The Average American & Their Finances

Why do we at A Step Above Style hate the idea of being average? You’ll find out a few of the reasons in today’s post.

Below you’re going to see a overview of the average American’s finances separated by category.

Because these are averages, the numbers you see below are people who followed the status quo, and did certain things with their money because “that’s what they said I’m supposed to do”!

Now you’ll get to see for yourself where taking someone else’s word for things will lead you.

Let’s begin.

Cars

• Average monthly car payment for new cars is $700
• Average monthly car payment for used cars is $525
• Average cost of car insurance is $148
• 85% of new cars purchases are financed (as of 2019)

Median Income

• Median household income in America is $70,784. This is the total amount of 2 working adults in a single household.

Credit Card Debt

• Average credit card balance is $5,805

Savings

• Median savings is $5,300

Student Loans

• Average federal student loan debt is $37,574
• Average private student loan debt is $54,921
• 20 years after entering the school of the students choice, half of borrowers still owe $20,000 in outstanding loan balances

Housing

• Average mortage is $1,672 as of 2021
• Average rent is $1,362

The Problem With Being Average

Do you want to end up in the same financial mess as many Americans?

If so, simply take the mainstream financial advice you’ve always heard.

1. Graduate High School

2. Go to a 4 year college. Because degrees matter.

3. After graduation get a “good” job in your field of study.

4. Work for a while, then find love and get married.

5. Have kids sooner rather than later because you don’t want to be “old” parents.

6. Now that you have multiple children, you’ll want to move into a house so the kids can have a yard to play in. Besides, living in a apartment is just throwing away money right? Right?

7. Start saving up for your children’s college. Because degrees matter! Right?

This is advice we have all heard before. Some of it is harmless, while other parts can prove to detrimental to your finances.

60 years ago, what type of transportation and technology was relevant to the day? Probably the vehicle you see above.

But in 2023, what type of transportation technology is relevant for the day? Probably the vehicle you see below.

As times change, so to must our approach to achieving our goals. One thing you should keep in mind is

The advice found above may have been relevant in previous generations, but things are not as “cut and dry” in 2023.

Sometimes the advice we receive from our grandparents (and even our parents) isn’t applicable to our present day economy and situation. They love us, but some advice is simply outdated.

The problem with the aforementioned advice is this.

You’d graduate High school at age 18, and sign up for thousands of dollars worth of student loan debt with the help of a college’s financial advisor.

You’re not old enough to drink alcohol, but somehow you just signed up for 30k+ of student loans. Because you focused only on grades, you’ll graduate with zero work experience. Making it even harder to get a job in your field of study.

Once you do find a job, you’ll feel the pressure to get a house. Because renting is a “waste of money” no matter what. This is totally untrue of course, but it won’t matter as this is just what the average person does.

If your wedding costs what the average Americans does, it’ll total up to about $28,000.

Toss a few kids into the mix, and you have even more financial obligations.

Conclusion

We hope you have found today’s post insightful.

If there is anything we want you to remember from today’s post it’s this:

The choices you make will impact your future. Don’t just go with what you’ve always heard. You should do your own research rather than let others decide for you.

Until next time, yall have a good one.

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Posted By: Jeffrey Chark · In: Smart Money