Shocking Money Stats of the Average Person

About this video

• Video Title: Shocking Money Stats of the Average Person
• Channel: Nick Invests
• Speakers: Nick
• Duration: 22:06

Overview

This video aims to provide a clear picture of the average person's financial situation by examining statistics on income, retirement savings, spending habits, credit scores, debt, net worth, savings rates, and retirement age. The presenter, Nick, uses these figures to highlight common financial pitfalls and encourage viewers to make informed decisions to improve their own financial health.

Key takeaways

• Median Individual Income: The median weekly earnings for a full-time worker is just over $1,000, translating to roughly $52,000 annually before taxes. After taxes and deductions, this can shrink to $35,000-$40,000.
• Retirement Savings: The median retirement savings for Americans is $65,000, but a significant portion (25%) has no retirement accounts at all. For those 65 and older, the median balance is $88,000, which, using the 4% withdrawal rule, yields only about $300 per month.
• Average Household Spending: The average household spends approximately $5,577 per month, or $67,000 annually. The largest expenses are housing ($1,885/month), food ($691/month), and transportation ($913/month).
• Credit Score and Debt: The average FICO score is 715, indicating "good" credit. However, the average household carries over $9,000 in credit card debt, with high interest rates making it a significant financial drain.
• Net Worth: The median net worth for American households is $122,000. This figure varies significantly by age, with those under 35 having a median net worth below $14,000, while those 65-74 have a median net worth of $266,000.
• Savings Rate: Americans save, on average, about 6% of their income after taxes, which is often insufficient for major life goals like home down payments or comfortable retirement.
• Retirement Age & Longevity: The average retirement age is 61, but full Social Security benefits aren't typically available until 67. With life expectancies meaning potentially 25+ years in retirement, the average savings are often inadequate.
• Beating the Average: The video emphasizes that improving one's financial situation doesn't require exceptional circumstances. Consistently saving more than 6%, avoiding credit card debt, and investing prudently can put individuals far ahead of the average.