Are most Americans financially stable?
At the end of 2022, 73 percent of adults were doing at least okay financially, meaning they reported either "doing okay" financially (39 percent) or "living comfortably" (34 percent).
Bankrate's survey highlights that 72 percent of Americans don't feel financially secure, with only 28 percent claiming complete financial security. High inflation rates, the broader economic landscape and rising interest rates are pinpointed as major hurdles.
The COVID-19 pandemic sent a painful shockwave through both the US and the global economy.
More than half of Americans (58%) report being able to live within their means and not worry about making ends meet, while fewer than half (40%) feel they are in good or great financial shape, and one in four (23%) say they are in poor shape.
By the numbers: 63% of Americans rate their current financial situation as being "good," including 19% of us who say it's "very good." Neither number is particularly low: They're both entirely in line with the average result the past 20 times Harris Poll has asked this question.
A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.
By just about any measure, earning $80,000 a year is a good salary. It's about $5,000 higher than the U.S. median household income, per Census data.
But despite the larger pressures, they're not satisfied with their situation; 57% of respondents said the current state of their savings is stressing them out. Nearly one in four (22%) of U.S. adults have no emergency savings at all, Bankrate found—the second-lowest percentage in 13 years of polling.
Average Net Worth of an American Family
Both median and average family net worth surged between 2019 and 2022, according to the U.S. Federal Reserve. Average net worth increased by 23% to $1,063,700, the Fed reported in October 2023, the most recent year it published the data.
Key Takeaways. Wealth and income for U.S. households hit record highs in 2022, even after accounting for inflation, according to a landmark Federal Reserve survey. Despite the data, numerous polls show many people consider themselves worse off than before the pandemic.
Are Americans living paycheck to paycheck?
More than 60% of Americans live paycheck to paycheck as of September 2023, according to a LendingClub report. Even people in higher income brackets are affected. More than half of Americans earning over $100,000 a year live paycheck to paycheck.
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
The median household income in the U.S. is just under $75,000, so it makes sense that the largest proportion of those surveyed (45%) said that it's possible to be financially stable by earning between $50,000 and $100,000 a year.
As living expenses in the U.S. continue to rise and wages struggle to keep up, it's unsurprising that Americans of all generations are having a hard time financially. For many, this means living paycheck to paycheck.
A slight majority of all Americans polled (54%) describe their household's financial situation as good, which is about the same as it's been for the last year but down from 63% in March of 2022. Older Americans are much more confident in their current finances than younger Americans.
The Federal Reserve tracks the nation's household debt payments as a percentage of disposable income. The most recent debt payment-to-income ratio, from the third quarter of 2023, is 9.8%. That means the average American spends nearly 10% of their monthly income on debt payments.
Data from our survey revealed that 41% of respondents' incomes covered their expenses with nothing left over, meaning they're living paycheck to paycheck.
Only 2% of 25-year-olds make over $100k per year, but this jumps to a considerable 12% by 35. That's a whopping 500% increase in the share of people making $100k or more. 21% of 66-year-olds make $100k per year or more.
According to the US Census Bureau, the majority of Americans (54.98%) make $50,000 per year or less, while only 18% of individual Americans make $100,000 per year or more. This means that over 80% of Americans make less than $100,000 per year.
As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828. Across the nation's largest cities, the range is between $51,558 and $154,590, according to SmartAsset.
What is upper class salary?
Upper-middle class: $94,001 – $153,000. Upper class: greater than $153,000.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate's survey of more than 1,000 respondents conducted in December. That is up from 43% in 2023, yet level when compared to 2022.
Year income | Credit card debt | No credit card debt and no emergency savings |
---|---|---|
Less than $50,000 | 42% | 18% |
$50,000-$74,999 | 39% | 4% |
$75,000-$99,999 | 38% | 4% |
$100,000 or more | 21% | 1% |
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