By the Numbers
WHAT'S THE STATE of America’s family finances? The Federal Reserve just released its once-every-three-year look, in the guise of the 2022 Survey of Consumer Finances, which is based on in-depth interviews with some 4,600 families.
You can read the Fed’s analysis here. Below are some key insights from the latest survey:
Net worth. The typical (or “median”) net worth—meaning the value of all assets minus all debt for those American families halfway down the wealth spectrum—was $192,700 in 2022. But the average (or “mean”) wealth, which measures America’s total net worth divided by all households, stood at $1,059,470. This is a classic example of skewness, with a small number of outliers—in this case, America's wealthiest families—skewing the results higher.
Indeed, for those in the bottom 25%, the typical net worth is $3,500, versus $3.8 million for families among the top 10%. The two most widely held assets were bank and other “transaction” accounts, held by 98.6% of families, and cars and other vehicles, at 86.6%.
Income. Skewness also shows up in pretax family income. As of the latest survey, the typical household income was $70,260, while the average was twice as high, at $141,390.
Stocks. As of 2022, 58% of U.S. families were invested in the stock market, up from 48.9% nine years earlier. Direct stock ownership—as opposed to ownership through, say, mutual funds or retirement plans—had been trending lower in recent decades. But it jumped to 21% of families in 2022, from 15.2% in 2019, no doubt driven in part by the proliferation of trading apps and by the introduction of zero-commission stock trades by discount brokers. The jump in direct stock ownership shows up across all age groups, except those 75 and older.
Real estate. The Fed's survey found that 66% of American families owned their primary residence, up from 63.7% six years earlier, but below the peak of 69% in 2004. Among homeowners, 63.9% had some sort of home loan. The median home equity—home value minus home loans—soared to $201,000 in 2022 from $139,100 in 2019.
Retirement accounts. Among all families, 54.4% have a retirement account. Even in the age group where retirement accounts are most widespread—those ages 45 to 54—they’re held by just 62.2% of households. Those ages 65 to 74 had median retirement account balances of $200,000, enough to generate $670 in monthly income, assuming a 4% withdrawal rate.
Credit cards. Despite all the handwringing, credit card balances in inflation-adjusted terms are at their lowest levels since the 1990s. In 2022, 45.2% of families had card debt, down marginally from 2019, with a typical balance of $2,700 and an average balance of $6,120. Credit card debt is the most common form of debt, ahead of home loans, which 42.2% of families have, and car loans at 34.7%. Overall, 77.4% of families have some form of debt.
Education loans. Roughly a fifth of families have student loans, with a typical balance of $24,500 and an average balance of $46,980. These figures are little changed from three years earlier.
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