Are You on Track Financially? A Look at the Average American’s Finances

When it comes to personal finance, most Americans want to know two things: are they on track for their goals, and how they’re doing compared to their peers. I know more than you. And while comparison should not be used as a way to judge yourself or others, it can be a very valuable tool to know if you’re ahead, behind, or right in the middle where you need to be. And boy, let me tell you, when we heard these numbers for ourselves, we were shocked to find the truth about where the average American stands financially.

We’re going to look at where the average American stands in each of these key categories, including some pretty shocking net worth stats at the end, and what you can do if you’re behind in any of these areas. A quick note before we start: we’re going to be using the median for these since that’s generally a more reflective figure of where the average American stands.

The first area we’re going to look at is one where most people think they need to focus most of their attention, but the truth of it may actually surprise you. You often hear that your income is your most powerful wealth-building tool. And while that is true, it comes with an important caveat: you have to be responsible with utilizing that income in order to build wealth. And we’ll talk about some of those strategies later on.

But first, the numbers. The median single income in the United States is just under $62,000, according to recent data from SoFi. The median household income is slightly higher, with data from Yahoo Finance reporting it at around $75,000. We wanted to get income out of the way early on for this video because while, yes, it is a key element to building wealth, it’s largely correlated to factors like where you live and even your age, depending upon where you are in your career.

Don’t mishear me though. You obviously have control over your income. Side hustles, job changes, education, or just putting in the hours can all see your income scale up relatively quickly. But it’s really your behavior that will more likely influence your overall financial health. Statistically, the correlation between income and net worth is only about 0.56, meaning there’s some connection between income and wealth, but it’s not the whole story.

We often see this play out in real life. Some people with high salaries struggle to build wealth because they’re spending absolutely everything they make. Meanwhile, others with modest incomes manage to build impressive net worths over time through careful money management. I’m looking at you, teachers. The key difference? Financial discipline. That’s why we always say discipline is the first ingredient of wealth building.

The takeaway is clear. While measuring your income against the median can inform whether your position is favorable compared to others, your financial discipline and strategic money management play pivotal roles in determining genuine financial success. Being mindful of lifestyle creep, optimizing saving strategies, and maintaining reasonable spending habits often determine long-term financial outcomes more effectively than merely earning above-average income.

So regardless of where you are relative to the average when it comes to income, it’s essential to be a responsible manager of your own money. Unfortunately, this is where we feel a lot of Americans get it wrong—and that’s what the data shows. Debt payments remain a significant aspect of the American financial landscape, impacting monthly cash flow, savings potential, and long-term wealth accumulation.

According to LendingTree, the average American dedicates $819 a month specifically to non-mortgage debt payments. This figure encompasses several forms of consumer debt, each exerting varying levels of pressure on financial stability. Auto loans represent the largest portion of monthly obligations, averaging—can you believe this?—$719 per month. Student loans, another critical debt category, demand an average of $277 monthly. Credit cards are another major drag on finances, with payments averaging $273 a month. Personal loans and other debts were other major categories, and they average $475 and $541 a month, respectively.

These are all debt payments going into someone else’s pockets. You’ll notice that these numbers don’t add up to that $819 total, and that’s just because not everyone has every type of debt. But regardless, keep that $819 in mind. For now, know that if you have less than that going to non-mortgage debts, you’re doing better than the average American when it comes to debt.

When it comes to these non-mortgage types of debts, we ideally would have you be totally debt-free or at least managing that debt responsibly. If it would be considered high-interest debt, we’d want that debt gone. And don’t fall prey to the doom and gloom. You can do this. Because once it’s gone, you can get focused on the next pieces of the puzzle. Oh yeah, it’s all coming together.

This is where savings behavior plays a crucial role. According to the Federal Reserve Bank of St. Louis—the FRED—as of April 2025, the average personal savings rate in the United States is sitting somewhere around 4.9%. Now, it’s important to understand what that number really means. FRED calculates this based on net income, not gross. So if you were to calculate your personal savings rate based on your gross paycheck—that’s what we suggest—the real percentage would be even lower.

Let’s give the benefit of the doubt, though, and stick with the gross numbers just to keep things simple. If the median household income is about $75,000, then saving 4.9% of that equates to roughly $3,700 a year or about $300 a month. This means that even if you make less than the average American, if you’re saving more than $300 a month, you’re theoretically saving more than the average American in terms of real dollars. This is a huge accomplishment.

Looking at these numbers, it’s clear that many Americans have significant room for improvement in their financial habits. The relatively low savings rate of 4.9%, combined with substantial non-mortgage debt payments averaging around $819 a month, suggests that many households are struggling to build long-term wealth despite earning decent incomes.

However, this also means there’s tremendous opportunity for those willing to buck this trend. And we know, thanks to the Survey of Consumer Finances, that the average American has lots of room to grow. And when we look at the median financial assets across all age groups, we see the unfortunate results of this undisciplined savings behavior. And again, be prepared—these numbers are shocking, to say the least.

These numbers reflect what the average American has invested by age across accounts like 401(k)s, IRAs, and even their brokerage accounts. Americans in their 20s have a median invested balance of around $20,000. In their 30s, it jumps to $34,000, while 40s and 50s hover around $55,000 and $70,000 respectively.

These figures paint a concerning picture in regard to Americans’ retirement readiness. With median invested assets of just under $70,000 by their 60s, many Americans are significantly underprepared for retirement. This shortfall can be attributed to several factors that we’ve already discussed earlier: the low 4.9% savings rate, the high monthly debt obligations averaging around $819, and potentially prioritizing immediate consumption over long-term financial security.

The gap between recommended retirement savings and actual median assets suggests that many Americans may face significant lifestyle adjustments in retirement or may need to work well beyond the traditional retirement age. By focusing on reducing debt, increasing savings beyond the national average, and maintaining disciplined financial habits, you can position yourself ahead of these median figures.

Remember, the goal isn’t just to beat the average. It’s to secure your own financial future. Whether you’re ahead of the curve, behind the curve, or right on the curve, the key is to keep making intentional progress toward your financial goals.

If you want to see our full breakdown of net worth by age to see some other savings benchmarks, I want you to click right here. And as always, keep building towards your great big beautiful tomorrow. Small decisions can have huge impacts.