20+ Spending, Budgeting & Money Management Statistics in 2022

What is your approach to money? Do you have a budget, or do you go with the flow? According to recent research and money management statistics, roughly 44% of Americans don’t have a budget. Only 38% of those who do have a budget follow it,” according to recent studies. Read on if you want information about improving your money management abilities. Take a look at these money management statistics to see how income levels influence people’s financial behaviors. You might be shocked by what you find!

Key Money Management Statistics

The following facts are worthy of your attention.

• Only 30% of Americans prepare a long-term financial plan that includes savings and investment objectives.
• Those who make at least 75,000 dollars per year are most likely to create a budget.
• Americans have over $1 trillion in credit card debt, according to the Federal Reserve’s 2018 report.
• The outstanding vehicle loan debt in the United States was $1.22 trillion in 2018.
• Approximately 66.7 percent of Americans have problems managing their expenses and savings.
• When it comes to investing and saving for the future, there’s a lot of confusion. According to a new poll from Bankrate, around 60% of Americans who use financial services feel confident understanding how much they should spend and save for later. In contrast, only 44% percent felt the same way about those without financial advisors.
• According to a 2014 poll conducted by Northwestern Mutual, 40% of American adults believe that while financial planning is as essential as a medical checkup, it is not their favorite activity.
• Americans spend $1,048 on holiday decorations, food, gifts, and shipping in the winter.
• According to a recent survey, 80% of Americans feel that their financial planning is insufficient.
• The percentage of people who save 10% or less of their earnings is now 9%.

Americans’ Financial Planning Statistics

This part of the report provides statistics on Americans’ financial planning.

• According to a recent poll, most American adults with an advisor are more than twice as likely to have a balance between expenditure and saving than those without.

Individuals with a financial adviser were more likely to report that it was simpler to maintain a correct balance between buying and saving. The fact that 60 percent of people without an advisor were more inclined than 37 percent of those with one to identify debt reduction as their top objective may be the fundamental cause for this disparity.

• Over 60% of Americans with an advisor felt very financially secure, compared to only 21% without one.

It was discovered in the 2021 Planning & Progress Study by Northwestern Mutual that those who utilized financial services felt more financially secure than those who did not.

• According to a recent survey, two out of three individuals with financial planners consider themselves disciplined financial planners, while only 75% of those who do not have a professional money manager feel the same way.

Finally, financial advisors assist their customers in some capacity by becoming disciplined financial planners. Over 70% of those who worked with an adviser said that their plan had been created to withstand market cycles instead of just 29% of those who did not work with an advisor who made the same claim.

• 55% of Americans who have a financial advisor believe they would work past retirement age if they want to, while 41 percent believe they will be compelled to do so by necessity.

The situation is reversed for those who don’t have a financial adviser, with 61% intending to work after retirement due to a lack of other options. According to the 2018 Planning & Progress Study results, Americans who interact with financial advisors had better levels of retirement preparedness, planned spending, and financial confidence than those who did not engage with financial professionals.

• According to a recent survey of 2,000 Americans, only 20% are confident in their ability to create and maintain a budget. Only 6% of respondents said they could do without some or all debt since it motivated them to save and invest more. More than half (56%) of those who do not have a financial expert felt stressed, irritated, angry, or sad.

People who did not consult with financial advisors were more likely to feel nervous about confronting their financial circumstances (17 percent), eager to discuss it until they were forced to, frustrated by their money problems (9 percent), and unable to see the value of planning.

• According to the 2021 poll, 34% of Americans had not spoken with anyone about financial planning.

Planning is considered one of the top five roadblocks to having a secure retirement.

• When it comes to making life-altering decisions affecting their financial future, like buying a home or investing, 64% of Americans turn to someone for advice. When people are facing an economic crisis, 25% seek financial guidance.

Most individuals in the United States seek financial consulting due to necessity.

Spending and Budgeting Statistics

Making a budget is an excellent method to keep track of your money, especially if you spend and consume it. It aids in the prevention of runaway spending and promotes discipline and attention to the long-term financial objectives.

Americans’ financial behavior is revealed in this section’s statistics.

The typical American spent $7,923 on food in their budget, $20,091 on housing, and $7,296 on personal insurance and pensions.

According to the Bureau of Labor Statistics, more money was spent on housing than food in the United States in 2018. Food got $4,464 out of $19,822, while meals at home and away from home received $3,459. Groceries account for approximately 56% of the typical American family’s food expenditure; dining out accounts for 44%.

The government provides housing funds to individuals and families so they may pay their rent and other fixed costs such as taxes, utilities, maintenance, rent, and mortgage payments. Rent and mortgage payments account for 33% of overall housing expenditures.

The Social Security payroll tax is the leading financial burden on personal insurance and pensions. This group covers additional costs and pension payments, and life insurance premiums.

• The average household’s transportation budget was $9,761, far less than the $26,842 spent on health care and the $3,226 on entertainment.

Only one area received more money: transportation, which came in second. Transportation was the only area to receive increased funding, with $4 billion allotted. Other than vehicle expenses, the transportation budget included insurance and public transit costs and fuel, maintenance, and financing charges. In the United States, a typical vehicle costs over $30,000. The average automobile cost in Mexico is less than $9,500. In 2018, automobiles were among the most expensive purchases made. The Federal Highway Administration (FHWA) estimates that transportation expenditures will reach a record high of $2.29 trillion in 2020, representing about 21 percent of gross domestic product (GDP).

The health insurance vote head is in charge of premium rates, medical treatments, pharmaceuticals, and other medical supplies. Insurance covers around 69 percent of total healthcare costs.

Entertainment expenses cover both in-home and out-of-home entertainment and pet care expenditures.

• The clothing and services budget is $1,866, compared to $1,407 for education, $1,888 for charities, and $768 for Personal care products and services.

More money was allotted to clothing and services than to educational institutions. Personal care products and services received the least amount of funding. The quantity of money donated to charity decreased gradually, from $2,081 in 2016 to $1,873 in 2017, then rose slightly to $1,888 in 2018.

• According to a recent poll, 30% of Americans have a long-term financial plan that specifies detailed savings and investment goals.

According to 2021 research, the only Americans who made total budgets were those with a college degree, independents, republicans, and those making more than $75,000 per year in income.

• The most popular method of financial management among American households is online programs, which account for 36 percent. An accountant or a certified financial planner is used by 24% of individuals.

In other words, Americans are somewhat more inclined to utilize a computer or online financial software to handle their finances rather than the help of a certified financial advisor.

• On average, Americans spend 1,048 USD on winter holidays.

Americans spend more money during the winter holidays than at any other time. The following sums are spent on gifts for family, friends, and coworkers: $659 on presents for family, friends, and coworkers; $227 is spent on food and décor; and $162 is spent on miscellaneous items that are not gifts.

Debts and Loans Statistics

This area will concentrate on statistics on loans and debts.

• By the end of 2016, the United States’ outstanding debt was $1 trillion.

According to the Nilsen Report, a journal for the card and mobile payment industries, only 650 billion USD of the $1 trillion debt was subjected to financial penalties, whereas 1.407 trillion USD of student loan debt was subject to financial penalties. By the end of 2016, there were 157 million Americans with outstanding credit card debt, compared to just 44 million with outstanding student loan debt. This implies that in 2016, almost four times as many people had credit card obligations as students did with student loans.

• According to a United States Census Bureau survey, around 62.4% of American adults have credit card debt balances against 17.5% of individuals with student loans.

Even though student loan debt is a severe problem for borrowers, more Americans are now buried in credit card obligations. Student loan debt is currently the second most prevalent source of indebtedness after house debt.

• In 2016, the average auto loan financing for new cars was $28,667.30 compared to $17,241.59 for the average used car auto loan financing.

Last year, the average monthly vehicle loan payment was $499, up from $483 in 2013. In 2014, 62 percent of automobile loans had more than 60 months, with 20% having durations ranging from 73 to 84 months.

• More than 40 million Americans will have student loan debt by 2018.

More than half of all students who graduate with student debt owe more than $50,000. According to the Institute for College Access & Success (TICAS) study, 17 percent of bachelor’s degree recipients had total student loan balances of at least $100,000 in 2016. The proportion was nearly three times higher in 2000. More than 18% of borrowers who began payments in 2014 owed more than $50,000.

• In 2020, the debt reached 10.04 trillion USD in the fourth quarter, up from $13.95 trillion in 2019.

The mortgage balance increased by $182 billion in the fourth quarter of 2020. The total housing debt has now reached $10.39 trillion, more significant than the previous quarter’s total of $9.99 trillion. Newly originated mortgages, including refinances, broke the previous record high of 1.1 trillion USD in March 2017. This surpassed the volumes seen during the historic refinancing boom in the third quarter of 2003 and the $1.28 trillion recorded during the severe recession of 2007 in nominal terms.

• By 2021, the amount of student loan debt in the United States had increased to $1.71 trillion, up from $1.50 trillion at the end of this year’s third quarter.

Approximately 45 million individuals in the United States owe student loans. The student loan default rate is 11.1 percent, with 90+ days behind on payments.

• Auto loan balances are anticipated to reach $1.36 trillion in 2020, up from $1.16 trillion in March 2019.

Despite the epidemic, auto vehicle loans grew in number in the United States.

• In the third quarter of 2021, almost 186,000 bankruptcy warnings were in the United States.

By March 31, 2021, bankruptcy filings had decreased by 38.1 percent by the end of the year. At around the same time as the COVID-19 epidemic in March 2020, this sharp drop occurred. Annual bankruptcies filed in March 2021 were 473,349 cases, a decline of 88% from 764,282 in the corresponding month a year earlier.

Savings Trends in the US.

Statistics in this section reveal savings trends in the US.

• As of February 2017, the average personal savings rate in the US was 5.6%.

According to recent data, the typical American household saved just over half of what they should have saved. The personal saving rate, according to experts, should be at least 10% of income.

• The personal saving rate in the United States decreased from 19.8% in January to 13.6 percent in February 2021.

Personal savings rates have been declining since their peak of 18.7% in 1960, when they were at their highest point since 1950.

• According to a 2019 poll, 64% of Americans were unprepared for retirement, with more than half (58%) reporting not caring.

According to the GO Banking Rates study, 13.7 percent of Americans have no retirement savings, while 28.6 percent have less than $10,000 in retirement funds. 27% are more likely than average to have no retirement savings. Even though most millennials have started saving for retirement, they are only 6 percent more likely than previous generations to do so. Generation X had 63% with over $10,000 in savings and 40% with more than $100,000.

Demographic Financial Management Statistics

The following figures summarize financial management tendencies across various groups.

• In 2012, millennials were 43% more likely than young people to have outstanding educational debt.

Students have been taking out more extensive and more outstanding student loans due to the rising cost of higher education. Student loan debt concerns are more widespread among millennials than in any other generation.

• By 2016, 58% of millennials saved for retirement, compared to 55% of boomers and 65% of Gen Xers.

When it came to retirement investing, millennials fell between the baby boomers and Generation Xers. Generation Xers were more likely than any other generation to save for retirement.

• Almost 60% of millennials had less than $10,000 saved for retirement in 2016 compared to 50% of Baby Boomers.

Even though millennials have had less than 20 years to build their retirement assets, they are not too far behind many of their predecessors who are just approaching retirement.

• According to a study by ING, about 60% of millennials utilize costly credit card behavior, whereas 43% of older working-age people and 54% of young people did so in 2009.

Many millennials make long-term financial decisions that are both pricey and irreversible. Individuals who have retirement accounts have taken out loans or made hardship withdrawals from their accounts in proportion to their income. Even more worrying, just 36% of millennials know how much money they will need to save for retirement.

• In 2018, the percentage of millennials who had a reserve for unexpected expenses was 41%, compared to 30% in 2009.

Millennials are less likely than older working-age people to put money away for emergencies. However, they were more so than their 2009 counterparts. Young people are particularly susceptible to financial fragility. They worry due to low levels of debt, lack of savings, and high-cost money management techniques, which are common among millennials. Two-thirds of millennials (64 percent) said they were very concerned about their finances, and three out of four (75 percent) reported being anxious or stressed about money. If they needed to in an emergency, 68% of millennials could not come up with $2,000 in 30 days.

• According to a recent report, the average amount of student loan debt incurred by millennials is $30,580.

Millennials should put debt reduction first since this will free them from the anxiety of monthly loan repayments. This will enable Millennials to build up their savings to 15 percent of their salaries, allowing them to retire with more than $1 million.

• According to a CNBC story published in 2021, the average American will have $90,460 in debt by 2020.

Many other consumer debt solutions were described, including credit cards, personal loans, mortgages, and educational loans. Generation Z’s average amount of debt will be $16,043 in 2020; millennials’ debt will be $87,448; Generation X’s debts will be $140,643; baby boomers’ debts will be $97,290; and the silent generation’s debts will be $41,281.

Final Thought

Your financial situation has the most significant impact and permeates every aspect of your life. Regardless of how well you compartmentalize other aspects of your life, your buying capacity and purchasing power will eventually leak through to define who you are in the market.

Even if you try to hide from your financial problems, they will find you in the end. As a result, money management and financial data are critical. A comprehensive personal and national overview of money management statistics will allow you to stay up with the current trends in your immediate area, ensuring that you are not caught off guard by how the economy is shifting.

A financial counselor may be able to assist you in keeping your financial life on track. Saving and spending should be done in a reasonably balanced way, and the recommendations and assistance they give will help you maintain that balance.

Budgeting is an important stage in financial planning. A budget helps us decide how we want to spend our money. Making a budget serve as a financial roadmap that you may follow throughout your financial life. It allows us to monitor and regulate our expenditures.

Statistics for this article were gathered from the following sources:

Gallup

Debt.com

Northwestern Mutual

The tokenist

Northwestern Mutual

Pwc

The tokenist

Gallup