While the average American household earned $74,580 in 2022, a deeper look at our finances reveals a nation where a slim safety net, mounting debt, and a stark income divide tell a much more complicated story.
Key Takeaways
- In 2022, the median household income for the average American household was $74,580, representing a 2.3% increase from 2021 after inflation adjustment
- The average annual salary for full-time American workers in 2023 was $59,384, with men earning $66,463 and women $55,888
- In 2021, the top 20% of American households earned 52% of total income, while the bottom 20% earned just 3%
- The average American family's liquid savings in 2023 was $8,000, down from pre-pandemic levels
- Median retirement savings for Americans aged 55-64 was $185,000 in 2022
- 58% of Americans have less than $1,000 in savings as of 2023
- The average American household carried $103,358 in total debt in 2023
- Average credit card debt per U.S. adult with a card was $6,501 in 2023
- Student loan debt averaged $37,127 per borrower in Q4 2023, totaling $1.6 trillion nationally
- The average American household spent $9,826 annually on housing in 2022, or 33% of income
- Annual food spending for average U.S. consumer unit was $5,703 in 2022
- Transportation expenses averaged $12,295 per household in 2022
- The average American had $88,400 in retirement savings in 2022
- 53% of U.S. workers participated in a workplace retirement plan in 2023
- Average 401(k) balance for Americans aged 30-39 was $49,800 in 2023
American incomes are rising slightly but savings remain low and debt is high.
Debt
- The average American household carried $103,358 in total debt in 2023
- Average credit card debt per U.S. adult with a card was $6,501 in 2023
- Student loan debt averaged $37,127 per borrower in Q4 2023, totaling $1.6 trillion nationally
- Average mortgage balance for U.S. homeowners was $244,498 in 2023
- Auto loan debt averaged $23,155 per borrower in 2023, with total outstanding $1.61 trillion
- 44% of Americans carry credit card debt month-to-month, averaging $7,000 per household in 2023
- Average personal loan balance was $9,808 in 2023
- Household debt-to-income ratio reached 130% for the average American in Q3 2023
- Median credit card debt for millennials was $5,200 in 2023
- Total U.S. credit card debt hit $1.13 trillion in 2023, averaging $8,500 per cardholder
- Average HELOC balance was $72,000 for borrowers in 2023
- Student debt for Gen Z borrowers averaged $20,000 in 2023
- 35% of Americans have debt in collections, averaging $2,100 per person in 2023
- Average mortgage debt service payment was 11.2% of disposable income in 2023
- Credit card delinquency rate rose to 3.2% for average accounts in Q4 2023
- Buy now, pay later debt averaged $400 per user in 2023
- Average payday loan amount was $375 with fees making APR 400% in 2023
- Household non-housing debt averaged $48,000 in 2022 SCF
Debt Interpretation
In light of these figures, the average American is essentially piloting a delicately balanced, debt-fueled airship, where the onboard champagne is paid for with a credit card that's perpetually on fire.
Income
- In 2022, the median household income for the average American household was $74,580, representing a 2.3% increase from 2021 after inflation adjustment
- The average annual salary for full-time American workers in 2023 was $59,384, with men earning $66,463 and women $55,888
- In 2021, the top 20% of American households earned 52% of total income, while the bottom 20% earned just 3%
- Average weekly earnings for private sector production workers in Q4 2023 were $1,137.60, up 4.1% from the previous year
- The median personal income for Americans aged 25-34 in 2022 was $47,960
- In 2023, average hourly earnings for all private employees rose to $34.55, a 4.1% year-over-year increase
- Household income for married-couple families averaged $108,206 in 2022, compared to $49,260 for female householder families
- The Gini index for U.S. household income inequality was 0.410 in 2022, indicating moderate inequality
- Average income for Americans with a bachelor's degree was $81,910 in 2022, versus $40,080 for high school graduates
- Real median household income for non-Hispanic White households was $77,999 in 2022
- In 2023, the average American worker's take-home pay after taxes was approximately $3,800 per month
- Median income for urban households was $76,810 in 2022, higher than $62,270 for rural households
- Average earnings for tech professionals in the U.S. reached $121,000 in 2023
- The bottom quintile's average household income was $15,670 in 2022
- In Q1 2024, average hourly wages grew 4.0% year-over-year to $35.02
- Median income for Asian American households was $101,418 in 2022, the highest among racial groups
- Average salary for entry-level jobs in 2023 was $42,000 annually
- Household income in the Northeast averaged $84,500 in 2022
- Real median earnings for men working full-time were $61,200 in 2022
- Average income for self-employed Americans was $73,500 in 2023
Income Interpretation
While the average American household income saw modest gains and educational attainment predictably paid dividends, the staggering concentration of wealth among the top quintile reveals an economy where the ladder to the middle class remains sturdy, but the platform at the top has become a disproportionately crowded and exclusive balcony.
Retirement
- The average American had $88,400 in retirement savings in 2022
- 53% of U.S. workers participated in a workplace retirement plan in 2023
- Average 401(k) balance for Americans aged 30-39 was $49,800 in 2023
- Median IRA balance was $87,000 for all account holders in 2022
- Social Security benefits averaged $1,827 monthly per retiree in 2024
- 401(k) contribution rate averaged 7.4% of salary in 2023
- Average pension balance for near-retirees was $232,710 in 2023
- 49% of Americans aged 55+ fear outliving savings
- Average Roth IRA balance was $34,200 in 2022
- Retirement account assets totaled $38.8 trillion in U.S. in Q4 2023
- Median 401(k) balance for ages 65+ was $232,710 in 2023
- Average Social Security replacement rate is 40% of pre-retirement income
- 78% of Americans plan to claim Social Security at age 62 or earlier
- Average annuity income for retirees was $1,500 monthly in 2023
- IRA withdrawals averaged $92,000 lifetime per account in 2022
- 29% of retirement savers have less than $10,000 saved in 2023
- Average target-date fund allocation shifted to 50% stocks for 60-year-olds in 2023
Retirement Interpretation
The collective American retirement plan appears to be a precarious cocktail of hopeful savings, heavy reliance on Social Security claimed early, and a quiet, widespread dread of the financial marathon outlasting the runner.
Savings
- The average American family's liquid savings in 2023 was $8,000, down from pre-pandemic levels
- Median retirement savings for Americans aged 55-64 was $185,000 in 2022
- 58% of Americans have less than $1,000 in savings as of 2023
- Average transaction account balance per household was $62,410 in 2022 Survey of Consumer Finances
- Total U.S. household savings rate dropped to 3.9% of disposable income in 2023
- Median savings for Americans under 35 was $11,200 in 2023
- 49% of Americans couldn't cover a $1,000 emergency expense from savings in 2023
- Average high-yield savings account balance for Americans was $7,500 in 2023
- Household net worth excluding home equity averaged $199,100 in 2022
- Personal savings rate for millennials averaged 6.2% in 2023
- Average certificate of deposit (CD) balance per saver was $12,300 in 2023
- Median money market account balance was $15,000 for U.S. households in 2022
- 28% of Americans have no savings at all in 2023
- Average savings for baby boomers was $214,000 in 2023
- Total U.S. household deposits reached $18.3 trillion in 2023, averaging $137,000 per household
- Median emergency fund size was 3 months of expenses, or $9,000, for prepared Americans in 2023
- Average savings account interest earned by Americans was $120 annually in 2023
- Household cash savings excluding retirement accounts averaged $22,000 in 2022 SCF
- Savings rate for Gen Z averaged 4.5% of income in 2023
Savings Interpretation
While the numbers paint a grim picture of widespread financial fragility—with most Americans dangerously unprepared for emergencies and retirement—the soaring total deposits reveal a stark and troubling truth: a small, prepared minority holds nearly all the wealth, leaving the average person with a cushion so thin that a $120 annual interest payment feels like a cruel joke.
Spending
- The average American household spent $9,826 annually on housing in 2022, or 33% of income
- Annual food spending for average U.S. consumer unit was $5,703 in 2022
- Transportation expenses averaged $12,295 per household in 2022
- Average healthcare spending per person was $13,493 in 2022
- Entertainment spending reached $3,393 annually per household in 2022
- Apparel and services cost the average consumer $1,945 in 2022
- Average household utility bills totaled $4,320 yearly in 2023
- Dining out expenses averaged $3,639 per household in 2022
- Education spending per consumer unit was $1,984 in 2022
- Average credit card spending was $5,418 monthly in 2023
- Gasoline expenditures averaged $2,913 per household in 2022
- Personal insurance and pensions cost $8,790 annually in 2022
- Average grocery bill was $476 monthly per household in 2023
- Vacation spending averaged $4,000 per family in 2023
- Household goods and services spending was $2,314 in 2022
- Average phone and internet bill was $179 monthly in 2023
- Cash contributions to charity averaged $1,142 per household in 2022
- Alcohol spending was $577 annually per consumer in 2022
- Reading and education materials cost $127 yearly in 2022
Spending Interpretation
The American dream seems to be a meticulously itemized nightmare, where housing, healthcare, and transportation form a brutal trifecta that devours income, leaving us to budget our hopes between a $476 grocery bill and the audacity of a $4,000 vacation.
Sources & References
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