5 Financial Statistics To Be Thankful/Worried For
This Thanksgiving may see you and your family feeling less thankful. With so much change, uncertainty, and unknowns for the future, it may be difficult to feel that much has gone right in 2020. However, it may be helpful to put your troubles into the greater context of what has gone well. It might be helpful to see where you have made progress this year and where you still need help to catch up:
- Many families struggle with balancing a budget from month to month. There may be days leading up to a paycheck where it may be tempting to finance your needs using credit cards. However, there are many families that have a revolving credit card debt balance that builds up interest over time. According to NerdWallet, the average credit card debt per household hovers around $6,124.
- An education is one of the most valuable assets someone can have that often appreciates with time; however, many find the costs of the education to be staggering compared to the immediate benefit from employment. According to Educationdata.org, there are approx. 44.7 million student borrowers with an average debt of $37,584 each!
- There may be occasions where people need to break the piggy bank especially on rainy days. What happens when there is nothing inside? According to GOBankingRates’ poll of American households, less than 69% of those polled in 2019 had more than $1,000 in savings. Considering the average U.S. family employer sponsored health insurance deductible is $3,655 and the average single deductible is $1,931, many U.S. families are one medical emergency away from medical debt or bankruptcy.
- Perhaps retirement is driving for Uber part time and collecting Social Security, or maybe it’s sitting on a beach and relaxing. Whatever your retirement looks like, saving is essential for you to have options. Older workers tend to have more saved than younger workers based on the time they have had in the market, as well as more years to contribute. Here is some research from the Federal Reserve SCF data to help you see what your peers have done with retirement savings.
- As one of the wealthiest nations on earth, many households in the United States make inomes multiple times what many in the developing world could hope to make in a year. That being said, it is difficult to compare with individuals miles and miles away, rather it is easier to compare with neighbors and friends. Based on U.S. Census, median household income was $68,703 in 2019.
Are there areas where you have risen above and beyond the average? Then give thanks for your good fortune and hopefully you will continue to rise to the occasion. Are there areas where you need to improve? Perhaps it is time to make difficult decisions and make progress towards your long term goals. Whatever your stage in your financial journey, here at My Financial Coach, we believe that there are always areas we can do better and areas where we are doing well and to set to work on one and celebrate the other! Let’s start a conversation today.
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