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Facts & Figures 

NFI Research | General Statistics | Schools and K12 School-Aged Children | Young Adults (College Age and Beyond) | Financial Literacy Education (by Schools, Corporations, etc.) | Sources

NFI Research

General Statistics

  • Only a quarter of Americans feel well informed about managing household finances.
  • Between 25 and 56 million Americans do not have a bank account.
  • From 1992-2000, disposable personal income rose 47 percent, but personal spending climbed by 61 percent. At the same time, the overall personal savings rate fell from 8.7 percent of disposable income in 1992 to zero in 2000.
  • At the end of 2002, American households owed an average balance of $8,940 on all credit cards, up 36% since 1997; this figure represents an increase of 173% over the previous decade.
  • 98% of banks responding to a Consumer Bankers Associations' survey said they sponsor financial literacy programs and/or support such efforts through partnerships.
  • Personal savings as a percentage of disposable personal income decreased from 11.2% in the early 1980s to 0% in the first and second quarters of 2005.
  • In a 2003 survey, the median reported value of all household retirement savings was only $40,000, and 25% of those surveyed had no retirement account at all. Only 47% of Americans are either somewhat or very confident that they will have saved enough for retirement.
  • Consumer bankruptcy filings in 2003 hit a record of nearly 1.7 million, or an average of nearly one in every seven households over the past decade. The bad debt costs the average U.S. family more than $500 annually through higher consumer prices.
  • Average credit card debt per U.S. household rose from $2,985.00 in 1990 to $8,562.00 in 2002.
     

Schools and K12 School-Aged Children

  • Based on a national survey of high school seniors, America's teenagers as a group in 2004 score a failing grade in basic financial literacy knowledge.
  • Teenagers are active consumers, spending $175 billion in 2003, with 21% having their own credit card or access to their parents' credit card, and 16% holding their own ATM cards.
  • 10% of teens 12-19 have their own credit card; 38% believe credit card use should be limited to adults only.
  • American children, teens and young adults (ages 8-21), earned about $211 billion in 2003, down from $231 billion in 2002. Survey results show that this group is spending at a rate of approximately $172 billion per year and is saving at a rate of $39 billion per year.
  • Fully 71% of teens report learning about money management from parents, and 35% say they've learned about the topic in school.
  • Among parents with children 5 or older, only 26% feel well prepared to teach their kids about basic personal finances.
  • Fewer than half of respondents feel they are a good role model for their children regarding saving and spending.
  • Saving versus spending was talked about in 57% of homes. Fewer than 40% of parents said they talked about credit cards, loans and debt, and their own family finances with their kids. Even less talked with their children about how to invest their money.
  • More than 70% of parents say they have spoken with their teens about credit and using credit cards wisely, while less than 44% of the teenaged children of those respondents say their parents have talked to them about credit cards.
  • 53 % of parents agree that their child thinks "money grows on trees."
  • 76 % of parents surveyed said their high school student does not have a budget.
  • 88 % of parents feel it's important to monitor their child's spending and guide their money use.
  • More than 83 % of high school and middle school students expect their parents to join them on back- to-school shopping trips, but an overwhelming 91 % say their parents have not taken the time to discuss their back-to-school finances with them.

Young Adults (College Age and Beyond)

  • Young adults between 20 and 24 represent the fastest growing segment of bankruptcy filings; in fact, more people will file for bankruptcy in 2004 than will graduate from college.
  • The average credit card debt among graduate students who carry cards is $7,831 per student, an increase of 59% over 1998's average debt of $4,925.
  • Consistent with 1998 and up from 2000, graduate students carry an average of six cards each, and 96% of all graduate students carry credit cards.
  • Credit card debt among young adults between the ages of 25 and 34 has increased 55%, while credit card debt among the youngest adults, between 18 and 24, has skyrocketed 104% since 1982.
  • Americans aged 25-34 have the second highest rate of bankruptcy (just after those aged 35 to 44). The bankruptcy rate among 25-34 year olds increased between 1991 and 2001, indicating the GenXers were more likely to file bankruptcy than were young baby Boomers at the same age.

 

Financial Literacy Education (by Schools, Corporations, etc.)

  • Thirty-eight states reported personal finance standards in 2004, up from 31 states in 2002. Twenty-one states required explicitly that the standards must be implemented.
  • Seven states, up from four in 2002, made personal finance a requirement for high school graduation in 2004. Nine states require testing in personal finance.
  • 80% of parents believed that schools provided classes on money management and budgeting.
  • 43% of parents believe that schools should be doing more to educate kids about money.
  • 91% of respondent banks are addressing the issue of "consumers need to understand how lenders use credit scores and evaluate creditworthiness” in their financial literacy programs.

Sources