Research, Statistics & Quotes
The US Census shows that 1 in every 2 people are poor or low-income. Nearly half of Americans are low-income as rising expenses and unemployment shrink the middle class.
39.4% of adults said their families had trouble meeting at least one basic need for food, health care, housing, or utilities last year.
The lowest preretirement income quartile would need to defer retirement age to 84 before 90 percent of the households would have a 50 percent probability of success.
65% of workers have less than $100K saved for retirement, with nearly 50% having less than $25K. AARP 2017 retirement confidence survey
A couple can expect to spend $275K in out of pocket medical expenses in retirement.
About half of households age 55 and older have no retirement savings (such as in a 401(k) plan or an IRA).
Studies have shown that retail investors lack an understanding of how compound interest or inflation work. The losses that result are estimated to set our economy back by some $10 billion a year.
Americans had $1.021 trillion in outstanding revolving credit of which $1 trillion is credit card debt. The average monthly balance for borrowers who cannot pay their balance in full is $9,600 and $1,254 is paid in credit card interest each year.
Americans owe $1.3 trillion in student loans. More than seven million borrowers are in default, and millions more are behind on their payments.
Currently, 43% of card holders carry a balance each month. Their ranks actually fell 1% in the second quarter of 2017, after rising slightly in the first quarter.
Two-thirds of US would struggle to cover $1,000 crisis.
A recent Federal Reserve Survey found that 44% struggle to come up with $400 for an unexpected expense. This lack of a well-funded emergency fund happens throughout the income scale.
Nearly half of Americans say their expenses are equal to or greater than their income. And for those aged 18 to 25 the percentage is over half, up to 54%.
A Gallup study shows 33% of Americans prepare a detailed household budget and a U.S. Bank study shows similar results with only 41% having a budget.
Gallup & https://stories.usbank.com/dam/possibilityindex/USBankPossibilityIndex.pdf
More than 19 million households in America (or about 30 percent of all renters) pay more than half of their monthly income on housing.
Younger adults are spending a stunning amount of money on rent — $93,000 by age 30, according to a new study. More important, rent sucks up about 45% of their income during their first, critical decade in the workforce. That leaves precious little left over to save for a down payment and work toward entering that second phase of adulthood — household formation.
Small/medium business owners and managers across the United States were asked, “Has your company conducted a credit or financial background check as a condition of hiring or giving a promotion?” The results indicated that 25.9% answered “Yes.”
The NFEC asked 3,514 individuals, “Has an employer or potential employer ever conducted a credit or financial background check as a condition of hiring you or giving you a promotion?” Of the 1,100 respondents, 26.3% answered “Yes,” with 4.08 saying they were turned down for a job.
“One in four unemployed Americans have been required to go through a credit check when applying for a job, and one in ten have been denied jobs due to information in their credit report.
The national survey of 1,000 adults found that 42 percent of all cardholders have neglected at least one card payment. The most common reason was forgetting (60 percent), followed by not having enough money (35 percent), being too busy (13 percent), and traveling (11 percent).
More than two of five (28%) marketplace enrollees and a quarter of people with employer health insurance plans are underinsured.
Half (52%) of underinsured adults reported problems with medical bills or debt and more than two of five (45%) reported not getting needed care because of cost.
A RAND Health study shows that the doubling of health costs between 1999 and 2009 largely wiped out an average family’s real income gains. In fact, in 2009 the family had a net gain of only $95 per month. If health care costs had tracked general inflation over the decade, the family would have had nearly $5,400 more in 2009.
Insurance premiums expected to rise 4% to 6%, before factoring in COVID
In 2018 the average annual premium for employer-based family coverage rose 5 percent to $19,616; for single coverage, premiums rose 3 percent to $6,896. Covered workers contributed 18 percent of the cost for single coverage and 29 percent of the cost for family coverage, on average, with considerable variation across firms.
NFEC Position Statement
People are going through financial hardships. From kids who lack basic necessities, to families seeing their dreams of retirement slip away – the financial challenges people face today have powerful impact on their health, well-being, and security. The epidemic of financial problems is vast.
It is the NFEC’s mission to provide tools, training, and resources to those who teach personal finance and advocate for increased access to financial literacy education. We honor our financial education champions and partner with them to spur this vitally important movement forward. No matter the size and scope of a program, our goal is to help it expand, improve results, and scale, so the effort can reach more people with this much-needed information.