GITNUX REPORT 2024

Eye-opening statistics reveal challenges in Personal Finance Industry for Americans

Exploring personal finance industry woes: staggering debt, low savings, and lack of financial literacy.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

78% of Americans live paycheck to paycheck

Statistic 2

The average American spends $5,174 per year on groceries

Statistic 3

The average American spends $1,497 per year on entertainment

Statistic 4

The average American household spends $10,742 per year on housing

Statistic 5

The average American spends $3,459 per year on health care

Statistic 6

The average American household spends $9,826 per year on transportation

Statistic 7

The average American spends $3,365 per year on restaurants and takeout

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The average American household spends $1,883 per year on apparel and services

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The average American spends $1,496 per year on personal insurance and pensions

Statistic 10

The average American spends $762 per year on personal care products and services

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The average American household spends $3,526 per year on entertainment

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The average American spends $1,866 per year on cash contributions

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The average American household spends $4,643 per year on food at home

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The average American spends $1,434 per year on education

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The average American household spends $4,464 per year on utilities

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Only 37% of Americans have a budget

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The average American spends $1,833 per year on cash contributions

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The average American household spends $1,883 per year on apparel and services

Statistic 19

The average American spends $3,459 per year on health care

Statistic 20

The average American household spends $9,761 per year on transportation

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The average American spends $1,496 per year on personal insurance and pensions

Statistic 22

The average American household spends $7,923 per year on food

Statistic 23

The average American spends $1,866 per year on cash contributions

Statistic 24

The average American household spends $4,643 per year on food at home

Statistic 25

The average American spends $3,365 per year on restaurants and takeout

Statistic 26

The average American household spends $1,883 per year on apparel and services

Statistic 27

The average credit score in the US is 716

Statistic 28

The average American household carries $6,270 in credit card debt

Statistic 29

The average student loan debt is $37,693

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43% of credit card holders carry a balance month to month

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35% of Americans have medical debt

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The average American household carries $137,063 in debt

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Only 39% of Americans can afford a $1,000 emergency expense

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Only 39% of Americans have enough savings to cover three months of expenses

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64% of Americans can't cover a $1,000 emergency

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69% of Americans have less than $1,000 in savings

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44% of Americans don't have enough cash to cover a $400 emergency

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40% of Americans can't cover a $400 emergency expense

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56% of Americans can't cover a $1,000 emergency expense

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44% of Americans don't have enough cash to cover a $400 emergency

Statistic 41

Only 30% of Americans are financially healthy

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59% of Americans live paycheck to paycheck

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Only 24% of millennials demonstrate basic financial literacy

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Only 16% of Americans have a high level of financial literacy

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Only 23% of millennials say they 'understand' their finances

Statistic 46

Only 24% of millennials demonstrate basic financial literacy

Statistic 47

Only 24% of millennials demonstrate basic financial literacy

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Only 30% of Americans have a long-term financial plan

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Only 17% of Americans use a financial advisor

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Only 29% of Americans have a financial advisor

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Only 17% of Americans use a financial advisor

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The average American household income is $87,864

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46% of Americans have a side hustle

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55% of Americans own stocks

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45% of Americans have no investments in the stock market

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The average 401(k) balance is $106,478

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33% of Americans have no retirement savings

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52% of Americans are behind on retirement savings

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The median retirement savings for all working-age families is just $5,000

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51% of Americans have taken early withdrawals from their retirement accounts

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Only 30% of Americans are very confident they're saving enough for retirement

Statistic 62

45% of Americans have no retirement savings

Statistic 63

33% of Americans have $0 saved for retirement

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Summary

  • 78% of Americans live paycheck to paycheck
  • Only 39% of Americans can afford a $1,000 emergency expense
  • The average American household carries $6,270 in credit card debt
  • 55% of Americans own stocks
  • The average 401(k) balance is $106,478
  • 33% of Americans have no retirement savings
  • The average student loan debt is $37,693
  • 43% of credit card holders carry a balance month to month
  • The average American spends $5,174 per year on groceries
  • Only 30% of Americans have a long-term financial plan
  • The average American household income is $87,864
  • 52% of Americans are behind on retirement savings
  • The average credit score in the US is 716
  • 35% of Americans have medical debt
  • The average American spends $1,497 per year on entertainment

In a world where seemingly everyone is one unexpected expense away from financial catastrophe, the grim reality of American personal finance emerges. From the staggering 78% living paycheck to paycheck to the daunting statistics revealing the average households mountain of debt and paltry retirement savings, its clear that the personal finance industry has its work cut out for it. Join us as we delve into the eye-opening numbers that paint a vivid picture of the financial landscape of the average American - a landscape peppered with pitfalls, side hustles, and the occasional glimmer of financial literacy.

Budgeting and Saving

  • 78% of Americans live paycheck to paycheck
  • The average American spends $5,174 per year on groceries
  • The average American spends $1,497 per year on entertainment
  • The average American household spends $10,742 per year on housing
  • The average American spends $3,459 per year on health care
  • The average American household spends $9,826 per year on transportation
  • The average American spends $3,365 per year on restaurants and takeout
  • The average American household spends $1,883 per year on apparel and services
  • The average American spends $1,496 per year on personal insurance and pensions
  • The average American spends $762 per year on personal care products and services
  • The average American household spends $3,526 per year on entertainment
  • The average American spends $1,866 per year on cash contributions
  • The average American household spends $4,643 per year on food at home
  • The average American spends $1,434 per year on education
  • The average American household spends $4,464 per year on utilities
  • Only 37% of Americans have a budget
  • The average American spends $1,833 per year on cash contributions
  • The average American household spends $1,883 per year on apparel and services
  • The average American spends $3,459 per year on health care
  • The average American household spends $9,761 per year on transportation
  • The average American spends $1,496 per year on personal insurance and pensions
  • The average American household spends $7,923 per year on food
  • The average American spends $1,866 per year on cash contributions
  • The average American household spends $4,643 per year on food at home
  • The average American spends $3,365 per year on restaurants and takeout
  • The average American household spends $1,883 per year on apparel and services

Interpretation

In a financial ecosystem where the numbers dance to the tune of American spending habits, it's evident that while the dollar flows freely, financial literacy seems to be scarce. The statistics paint a picture of fleeting paychecks against towering expenses: from the feast of groceries to the allure of entertainment, the shelter of housing to the necessity of health care. Yet, in this lavish landscape, the budget is often but a distant acquaintance for the majority, as cash contributions flutter away and expenses pile up like a never-ending carousel ride. Perhaps it's time for Americans to not just follow the money, but to truly understand where it leads them, and to march their finances to the beat of a bolder, more calculated drum.

Credit Management

  • The average credit score in the US is 716

Interpretation

With the average credit score in the US standing at 716, it seems like Americans are navigating the financial seesaw with reasonable finesse. This number is not just a digit on a scale, but a reflection of our financial behaviors and decisions. Are we the savvy savers who bounce back from setbacks, or the impulse spenders who teeter on the edge of financial instability? Let's take this average credit score as a mirror, reflecting back at us the image of our financial responsibility and resilience.

Debt Management

  • The average American household carries $6,270 in credit card debt
  • The average student loan debt is $37,693
  • 43% of credit card holders carry a balance month to month
  • 35% of Americans have medical debt
  • The average American household carries $137,063 in debt

Interpretation

These statistics paint a grim but not-so-shocking picture of the personal finance landscape in the United States. With credit card debt hovering around $6,270 per household and student loan debt reaching a staggering $37,693 on average, it's clear that many Americans are juggling financial burdens on a daily basis. The fact that 43% of credit card holders carry a balance month to month only adds to the narrative of perpetual debt cycle. Add in medical debt affecting 35% of the population and an overall household debt of $137,063, and you have a financial rollercoaster that many are struggling to get off. It seems that for a lot of people, the American Dream has become the American Debt.

Emergency Funds

  • Only 39% of Americans can afford a $1,000 emergency expense
  • Only 39% of Americans have enough savings to cover three months of expenses
  • 64% of Americans can't cover a $1,000 emergency
  • 69% of Americans have less than $1,000 in savings
  • 44% of Americans don't have enough cash to cover a $400 emergency
  • 40% of Americans can't cover a $400 emergency expense
  • 56% of Americans can't cover a $1,000 emergency expense
  • 44% of Americans don't have enough cash to cover a $400 emergency

Interpretation

In a nation where the phrase "life happens" has become a constant refrain, it appears that many Americans are struggling to catch up with the unexpected twists and turns of financial reality. With only 39% able to handle a $1,000 emergency, and an even smaller percentage prepared for three months of expenses, it seems that financial stability is more of a tightrope walk than a solid foundation for many. From minor setbacks to major crises, the majority find themselves teetering on the edge of financial disaster, highlighting a pressing need for better money management skills and a more robust safety net. As these statistics illustrate, in a world where uncertainty is the only certainty, being financially prepared may just be the best insurance policy one can have.

Financial Health

  • Only 30% of Americans are financially healthy
  • 59% of Americans live paycheck to paycheck

Interpretation

In a modern society where trends and hashtags dominate social media, it seems only fitting that our financial habits have also become a trending topic. With only 30% of Americans deemed financially healthy and a staggering 59% living paycheck to paycheck, it appears that our bank accounts could use a #MoneyMakeover. Perhaps it's time to shift our focus from followers and likes to dollars and sense, and start prioritizing financial fitness over fleeting fame.

Financial Literacy

  • Only 24% of millennials demonstrate basic financial literacy
  • Only 16% of Americans have a high level of financial literacy
  • Only 23% of millennials say they 'understand' their finances
  • Only 24% of millennials demonstrate basic financial literacy
  • Only 24% of millennials demonstrate basic financial literacy

Interpretation

In a world where avocado toast is a hot topic and TikTok trends reign supreme, it seems that financial literacy is the real elusive currency. With only 16% of Americans boasting a high level of financial literacy, and a mere 24% of millennials able to demonstrate basic financial know-how, it's clear that understanding money matters remains a daunting challenge for many. As 23% of millennials bravely admit they actually 'understand' their finances (sympathies to the other 77%), it's high time we swap out those emojis for some good old-fashioned budgeting skills. After all, a balanced bank account is the new black.

Financial Planning

  • Only 30% of Americans have a long-term financial plan
  • Only 17% of Americans use a financial advisor
  • Only 29% of Americans have a financial advisor
  • Only 17% of Americans use a financial advisor

Interpretation

In a country where 70% of the population seems to be winging it when it comes to money matters, perhaps it's time for more Americans to channel their inner Monopoly player and start strategizing. With less people having a long-term financial plan than there are flavors at Baskin Robbins, the low utilization of financial advisors suggests that many prefer going solo in this fiscal rodeo. So, if you find yourself contemplating your financial future alone while avoiding professional guidance like it's a financial plague, just remember - even Batman had Alfred to help manage his wealth.

Income and Earnings

  • The average American household income is $87,864
  • 46% of Americans have a side hustle

Interpretation

In a country where the pursuit of the American Dream often feels like a never-ending marathon, it appears that many are choosing to lace up additional pairs of sneakers for a side hustle sprint. With the average household income clocking in at $87,864, it seems like the concept of the side hustle has become as commonplace as morning coffee. Whether it's out of necessity or a desire for extra financial padding, nearly half of Americans are donning their entrepreneurial hats in the pursuit of economic success. As the saying goes, "work smarter, not harder" seems to have translated to "work harder, then work even smarter on the side"—a paradoxical reality that underscores the complexities of modern financial strategies.

Investing

  • 55% of Americans own stocks
  • 45% of Americans have no investments in the stock market

Interpretation

With 55% of Americans dabbling in stocks and 45% staying clear of the market frenzy, it’s evident that the financial landscape is akin to a bustling stock exchange, with some eagerly investing while others remain on the sidelines, opting for a more conservative approach. This divide showcases the diverse attitudes towards risk and reward, illustrating that when it comes to personal finance, there's no one-size-fits-all strategy. Whether you're a cautious observer or a fearless investor, navigating the stock market requires a blend of calculation and courage.

Retirement Planning

  • The average 401(k) balance is $106,478
  • 33% of Americans have no retirement savings
  • 52% of Americans are behind on retirement savings
  • The median retirement savings for all working-age families is just $5,000
  • 51% of Americans have taken early withdrawals from their retirement accounts
  • Only 30% of Americans are very confident they're saving enough for retirement
  • 45% of Americans have no retirement savings
  • 33% of Americans have $0 saved for retirement

Interpretation

These personal finance industry statistics paint a rather grim picture of the state of retirement savings in America. With the average 401(k) balance seeming healthy at $106,478, it is overshadowed by the staggering revelation that 33% of Americans have no retirement savings at all. The fact that 52% of Americans are behind on retirement savings, and the median savings for working-age families is a meager $5,000, illustrates the urgent need for financial education and planning. It appears that the temptation of early withdrawals is prevalent, with 51% of Americans succumbing to this risky practice. Despite all these alarming figures, only 30% of Americans are very confident they are saving enough for retirement. A significant 45% have no retirement savings, and the hard truth is that a striking 33% have absolutely nothing saved for their golden years. These statistics serve as a poignant reminder of the importance of taking proactive steps towards securing a financially stable retirement.

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