How Much Money is Out There with the Average American?

September 22, 2022

How much money is out there with the average American? Probably more than you think! Find out in this week's Arista Advice.

Full Transcript:

Hello, welcome to Arista Advice! Question of the week is: "Paul, how much money is out there with the average American?" Well, we have some cool data and historical information that you may want to know.

At the end of Q1 2022, the average US consumer total net worth is a $167 trillion dollars. As you can see on this slide right here from JPMorgan, the biggest asset in a US household is other financial assets at 41% - closely held businesses, family businesses, real estate, raw land, other financial assets. Their second biggest asset is their home coming in at 26%. The third asset is their pension fund, their 401(k), 403(b), 457, IRA, Roth, and then is their deposits at the local bank that represent 9%.

So do US consumers have money in the bank? Yes, it's the fourth largest asset, or 9%, of the US consumer balance sheet. It's just helpful to see the wealth that's out there. Let me share with you one last slide. As you can see right here, the household debt service ratio going from 1980, it used to be at 10.6%. Then in 2008 and '07, it was 13.2%, and there was a pop in the housing market. Now the household debt service ratio, credit card house payment, card payments represents 9.5%, the lowest in the last 40 years. So consumers in the US, their debt service levels, are lower than years past.

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