13 Money Stats ALL Americans Need to Know in 2024

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Uncover the Hidden Truths About What’s Truly Going on in People’s Financial Lives

Have you noticed your paychecks evaporate before your eyes?

Does that monster credit card balance just never seem to budge? Are you putting off retirement savings because you can’t imagine how you’ll ever afford to quit working? If so, you have something in common with most Americans today.

The financial world has changed drastically in the last several years. Inflation is up, interest rates are higher than they’ve been in years, and we’re all feeling it. As Money Coaches, we get to peel back the curtain and see what’s really going on inside our client’s financial lives. I’ve compiled the latest statistics of what is really going in 2024, and it isn’t pretty. This is a great time to compare these statistics with your own numbers. 

13 Money Stats you Need to Know: 

1. Americans have a spending problem.

Did you know that 83% of Americans spend more than they make each month? We get the inside peek into so many people’s financial lives. We 100% agree with this. It’s so easy to overspend for a myriad of reasons. Most often we see that the biggest reason is lack of clarity

If you don’t know you’re overspending every month, you’ll keep doing it. So many people don’t have a good pulse of where their money is going. When you have clarity, you can make better decisions. The first thing we help our clients do is gain clarity of their financial situation, then we can make a plan and take action.

Statistics from Nerd Wallet

83% of Americans spend more than they make. 68% of Americans have less than $1,000 is savings.

2. Most Americans are broke.

68% of Americans have less than $1,000 in savings. This is why so many people are drowning in debt and living paycheck to paycheck. Saving for expected and unexpected expenses breaks the debt cycle, and if 68% of Americans don’t have $1k saved, they’re relying on debt to get by.

If you are part of this statistic, the first thing you need to do is get clarity on your financial situation. When you discover where your money is going, you’ll be better equipped to save. When we work with our clients, the first thing we focus on is clarity. We both need to get a clear picture of where they are at, so we can make the changes necessary to reach their financial goals.

Statistic from CNBC/Bankrate 2023 survey

3. Home prices have increased by 32.6% since 2020 (and some data says up to 43.2%).

The cost of housing has skyrocketed in the last several years. In fact, housing prices are rising three times faster than wages. No wonder many say we have a housing crisis on hand.

It’s no surprise that so many people are struggling with the housing and rental market. Many people are having a seriously hard time finding a place to rent or buy that they can afford. Many people are struggling to sell their home with the higher interest rates. We know many people who have moved in with family members to save costs. 

James and I have an inside peek into our clients expenses. For most people, housing costs take up a massive portion of their overall spending. The challenging thing we run into with our clients is that there aren’t really many cheaper alternatives for housing, and no we don’t recommend living in your van. Many people feel stuck. This is why it’s so important to get intentional with our money. 

Statistics from S&P Case-Shiller national home price index and Fortune.

Housing prices are rising and home prices have gone up since 2020.

4. Homeownership looks very different than it did a decade ago.

The average age of a first-time home buyer in the U.S. in 2022 was 36 years old. That’s the latest statistic, but my guess is that it would be even older today. In 2014, the average first-time home buyer was 31. 

James and I bought our first home in 2010 when I was 23. At the time, it didn’t feel to us like we were young. We bought at a time when house prices were low and so were interest rates. I’m incredibly grateful that we could get into the housing market early in our married lives. But if my 23-year-old self was living in 2024, I’m 100% sure we wouldn’t be able to pull it off. It doesn’t surprise me that people are buying their first home later and later in life.

The average home price in America in 2024 is $390,000, and the average mortgage debt is $310,000. With an average current interest rate of 7.4%, the monthly interest and principal payment would be $2,006. When you add the average tax amount of $250 a month plus $100 a month for homeowners insurance, the true mortgage payment is $2,356. The mortgage amount does change drastically based on the down payment, location, credit score, and type of loan.

Statistics from National Association of Realtors 2022 Profile of Home Buyers and Sellers and Forbes.

5. Rent has increased drastically.

One of the challenges renters have is not having a guaranteed rent price. Landlords and companies can increase rent according to the market. Apartment rent has gone up 25-30% since 2020. That’s a massive increase that can put many people in a bind.

The average rent rate in the U.S. in 2024 is $1,876 per month. A one-bedroom apartment on average rents out at $1,589 a month. A two-bedroom apartment rents out at $2,100 a month. And renting a home isn’t a cheaper option.

Renting a home has increased by 25-35%. The average monthly rent for a home in the United States in 2024 is $2,365, while the average monthly mortgage payment is $1,832. That’s a $533 a month difference. The perk of renting is that you don’t have to pay for an upkeep or repairs. 

Statistics from Apartment List National Rent Report, Zillow Rent Index Annual Data, and Moody’s Analytics Rental Market Outlook Data

Apartment rend has gone up drastically since 2020. Average rent has increased in 2024.

6. Debt is easy to get into, and much harder to get out of.

Debt is something we see frequently with our clients. It’s often because of little purchases that add up. We’ve been noticing a trend of more people going into debt from buying necessities like groceries and gas. 

Consumer debt in America is $103,000 per person. This includes student loans, credit card debt, personal loans, car loans, mortgage, etc. 

If you’re wanting to get out of debt, the first thing you have to do is stop getting yourself into more debt. When you live below your means, then you can start tackling the debt of your past. 

Getting out of debt requires a plan. Making minimum payments will keep you in debt for years and will cost you an unbelievable amount of interest.  We walk our clients through four different methods to pay off debt, and run all the numbers. It’s empowering when our clients see their debt-free date and how much interest they would pay. They’re able to see their reality and make changes. We use a tool to plug in our clients numbers. 

A free resource that helps you get a general idea of a few of the debt-payoff methods is unbury.me. You can plug in your debts and get an idea of when you’d pay them off and how much interest would be paid. You can’t accurately put all the information in, so it is a more general guide.

Statistics from Business Insider

7. The current average credit card interest rate is 27.91%.

Credit cards are one of the most common debt sources. It’s easy to spend on a credit card, and then when the bill comes in, you can’t pay it in full. This begins the revolving credit cycle that so many people struggle with. 

The average credit card balance is at a record-making high: $6,360. The current average credit card interest rate is 27.92%. We see rates like this and some that are over 30% with our clients. It’s really hard to knock out debt with interest rates this high. Having a plan and running the numbers is key. 

Paying minimum payments forever isn’t a solution. We’ve had clients who wouldn’t be debt free for over 1,000 years. Now, that’s defeating. If you keep doing what you’re currently doing, when will you be debt free?

Here’s the thing, most people have NO idea. Credit card companies are making good money off of most of us. They’re not making it easy for you to see your debt-free date. They want to line their pockets with your interest.

You gain so much clarity when you see when you’ll be out of debt and how much interest will be paid. We love walking our clients through this process. It’s eye-opening and empowering. Most people who have debt just view it as a payment, and don’t have an idea how much interest they’re paying over time.

Knocking out debt can be done by a variety of ways. It’s really important to evaluate your situation and choose a plan that excites you and is sustainable. Look at the possible debt-free dates using different debt-payoff methods. 

Statistics from Forbes and CNBC

Credit card balances are at a record high and credit card interest rates in 2024 are 27.91%

8. Student loan debt is a major problem.

The average student loan debt is $39,381. Many of our clients have double to five times that amount. So many people were banking on student loan forgiveness, but it didn’t pan out as many hoped. There has been another surge of hope for student loan forgiveness, but only .3558% of people with student loans have gotten this forgiveness. The odds aren’t in your favor. 

Bankruptcy won’t do a thing to student loan debt. Death is the only way out, and PLEASE don’t take that option. 

If you’re considering getting student loans, try everything possible to avoid them. Apply for scholarships, take the ACT as many times as you can to bring up your score, take college classes in high school, work at a job that pays for your schooling, go to in-state schools or a community college, work and save your money, and the list can go on and on.

If you already have student loan debt, be proactive in paying it off. Having a payoff plan is key. You can apply for the SAVE plan to lower your payments. I’d recommend this if you have other debts you’re trying to pay off aggressively, if you don’t have the money to pay your monthly payment, and it has been a requirement to get student loan debt forgiven. I have worked with some clients that have higher incomes, and the SAVE plan actually would increase their monthly payments.

Statistics from the Experian.

9. People aren’t paying cash for vehicles.

85-95% of new cars and 55% of used cars are financed. Paying interest on a depreciating asset is less than ideal. The average monthly car payment is $770. Many families have two car payments that could likely be $1,540 a month. That’s a massive amount of many people’s take home pay. 

Most people get stuck in the car payment cycle because they want something that is safe and dependable. They don’t have money saved to pay for it, they trade in their vehicles frequently, and  they buy a vehicle that they can’t really afford. This is why the average auto loan debt is $25,936.

The vehicle you drive doesn’t define you. Don’t get sucked into keeping up with the Joneses. You don’t need to upgrade your vehicle when your friends do. When you have no car payment, you’ll be freed up to spend on what matters to you.

Statistics from the 2024 Cox Automotive/Moody’s Analytics Vehicle Affordability Index and Experian.

The average monthly car payment in 2024 is $770 and the average auto loan is almost $26k.

10. Medical debt is sadly more common than we think.

It’s one of the few debts most people have little to no control of. The average medical debt per person is $2,424. One of the key things you can do to help prevent medical debt is to have medical insurance that’s a good fit for you AND have an emergency/medical fund. 

It’s very easy to forget or put off medical expenses. Most of us don’t plan on them, and when they hit, they hit hard. I’ve met several women who are paying off their child years after their child was born. This encouraged me to save up for each of our births. After insurance, our daughter cost $3,500 and that’s with no complications years ago. We saved $5,000 to cover any of the expected and unexpected medical expenses. 

Make sure you have a good understanding of your medical insurance. Paying for out-of-network services will increase your medical costs drastically. Check out which hospitals and urgent cares are in-network BEFORE you have a medical emergency. That way, you’ll know exactly where to go. You can always ask for an out-of-pocket estimate for medical costs.

If you have a high deductible, you’ll need to save extra into a medical fund or boost your emergency fund. For us, we have a medical fund for all of our out-of-pocket medical expenses and an emergency fund.

Statistics from Stanford

11. Loans are very common.

The average personal loan debt is $9,807.  Many people use personal loans for debt consolidation, moving costs, home improvements or repairs, vehicle purchases, and more. Rates vary greatly from 6%-36% APR depending on your credit score and the type of loan. 

Planning ahead and saving for expected and not expected expenses is ideal. If you do have personal loan debt, make sure you have a plan. Look at all the numbers, get clarity on what’s going on. Don’t avoid it. Avoiding debt will not make the problem go away.

Statistics from Bankrate

12. Most Americans aren’t prepared for retirement.

Almost everyone wants to retire someday, but most people aren’t as prepared as they’d like. On average, Americans who are ready to retire have saved up 78% of what they need. This is why so many retired people go back to work or pick up part-time work. In fact, 25% of Americans have no retirement savings.

Time is the biggest factor needed for saving for retirement. The earlier you invest, the longer that money grows. If you’ve been putting off investing, get on it. 

Check and see if your employer has a 401k match. This is the easiest place to start. Look into Roth IRA’s if you qualify. This year you can put up to $7,000 or $8,000 if you’re over 50 into your Roth. If you’re married and maxing out your Roth, you’d be investing $1,166.67 a month.

A great book that breaks down investing is “I Will Teach You to be Rich” by Ramit Sethi. He has some great questions to ask financial advisors before hiring them. Another option is to hire a financial advisor to help you navigate this. 

Statistics from Nerd Wallet and The Motley Fool.

Americans aren't prepared to retire. 25% of Americans have nothing in their retirement.

13. Wages aren’t keeping up with inflation.

The average household income in the United States is $74,580. After taxes, that income looks like $4,683 per month. Cost of living keeps going up, but wages aren’t keeping up. In fact, 81% of Americans say that their income hasn’t kept up with the rapid cost of living.

Statistics from US Census Bureau 2023 and HR Drive

Adding this all up:

Let’s run the numbers on the average 4-person household using all the statistics so far:

If they rent a 3-bedroom home they’ll be paying about $2,365 a month in rent. Their rent is more than half their take home salary. This is the first red flag.

Let’s say they have one credit card that’s carrying a balance of $6,360 at the average rate of 27.92%, the minimum monthly payment would be $211.60. One of the adults has the average student loan debt of $39,381, which is $328.17 a month. They have one car payment of $770 a month. We’ll go on the conservative side and say that one person has the average medical debt of $2,424. That’s $202 a month for a 12-month payment plan. Lastly, let’s add in the average loan debt (not credit card) of $9,807 into the mix. That would be $272.42 a month for the standard 3-year loan. 

When you subtract all of the above expenses from the average monthly take home pay, $533.81 is left. They still haven’t paid for insurance, food, utilities, gas, eating out, clothes, pets, or contributing towards retirement. If they were a homeowner, they’d have $543.81 left over (this is using averages from above). 

The average payments Americans have in 2024 are high. When you include the average rent, credit card payment, Student loan payment, car payment, medical debt payment, and other loans, they equal $4,149.19.

It’s no wonder that 68% of Americans don’t have $1,000 in savings. This is why 83% of Americans spend more than they make every month. No wonder people aren’t contributing towards their retirement like they’d like to. Do the math. It all adds up fast.

This is why it’s imperative to get intentional with your money. Things can quickly and easily get out of hand. You need clarity and a plan. Putting things off, ignoring, and coasting will not work. You’ll only get yourself into a worse position.

There is hope:

If you’re ready to stop stressing so much about money and reach your financial goals, the fastest and most effective way to do that is by hiring a financial coach. You can DIY it, but it will take you longer, and you may leave tasks unfinished. I have a few unfinished DIY projects at my house that have been sitting there for YEARS, and they aren’t complete. Sometimes the cheapest way isn’t the most effective.

We’re like a personal trainer for your money. Just like a personal trainer at a gym assesses the situation and helps their clients work on target exercises to reach their wanted results. We do the same thing. We assess what is really going and help you get the results you’re wanting as quickly and as sustainably possible. 

We show you how to put financial concepts into practice all while working on mindset. Money isn’t just about numbers, there are emotions, thoughts, and behaviors at play. We help you work on weak areas and help strengthen your confidence level. 

If you want to get in the best financial shape of your life, book a free Q&A Session with us. You’ll fill out a little questionnaire to help us have a better understanding of what’s going on. It’s no-pressure. We’re here to help you live the life you want to live without money.

Written By Amberlee Rich

Amberlee is a Money Coach, content creator, podcaster, and avid reader who is passionate about intentional living. She's a recovering couponing addict and aims to help others break free from survival mode. With her husband, James, they're certified financial coaches and have been helping people experience joy with their money for over 15 years.

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