statistics

4. The state with the highest average income is Maryland, with $78,916 annually per household.

(Shift Processing)

When it comes to the US, the state in which people live can have a lot to do with the income they are earning and their ability to save some money. 

Here’s the deal:

People who live in Maryland may earn more but also have a higher cost of living. The US state with the lowest average income is Mississippi with $42,009 per household. 

The income per household, according to the average American financial statistics, refers to one- or two-income households.

5. About 33% of Americans haven’t saved even $1 for when they retire.

(Financial Wolves)

Another 23% have saved only minimal amounts of money. That means 56% of all Americans have saved no more than $10,000 for when they retire. 

While personal financial statistics show Americans would need around $1 million for retirement, the reality of the actual savings are alarming. In addition, it’s expected that Millennials will need anywhere from $1.8 to $2.5 million for retirement.

The Average Debt of an American

6. Debt statistics show that 38% of American households have credit card debt.

(Financial Wolves & Debt Organization)

The frequent use of credit cards in the US is the major reason for the great amount of average monthly debt payments. As a result, the average debt of a typical American family is about $137,063

Overall, many Americans seem to have a higher debt compared to their general income. Keeping in mind their credit card debt, it would take Americans around 10 years to clear the balance. Translated into interest rates, it equals over $16,695 per card. 

Which brings us to the next stat:

7. About 80% of Americans are in debt.

(Dave Ramsey & Pew Trusts)

Personal finance statistics show that eight out of ten Americans are in debt. So, if you were wondering how many Americans are in debt, we have to confirm that the numbers are pretty high. 

Now:

The numbers are striking mostly because of the belief Americans have when it comes to debt. In fact, seven out of ten people believe that being in debt is kind of necessary. This is the reason why many Americans are dragging their debt even into their retirement years. 

8. 21% of the total population has no savings of their yearly income.

(Financial Wolves)

In the US, every one in five residents isn’t sparing anything from their annual income. Even though the reason for it might be the higher prices and standard of living, that’s not the excuse. 

The fact that Americans can’t save money – including when shopping online – adds up to the great amount of credit debt they’re facing. It’s a vicious circle.

9. According to personal finance statistics 2017, a quarter of Americans were debt-free, which was up from 14% in 2015.

(CNBC & Consumer Affairs)

So, what percentage of America is debt free? 

As surveys and studies predict, by 2030, about 64% of Americans think they will be out of debt. For the quarter of Americans who were debt-free back in 2017, it mostly happened because they became more responsible when it comes to handling money. As a result, about 48% had less debt than their friends. 

10. About 31% of Americans haven’t set aside at least $500 in case of an unexpected emergency.

(Market Watch)

Finance statistics show that Americans are indeed living paycheck to paycheck and maybe spending more than they earn. 

What’s more:

Half of them don’t have any type of savings. This is the exact reason why around 49% of Americans are stressed out when it comes to money statistics. The financial facts indicate that an unexpected illness can put people on the verge of bankruptcy. 

11. The total consumer debt was approximately $14 trillion in Q2 2019 consumer debt statistics confirm.

(Debt Organization)

According to the New York Federal Reserve, debt has been steadily rising in recent years, including the four categories – auto, home, credit cards, and student loans. 

Here are the detailed stats for each field. 

  • Home – total debt of $9.4 trillion
  • Auto – total debt of $1.3 trillion
  • Credit Cards – total debt of $1 trillion
  • Student Loans – total debt of $1.48 trillion

This is huge! Let those numbers sink in for a minute…

12. Generation X has the highest credit card debt, while Generation Z has the lowest.

(Lend Edu)

How much credit card debt does the average American have?

Here’s the breakdown, by generation:

  • Generation X – $7,750
  • Baby Boomer – $7,550
  • Silent Generation – $4,613
  • Millennial – $4,315
  • Generation Z – $2,047

Personal Finance Statistics & Budgeting Statistics

thinking about personal finance statistics

13. Seven out of ten employees think workplace education and advice concerning personal finance statistics would be helpful.

(Ebri)

Workers need financial advice that will help them get out of debt, pay their student loans, and have some savings for the near future. More and more people are interested in handling their personal finances properly, and around 70% are seeking education in this matter. 

And that’s not all:

About 63% of employees would like to have access to budgeting education in order to get useful information about their day-to-day finances. When it comes to student loan debt assistance, about 45% of employees are interested in getting educated.

Good news!

14. According to personal finance facts, eight out of ten employees expect to get income from their retirement savings plan. 

(Ebri)

Compared to 2018, the findings of 2019 are pretty much the same when it comes to the expectations employees have about their retirement income. Additionally, about half of employees say their pension will be their major income when they retire. 

15. Financial planning statistics show that one in three Americans prepare a household budget.

(Gallup)

About 30% of Americans would sit down and write a detailed budget plan that includes investment goals and spending habits. 

Those who prepare household budgets tend to be better-educated individuals. They either do it on their own or seek professional help from online programs or financial advisors. 

Here’s the scoop:

The percentage of people who use online programs to do their personal finances is 32%, while 24% rely on financial planners or accountants. So, online programs tend to be more popular.

16. Statistics on budgeting show women budget better than men.

(PR News Wire)

97% of women claimed everyone should budget, compared to 90% of men. When budgeting comparisons are done by age, here is the outcome of the surveys:

  • 22-year-olds – about 50% use a budget
  • 23-to-38-year-olds – 74% use a budget
  • 39-to-54-year-olds – around 67% use a budget
  • 55 and higher – 67% use a budget

Key takeaway:

Budgeting is a very important factor in saving for retirement and staying out of debt. Click To Tweet

17. Singapore is the leading country in the world when it comes to saving money.

(Investopedia)

The savings rate of a country is calculated by the income that individuals get that doesn’t get spent. 

After Singapore, according to the saving money statistics, the countries that comprise the top ten are Suriname, China, Nepal, Philippines, Mauritania, Ireland, Republic of Korea, Bangladesh, and Switzerland.

Modern Finance Apps You Should Take Advantage of

Wallethub

Wallethub is a personal finance website that was launched as a personal finance social network. Users can check out reviews from financial advisors and interesting finance facts as well as use some tools along the way, such as Wallet Literacy Quiz and Financial Fitness Tool. This way, every member can get a credit report, monitoring, and scores.

NerdWallet

This app was created in 2009 with the purpose of assisting customers in their financial decisions. NerdWallet offers reviews for different financial products, including information about college loans, banking, credit cards, mortgage loans, insurance policies, and stock trading. 

SmartAsset

The motto of SmartAsset is to achieve your financial goals by finding the right financial advisor for you. This personal finance technology aims to provide credit scores and credit monitoring. As of 2014, SmartAsset has a free app for iOS and Android.

Wrap up

When it comes to personal finance statistics, we can clearly see that having a monthly budget is a very convenient option in order to keep track of our earning and spending ratio. 

Once we do all the calculations, we can start saving for emergency situations and for our golden years. 

So, how are you trying to save some money? By keeping a budget or taking advice from financial advisors?

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