33 Intriguing Money Management Statistics & Facts to Know (2022)

Money Management is tricky. You have to worry about expenses, bills, and investments on top of trying to save money. 

Did you know that the average American has less than $1,000 in savings? That’s not enough to cover a financial emergency.

Money management doesn’t have to be complicated. With our personal finance statistics and money management statistics, you can learn how to make the most of your money and find ways to save more.

Top 10 Money Management Statistics (Editor’s Choice)

  1. By the end of 2016, the United States’ outstanding debt totaled $1 trillion.
  2. Only 24% of Millennials have a basic understanding of money.
  3. According to a 2018 survey, 34% of Americans said they had not spoken to anyone about financial planning.
  4. In 2020, financial illiteracy will cost Americans $415 billion.
  5. Only about half of the states in the United States require students to take a personal finance course.
  6. In the fourth quarter of 2020, the mortgage debt was 10.04 trillion USD, down from $13.95 trillion in 2019.
  7. By 2018, more than 40 million Americans will be in debt due to federal student loans.
  8. The average cost of a winter vacation in the United States is $1,048.
  9. In 2016, nearly 60% of millennials had less than $10,000 set aside for retirement, compared to 50% of Baby Boomers.
  10. The average millennial has $30,580 in debt.

Loans and Debts Statistics

1) According to a United States Census Bureau survey, 62.4 percent of American adults carry credit card debt, while 17.5 percent have student loan debt.

Even though this data shows how serious student loan debt is for borrowers, more Americans are in debt. Student loan debt is the second most common source of debt after mortgage debt.

(Source: Debt.com)

2) By the end of 2016, the United States’ outstanding debt totaled $1 trillion.

According to the Nilsen Report, only 650 billion USD of the $1 trillion debt was subject to financial charges, a trade publication for the card and mobile payment industries, whereas 1.407 trillion USD of student loan debt was subject to financial charges, according to the report.

By the end of 2016, 157 million Americans owed money on one or more credit cards, while only 44 million owed money on student loans. This means that nearly four times as many Americans had credit card debt as students had student loan debt in 2016.

(Source: CNBC)

3) By 2021, the US student loan debt was $1.71 trillion, up from $1.50 trillion in the third quarter of 2019.

So far, 45 million Americans have taken out student personal loans. The delinquency rate for student loan borrowers is 11.1 percent (90 days or more).

(Source: Forbes)

4) In the third quarter of 2018, nearly 186,000 Americans received a bankruptcy notice.

Bankruptcies had decreased by 38.1 percent by the end of the fiscal year on March 31, 2021. This sharp drop co-occurred as the COVID-19 epidemic wreaked havoc on the economy in March 2020. In March 2021, there were 473,349 bankruptcy filings, down from 764,282 in the same month the previous year.

(Source: The tokenist)

5) In 2016, the average new car auto loan financing was $28,667.30, while the average used car auto loan financing was $17,241.59.

Last year, the average monthly payment on a vehicle loan was $499, increasing from $483 the year before. In 2014, 62 percent of car loans had terms longer than 60 months, with 20 percent having terms between 73 and 84 months.

(Source: USA Today)

6) In the fourth quarter of 2020, the mortgage debt was 10.04 trillion USD, down from $13.95 trillion in 2019.

The mortgage balance increased by $182 billion in the fourth quarter of 2020. The total housing debt now stands at $10.39 trillion, up from $9.99 trillion in the previous quarter. A new record high of 1.2 trillion USD was reached in newly originated mortgages, including refinancing. In nominal terms, this surpassed the $1.28 trillion recorded during the severe recession of 2007 and the historic refinancing boom in the third quarter of 2003.

(Source: Investopedia)

7) By 2018, more than 40 million Americans will be in debt due to federal student loans.

5.9 million of the over 40 million Americans with student loan debt owe more than $50,000, accounting for 14% of the total. The percentage of people who owed that much money was nearly three times higher in 2000. According to the Federal Reserve, 18 percent of the most recent borrowers who began repayment in 2014 owed more than $50,000.

(Source: Money.com)

8) American Debt: In 2020, auto loan balances will reach $1.36 trillion, up from $1.16 trillion in March 2019.

Despite the pandemic, the United States saw an increase in auto loans.

(Source: Investopedia)

Budgeting and Spending Statistics

Making a budget will assist you in staying on top of your finances, particularly your spending and consumption. It helps us stay on track with our financial goals by instilling discipline and focusing on the big picture.

The statistics in this section show how Americans spend their money.

9) Transportation received $9,761 in the average American’s budget, compared to $4,968 for health care and $3,226 for entertainment.

Transportation, which came in second, was the only thing that received more funding. The money set aside for transportation was more significant than the money for food. Aside from vehicle costs, the transportation budget included costs for insurance and public transportation and fuel, maintenance, and financing.

40% of transportation expenditures go toward the vehicle, such as car loan payments; 21% go toward gasoline and oil; and the remaining 32% go toward other costs, such as repairs and maintenance.

(Source: The tokenist)

10) 32% of Americans use online programs regarding money management, while 24% use an accountant or certified financial planner.

Americans are slightly more likely than people in other countries to manage their finances with the help of a computer or online financial software rather than an accountant or certified financial adviser.

The head of the health care vote is in charge of, among other things, health insurance prices, medical services, prescription medicines, and other medical supplies. Sixty-nine percent of all healthcare costs are covered by insurance.

The entertainment budget accounts for both in-home and out-of-home entertainment and pet-care expenses.

(Source: Gallup)

11) Compared to $1,407 for education, $1,888 for charities, and $768 for personal care products and services, the budget for apparel and services is $1,866.

More funds were allocated to clothing and services than to educational institutions. The smallest amount of money was allocated to personal care products and services. The money donated to charity decreased over time, falling from $2,081 in 2016 to $1,873 in 2017, before rising to $1,888 in 2018.

(Source: The tokenist)

12) The average cost of a winter vacation in the United States is $1,048.

Americans spend more money during the winter holidays than at any other time of the year. This money is split: $659 is spent on gifts for family, friends, and coworkers, $227 is spent on food and décor, and $162 is spent on non-gift items.

(Source: Debt.com)

13) The average American budget includes $7,923 for food, $20,091 for housing, and $7,296 for personal insurance and pensions.

According to the Bureau of Labor Statistics, housing costs more than food in the United States in 2018. Out of the total amount, $4,464 was set aside for food, with $4,464 for meals at home and $3,459 for food away from home. Groceries account for 56 percent of a typical American household’s food budget while dining out accounts for 44 percent.

The funds allocated to housing covered household expenses such as taxes, utilities, maintenance, rent, and mortgage payments, as well as goods and services provided by the government. Payments on rent and mortgages account for 33% of total housing costs.

The Social Security payroll tax is the single most significant expense in personal insurance and pensions. This group is responsible for a variety of expenses in addition to pension payments and life insurance premiums.

(Source: The tokenist)

14) A long-term financial plan, which outlines detailed savings and investment goals, is prepared by 30% of Americans.

According to a 2013 study, only those with a college diploma, independents, republicans, and those earning more than $75,000 per year could create comprehensive budgets.

(Source: Gallup)

Americans’ Financial Planning Statistics

The statistics in this section show how Americans are planning their finances.

15) Compared to only 13% of Americans without a financial advisor, 34 percent of Americans with an advisor are more than twice as likely to have a balance between spending and saving.

It is easier to maintain a proper balance between spending and saving for those who have a financial adviser than it is for those who do not. The fact that 60 percent of those without an adviser said debt reduction was their top goal compared to 37 percent of those with an adviser could be the main reason for this.

(Source: North Western Mutual)

16) Compared to only 21% of Americans without an advisor, 54 percent of Americans with an advisor felt very financially secure.

Individuals who used the services of a financial expert felt more financially secure than those who did not, according to Northwestern Mutual’s 2018 Planning & Progress Study.

(Source: North Western Mutual)

17) Compared to only 37% of those without a financial expert, 75% of Americans with advisors consider themselves disciplined financial planners.

Finally, financial advisers help their clients become more disciplined financial planners to some extent. More than 70% of those who worked with an adviser said their strategy was built to withstand market cycles, compared to only 29% who did not work with an advisor.

(Source: North Western Mutual)

18) According to 59 percent of Americans with an advisor, working past retirement age is something they want to do, while 41% say it’s something they have to do.

Those without an adviser face the opposite situation, with 61 percent planning to work past retirement age due to a lack of other options. Americans who interact with financial professionals have higher retirement preparedness, disciplined planning, and financial confidence than those who do not. This is according to the findings of the 2018 Planning & Progress Study.

(Source: North Western Mutual)

19) Financial planning elicited a range of negative emotions in 40% of Americans who do not have access to a financial expert to help them plan their finances.

People who did not consult with financial advisors expressed a variety of negative emotions, including fear of confronting their financial details (17 percent), preferring to put it off until they are forced to, frustration with their financial situation (9 percent), and skepticism about the value of planning (5 percent).

(Source: North Western Mutual)

20) According to a 2018 survey, 34% of Americans said they had not spoken to anyone about financial planning.

One of the top five barriers to financial security in retirement is a lack of planning.

(Source: North Western Mutual)

21) When faced with a major financial decision, such as buying a home or saving and investing, 42% of Americans seek financial advice. In comparison, 25% seek financial advice when confronted with a financial crisis.

The majority of Americans seek financial advice due to a lack of resources.

(Source: PWC)

Demographic Financial Management Statistics

The statistics below show financial management trends across various demographics.

22) By 2016, millennials were saving for retirement at a rate of 58 percent, compared to 55 percent for baby boomers and 65 percent for Gen Xers.

When it came to retirement savings, millennials were sandwiched between baby boomers and Generation Xers. Generation Xers save more money for retirement than any other generation.

(Source: Ramsey)

23) In 2012, 43 percent of millennials were more likely than 34 percent of young adults to have outstanding student loan debt.

Students have been taking out larger and larger student loans as higher education costs have risen. Millennials are more concerned about repaying their student loan debt than any other generation.

(Source: TIAA Institute)

24) Compared to 43 percent of older working-age adults in 2018 and 54 percent of young adults in 2009, 60 percent of millennials use expensive credit cards.

A large percentage of millennials make financial decisions that are both expensive and long-term. People with retirement accounts have taken out loans or made hardship withdrawals from their accounts in proportion to their income. Even more alarming, only 36% of millennials have calculated how much money they will need to save for retirement.

(Source: TIAA Institute)

25) In 2016, nearly 60% of millennials had less than $10,000 set aside for retirement, compared to 50% of Baby Boomers.

Despite having had less than twenty years to accumulate their retirement assets, millennials are not far behind many of their elders approaching retirement.

(Source: Ramsey)

26) In 2018, 41 percent of millennials had an emergency fund compared to 30 percent in 2009.

When it comes to emergency savings, millennials are less likely than older working-age people. On the other hand, they were more likely than their 2009 counterparts to do so. Due to high levels of debt, poor savings, and high-cost money management habits, which are all common among millennials, young people are particularly vulnerable to financial fragility and anxiety. Three-quarters of millennials say they’re worried about money, and 68 percent say they wouldn’t be able to come up with $2,000 in 30 days if they needed to in an emergency.

(Source: TIAA Institute)

27) The average millennial has $30,580 in debt.

To relieve themselves of the stress of monthly loan payments, millennials should prioritize debt repayment. As a result, they will increase their savings to the required 15% of their income and retire with more than $1 million.

(Source: Ramsey)

28) According to a CNBC report from 2021, the average American had $90,460 in debt by 2020.

There were various other consumer debt products on display, including credit cards, personal loans, mortgages, and student loans. Generation Z will have a debt of $16,043, millennials will have a debt of $87,448, Generation X will have $140,643, baby boomers will have a debt of $97,290, and the silent generation will have a debt of $41,281.

(Source: Debt.org)

Savings Trends in the US.

The data in this section reveals savings patterns in the United States.

29) The average personal savings rate in the United States was 5.6 percent in February 2017.

This means that the average American family only saved about half of what they should have. According to experts, personal savings should be at least 10% of income.

(Source: Debt.com)

30) In February 2021, the personal saving rate in the United States fell from 19.8% in January to 13.6 percent.

The personal saving rate was 13.7 percent at the end of 2020. In 1960, it was, however, 11%. Personal savings are expected to reach $2.3 trillion by 2020.

(Source: Statista)

31) According to a 2019 study, 64 percent of Americans are unprepared for retirement, and 48 percent don’t care.

According to the GO Banking Rates survey, 13.7% of Americans have no money set aside for retirement, while 28.6% have less than $10,000. The percentage of people who have no retirement savings is 27 percent higher than the general population.

Even though most millennials have started saving for retirement, they are only 6% more likely than previous generations to do so. Sixty-three percent of Generation X had savings of $10,000 or more, with 40% having savings of $100,000 or more.

(Source: GO BankingRates)

Money Management Facts

Financial literacy should be promoted among the general public. So let’s start with some financial literacy statistics from around the country.

It’s going to be a bumpy ride, so buckle up!

1) Only 24% of Millennials have a basic understanding of money.

When you think about it, this is a pretty sobering statistic.

Only about a quarter of Millennials have a basic understanding of money and the importance of saving and budgeting. This could be due to technological advancements.

Personal finance tools and options for millennials are more widely available than ever before. However, it appears that many Millennials are unprepared to take advantage of these opportunities. As a result, they are overlooking critical aspects of their finances.

(Source: National Endowment for Financial Education)

2) In 2020, financial illiteracy will cost Americans $415 billion.

Your financial health may be jeopardized due to a lack of money management knowledge.

According to the NFEC study, the average American will lose $1,634 in 2020 due to a lack of personal finance knowledge.

That’s enormous!

The fact that the data represents an increase from the 2018 and 2019 surveys, when Americans lost an average of $1,230 and $1,279, respectively, is even more concerning.

(Source: National Financial Educators Council)

3) Only about half of the states in the United States require students to take a personal finance course.

Every day, we deal with money and make financial decisions. Despite this, we leave our childhood and adolescence with little understanding of mortgages, student loan debt, and responsible credit card usage.

Only 21 states in the United States require high school students to take a personal finance course. Despite accounting for less than half of the country, this figure represents a four-state increase since 2018.

We can only hope that this trend continues and that more Americans are adequately prepared for a cash-driven world.

(Source: Council for Economic Education)

Conclusion

In order to make sound financial decisions, it’s important to have a good understanding of personal finance stats. These 33 intriguing financial statistics and facts provide a snapshot of how Americans manage their finances.

By 2022, we hope that more people will be financially literate and better equipped to make informed choices about their money to improve their financial future.

Do you know your credit score? What is your average credit card debt? How much do you save each month? Are you comfortable with your level of basic financial literacy?

If not, now is the time to take steps to improve your financial education so that you can confidently make smart money moves for yourself and your family. 

Sources

Gallup, Debt.com, Northwestern Mutual, The tokenist, Northwestern Mutual, Pwc, The tokenist, Gallup, CNBC, USA Today, Money.com, Investopedia, Forbes, Investopedia, Statista, GO BankingRates, TIAA Institute, Ramsey, Debt.org.

James Allen is a Certified Financial Education Instructor (CFEI), financial advisor, and Certified Public Accountant (CPA).

He created BillPin to give people the financial tools they need to make more informed financial decisions.

After listening to his mother tell stories about her frugal upbringing and his own experiences working as a financial advisor for almost two decades, James is on a mission to help people change their relationship with money.

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