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Today, I thought it would be fun to look at the average American’s financial situation and how I compare. Feel free to play along with me!
#1. The average American’s gross household income for Married Filing Jointly is $117,795.
I am a bit shocked, as that figure is much higher than I anticipated. I assumed that the figure would be closer to half of that. Clearly, I was mistaken.
How we stack up: Below Average
While I have a nice salary with the government, unfortunately, my adjusted gross income does not come close to $117,795. As many of you know, my wife doesn’t work outside the home right now as she cares for our kiddos and special needs sister.
Check out below to see how you stack up:
| Tax Filing Status | Adjusted Gross Income |
| Married filing jointly | $117,795 |
| Married filing separately | $64,819 |
| Head of household | $35,876 |
| Widow/Widower | $57,577 |
| Single | $34,940 |
DATA SOURCE: IRS STATISTICS OF INCOME, 2014.
#2. The average American household with debt owes $137,063.
Yikes…this a lot of debt. Although to be fair, this includes mortgages, car loans, student loans, and of course, credit card debt.
How we stack up: Above Average
Since we carry no debt, we are safely in the “above average” category.
Related: The Top 25 Cities in the US with Credit Card Debt
#3. The average American gives $1,872 to charity.
The average American gave $1,872 to charity in 2012, which represents, 2.2% of their income. This was a little bit lower than I anticipated, but considering the various things folks are dealing with, this doesn’t seem so bad.
How we stack up: Above Average
We do give more than the average American. However, this doesn’t make us better than anyone else, only fortunate enough to bless others.
#4. The average American has a FICO credit score of 687.
Yikes…this is worse than I expected. 687 means the average American has a fair score. While just shy of good at 690, there is a bit of room for improvement for bettering our credit scores.
How we stack up: Above Average
We are thankful to have a FICO credit score of over 800. If we ever have to get a mortgage again, that should come in handy.
Related: The History of Credit Scores
#5. The average American’s 401(k) balance is $97,700.
Yikes, the average American’s 401(k) balance is now $97,700. Considering that you need that money for retirement, that is incredibly low.
Below is the average American’s 401(k) balance by age:
| Age | 401(k) Balance |
| 20 – 29 | $9,900.00 |
| 30 – 39 | $38,400.00 |
| 40 – 49 | $91,000.00 |
| 50 – 59 | $152,700.00 |
| 60 – 69 | $167,700.00 |
| 70 – 79 | $160,200.00 |
How we stack up: Above Average
I take advantage of the excellent government match that I receive in my retirement savings account. I realize not everyone has it, so I’m grateful to utilize it right now.
Related: How Much Should I Have In My 401(k)?
#6. The average personal savings rate in the U.S. is 2.8%.
In the words of Charles Barkley, That’s Turrrible.
Saving nearly 3% just won’t cut it in terms of future retirement plans. This shows that the average American lives paycheck-to-paycheck, which is way too close to the edge.
How we stack up: Above Average
We have been saving 65% of take-home pay over the last two years. This year, our goal is to increase to 70%. We’ll see how we do.
Related: How the U.S. Compares to the World with Savings Rates
#7. Only 19% of Americans actively contribute to an IRA.
According to the latest TIAA IRA survey, only 19% of Americans actively contribute to their IRA.
Ugh.
Here’s the worst part. Nearly 50% of people say they can’t contribute because they don’t have enough money to save. On the other hand, nearly 20% of people contribute $250 or less.
How we stack up: Above Average
We are fortunate to be able to max out both of our IRAs each year.
Related: How Much the Average American Has in their IRA
#8. The average American’s tax refund in 2017 was $2,763.
Boo.
I fall in the camp of not wanting to give the government an interest-free loan if I can help it. While I’d rather get a little bit back than owing the government at the end of the year, $2,763 is entirely too much in my book.
How we stack up: Above Average
We usually receive a refund below $2,763. I’d rather invest or save that type of money than let the government hold onto it.
#9. The average American pays federal taxes of $10,489.
$10,489 in personal taxes represents 14% of the average household’s total income.
How we stack up: Above Average
The bad news is we pay more in federal taxes than the average American. The good news is that individually, I probably make more than the average American. Personally, I don’t mind paying more in taxes because the more I pay, the more I most likely make.
#10. The average American’s Social Security retirement benefit is $1,294/mo.
Yikes!!!
That means that the average American depends on just $15,600 per year. If they are married, doubling that is just $31,200. I have a hard time imagining that the average American can live off of $31,200 per year, let alone just $15,600 per year, without some supplemental income from their 401(k).
How we stack up: Above Average
Looking at my most recent Social Security statement, we are in line to exceed the $1,294 mark, although, not by much. It’s a good thing that we have so much saved up in our IRAs and 401(k).
If you compare your family to the median household that improves your standing. That is only $53,719 per family. Median means 50% of the people are below and 50% are above you and it isn’t skewed so much by the one pecenter high earners. I was surprised the married filing jointly average was that high.
Thanks for stopping by!!! I was shocked at how high the average married filing jointly income was. Much higher than I ever expected.
I’m also surprised that the average household income filing jointly is so high! But it’s average, right, meaning the highest incomes skew it way upward? I bet the median household income is way lower. We’re about the take on more debt than average with our new house. Bummer, but we could pay it off if we wanted, so I guess that makes me feel better! These are fascinating figures-thanks!
Laurie@ThreeYear recently posted…May Net Worth Update
You’re definitely right Laurie!!! The median income is much lower, roughly by half. The 1% certainly do swing things 🙂
“Turrible”. Funny. 🙂 Love this – thanks for sharing, Rob!!
Hahaha…Charles Barkley makes me laugh. If you google Charles Barkley golf swing you’re in for a treat.
Wait if the married couples filling jointly is crossing 6 figures then shouldn’t the national savings rate be a lot higher than 2.8%? Whaattt is going on?? D:
Lily | The Frugal Gene recently posted…5 Amusing Stories As Stealth Wealth Aficionados
Hahahah….you are absolutely right. It should be much higher, clearly everyone is spending to keep up with the kardashians 🙂
Wow I didn’t know the average household income for a married filing jointly would be so high. I thought it was about 60k or sth. Not bad!
The debt number is a big number. But when you take into account the mortgage, it sounds reasonable to me. Maybe the personal finance picture in the US is not so bleak! 😀
Ms. Frugal Asian Finance recently posted…Hubby Decided To Travel Alone. And This Is What Happened.
Hahaha…I totally agree, especially if the debt number is paired with the income number. I have a feeling though the income number is a lot lower as a median income while I have a feeling debt is still high.
The AGI number is definitely surprising. I would’ve thought to see this number more in larger cities like NY, DC, LA and Chicago. At the same time, it doesn’t correlate to the money in people’s retirement plans and savings rates. The only other place is spending and debt where the numbers would go. Thanks for sharing these statistics!
Simple Money Man recently posted…My Finances Are On Track So What’s Next?
Glad you liked the article!!! I was definitely surprised with some of the stats as well. Definitely eye opening.
Really surprised the average income is so high. The rest don’t surprise me. It further indicates the problems in this country around finances is statistically at least more behavioral then circumstance.
I totally agree with you. We don’t have a math problem, most people get the numbers, we have a behavior problem. Too many people are spending beyond their means.
Great stats. I’m doing great except I still carry a huge mortgage debt.
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I feel like most people carry a large mortgage these days. Housing is crazy expensive right now.
Nothing really surprises me here Rob. Mostly you hear about average household income which is likely more in line with 50-60k. A good marriage is financially beneficial. Dual incomes and shared expenses go a long way. Tom
Tom @ Dividends Diversify recently posted…The Tussle with my Main Hustle | Part 2
Thanks for sharing Tom!!! I definitely agree that a good marriage is incredibly beneficial financially 🙂
I would be interested to know how the different the median values are. Sad how low head of household numbers.
Disagree on the tax return number. Interests rates are so low right now that I loss very little from giving the government a loan. However, it has been a great forced saving mechanism for my family. We use tax refund towards savings not spending.
Thanks for sharing Buckeyecub!!! I’ve heard people that use it as a forced savings mechanism. I personally don’t like it for myself but it sounds like it’s working for you and your family that’s awesome to hear. Thanks for stopping by!!!
I guess I’m pretty average… no shame!
Hahaha…no shame at all 🙂
Haha, I like the Barkley reference. That could also go for the average credit score. I would have thought that credit score would be at least in the low 700s. Hopefully that number will go up soon.
That household debt seems about right since it includes mortgages. I would guess the average debt in HCOL areas is hovering close to $200K.
Kris recently posted…Expense Chronicles – May 2018
I totally agree with you Kris!! I would have thought the average FICO score would have been higher, especially with a robust economy. I’d hate to see what it looks like if we go back into a recession.
As a South African it is difficult to compare although interesting to try. It is also difficult to know what take home pay is due to the complexities in federal and state taxes.One thing that I thought would be much larger is 401k balances especially after the last decade the US has experienced.
Thanks for stopping by!!! I’m with you I thought the 401k balances would have been much higher than they are. It’s a little disappointing…
Couple of things:
1) This is so stupid to even ask, but where do you find your SSI statement?
2) Even though I try to tax advantage my W4, I still end up a with a pretty healthy return (well over the average). I am a high earner, a homeowner, and a somewhat charitable person. I wonder if that affects things.
Thanks for stopping by Heather. You can find your SSI statement at https://www.ssa.gov/myaccount/ It’s wonderful that it’s at your fingertips online now 🙂
We are above average in most categories except for tax return and social security. I would love our debt to be below average
Haha…I’m rooting for you to get your debt below average. Having debt stinks 🙂