According to the Fed Consumer Finance Survey, the median income of households is now $58,600, an increase of more than five percent from 2013. The survey also revealed that 98 percent of American families own some type of financial asset, such as a savings account, transaction account, or certificate of deposit. Nearly 13 percent of surveyed households also own a business. The Fed also examined whether the growth of online banking was reducing the need for physical banking. It found that 79 percent of online users still visited a local bank branch.
Despite these findings, consumers are still struggling with their financial situations. While the Fed’s data indicates an increase in savings and debt burden, it also shows a decrease in the number of households that have more than $1,000 in savings. In fact, 70 percent of businesses plan to automate their accounts receivable departments. But this may be overstating the problem. The reality is usually less dramatic than the figures suggest. Although some consumers are drowning in credit card debt and using credit cards improperly, the vast majority are managing their debt responsibly.
The Fed Consumer Finance Survey shows that the number of Americans with credit cards has been growing for a few years. In 2007, 27 percent of U.S. families did not own a credit card. While the percentage of families carrying a balance has increased over time, it has been significantly slower than the growth in credit card use. In fact, it has risen only a few percentage points over the last two decades. In the meantime, credit cards are now the preferred method of payment, especially among those who have little or no disposable income.
The Federal Reserve’s recent Fed Consumer Finance Survey shows that the number of homeowners with home equity loans rose by more than two-thirds compared to those without a home. This difference could be attributed to the fact that more households with home equity loans have businesses than those without them. However, the decline in home equity debt is still affecting many small businesses. However, the Fed’s survey also shows that the percentage of businesses with home equity loans increased by 82 percent from 1989 to 2007, which suggests that these small businesses are struggling in spite of the decline in residential real estate prices.
While the median net worth of a U.S. representative was more than nine times higher than the median American, a wealthy candidate’s net worth can be seen as a red flag. The poll also indicates that many registered voters would be less likely to vote for a candidate with high debt. Therefore, the Fed Consumer Finance Survey helps lawmakers understand the concerns of voters about the role of the media in politics. When choosing a candidate, it is important to keep in mind that most U.S. politicians have high incomes, and this is a big problem.
According to the Fed Consumer Finance Survey, the average American household will have an estimated net worth of $65,000 at retirement. This does not include the value of the pension account, which is limited to those who are already retired. However, it is significant that many Americans are chasing the ever-increasing power of inflation. The fact that the average household has a higher net worth than many other people suggests is a sign of a healthy economy.