I don’t know about you, but I always enjoy seeing personal finance statistics.
They provide no actionable takeaways whatsoever but it’s fun to see how you stack up with your peers.
Here are 16 personal finance statistics based on the year 2019.
1. Average 401(k) Balance by Age
The average 401(k) amounts by age per Nerd Wallet/NBCNews.com:
- Ages 20-29: Average 401(k) balance: $11,600. Median 401(k) balance: $4,000.
- Ages 30-39: Average 401(k) balance: $43,600. Median 401(k) balance: $16,500.
- Ages 40-49: Average 401(k) balance: $106,200. Median 401(k) balance: $36,900.
- Ages 50-59: Average 401(k) balance: $179,100. Median 401(k) balance: $62,700.
- Ages 60-69: Average 401(k) balance: $198,600. Median 401(k) balance: $63,000.
To me, this seems to be a little bit low. It’s no wonder people are having a hard time retiring!
2. Amount of Interest Payments Over a Lifetime
“The typical consumer will pay $279,002 over their lifetime in interest payments.” (Credit.com)
This is crazy! And it’s only in interest payments, not even the payments on the money borrowed. Imagine what you could do with nearly 300k!
3. Excellent Credit or $1,000,000?
“Nearly a third (32 percent) of respondents would rather have “excellent” credit than receive one million dollars.” (CapitalOne.com)
We place such a high value on having a great credit score in our society when in reality, all it means is how good are you at borrowing debt.
I would take the mil in a heart beat.
4. Emergency Fund Savings By Generation
“59 percent of Millennials have set aside an average of $9,100 in an emergency fund, more than older generations (Gen X-ers have $8,700, while Boomers have $7,100).” (Fidelity.com)
I would have to say that this is pretty good for millennials as far as the amount saved for emergencies.
But remember that having to much cash in a low-bearing interest savings account is actually a risk because you’re losing purchasing power due to inflation.
It’s a good idea to learn how to put that money to work.
Read: Where to Stash Your Cash
5. Average Earning With Bachelor’s vs. High School Degree
“Those with a bachelor’s degree make an average of $1,000,000 more than those with just a high school diploma.” (BachelorsDegreeCenter.org)
The value of a four-year education is under scrutiny but I think the numbers speak for themselves. You’re going to make more money in your life if you complete a bachelor’s degree.
This may not be true in all circumstances and you may be doing just fine without a degree, but that’s quite a bit of money.
6. Coming Up With Savings
“1 in 3 Americans can’t come up with $2,000 in case of an emergency” (YahooFinance.com)
What this study is talking about is 33% of Americans couldn’t come up with this amount of money without having to sell something or go into debt. Hopefully, this isn’t you!
7. Paying for Medical Bills
“One-third of Americans would not be able to handle a $100 medical bill without going into debt.” (FoxBusiness.com)
These are probably the same people that couldn’t come up with $2,000 if they had to. That’s a lot of people living on the edge of a big financial crisis!
8. Amount of Debt at Death
“Americans are dying with an average of $62K of debt.” (FoxBusiness.com)
Hopefully, you don’t compare to this personal finance statistic because that would mean you are dead. But because you’re reading this I’m going to assume you’re alive.
Think of how many Americans die each year. That’s a lot of unpaid debt that puts a lot of strain on close family members.
I’ve worked with retired individuals before and you’d be surprised to know how many of them are still carrying their student loans with them with no plans to pay them back.
How much debt would you leave behind if you passed away?
9. How Women View Men With Debt
“Women view men as unattractive if they have a lot of debt. For men, physical appearance carries more weight, and debt doesn’t play a role.” (LendingTree.com)
It’s unattractive guys if you’re carrying a lot of debt. For the ladies, it’s ok as long as you’re good looking?
10. An Attractive Person Won’t Date Someone With Bad Credit
“40% of people who self-identify as very attractive wouldn’t date someone with bad credit; more than 60% wouldn’t walk down the aisle with them.” (LendingTree.com)
Going back to the fact that we place a high value on credit scores, it can be embarrassing if you’re dating someone and they find out that you have a low credit score!
If you want to increase your credit score and date someone very attractive, read this: How to Increase Your Credit Score.
11. Checking a Partners Finances Before Marriage By Gender
“4 in 5 women think it’s very important to check your partner’s finances before marriage — only 3 in 5 men do.”
Marriage is a big commitment!
Make sure you understand what you’re getting yourself into.
I probably wouldn’t ask for a credit report on your first date, but finances should definitely be discussed before tying the knot.
12. Average Holiday Credit Card Debt & Time to Pay It Off
“The average American racked up $1,054 of post-holiday credit card debt, which will take the average respondent 10.28 months to repay!” (CNBC.com)
Just in time for the holidays again, yay!
13. Combining Finances As A Couple
“55% of couples combine their money, up 4% since last year.” (TD Ameritrade)
What do you guys think? Is it better to combine your finances with your significant other or keep them separate?
My wife and I have had our finances combined ever since we got married.
14. Coffee vs. Retirement
“27% of the millennials are spending more on coffee each month than saving for retirement.” (LendEDU)
When you learn about the latte factor this can have a huge impact on your retirement!
15. Restaurants vs. Retirement
“49% of millennials were spending more on restaurants and dining out each month than they were saving for retirement.”
I’m not surprised to see this because eating out can get really expensive!
And I get the mentality that a lot of millennials have, “why save my money for retirement when that is so far away? Plus, I could really go for a nice burger right now.”
16. Average Amount Millennials Save Per Month Toward Retirement
“Amongst millennial respondents that were saving for retirement, the average amount saved per month was $480.″
This is decent!
If you’re saving that amount of money per month starting at age 25 and continue until you retire at 65, you’re going to have over $3,000,000.
Personal Finance Statistics Conclusion
These were a few of the many personal finance statistics. And things are always changing so it’s hard to know exactly what is accurate.
If you’d like a better idea of how you stack up against your peers, download a personal finance app called Status Money.
Don’t forget, if you’re looking for an attractive mate, it’s important to not only have a good credit score but avoid debt as well.
I hope these personal finance statistics inspire you to take some action!