While pay transparency laws are becoming more common, money is still a taboo topic for many people. If you don’t talk openly about your income, debt, and spending, you may be wondering how your financial fitness measures up.
Here are some figures to help you explore how you’re doing compared to the average middle-class American.
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1. You have more than $5,300 in your savings account
The median amount for American savings accounts is $5,300. If your savings account has more than that — you’re sitting pretty compared to the average middle-class American.
Despite economic waves over the years, Americans have saved more each year than the last since the Federal Reserve started tracking this data in 1959.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. You have more than $2,900 in your checking account
The median for American checking accounts sits at $2,900. This is the account where most people receive direct deposits and pay rent and grocery bills. If you have more than that after paying all your obligations, you’re likely doing better than the average middle-class family.
3. You’re going to inherit more than $60,000
Over 20% of U.S. households receive an inheritance, according to the Federal Reserve’s Survey of Consumer Finances in 2022. The average American inherited nearly $60,000. That’s not to say everyone or even the majority of people will inherit money, but if you do, and it’s over $60,000, you’re doing better than average.
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4. Your raise in 2023 was more than 4.4%
According to a survey from the U.S. Bureau of Labor and Statistics, raises in 2023 barely outpaced the rate of inflation. If you were one of the lucky employees who received a raise that was over 4.4%, you should feel confident that you’re doing better than a good portion of your peers.
5. Your kids go to private school
Private schools can cost $10,000 and up per year in tuition. That doesn’t account for any uniforms, fundraising, or other activity costs. While some students may receive scholarships or tuition reductions due to household income, it’s safe to say if your kids are attending private school, you are most likely doing better than the average middle-class American.
6. Your income is more than $97,650
You may have heard experts say things like, “The middle class is shrinking.” Unfortunately, statistics show this is true. In 1971, the middle class made up 61% of earners. In 2021, the middle class made up 50% of earners.
The median income for a family of four is $97,650. While this will vary widely due to factors like education, career, and location, if you’re earning six figures or above, you’re doing pretty well for yourself.
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In January 2024, the median weekly earnings were $1,145, according to the U.S. Bureau of Labor and Statistics. This number equates to just under $60,000 per year. This number doesn’t account for taxes, retirement contributions, or other household earners — it’s just based on the gross earnings for a full-time working individual.
8. You have more than $87,000 saved for retirement
Only about 30% of Americans feel like they’re on track for retirement savings. As of 2022, the median amount Americans have saved for retirement is $87,000. While that figure isn’t enough to retire on for most people, it’s a good place to start. Retirement savings build as you let it sit untouched and compound over decades.
9. You have less than $44,968 in student loan debt
Based on a 2023 study, the average middle-class American holds $44,968 in student loan debt. If you’re carrying balances below that amount or have zero student loan debt, you’re ahead of the game.
While high earners carry a large portion of student loan balances (think doctors, lawyers, etc), average middle-class Americans are still burdened by five figures of student loan debt.
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10. You can comfortably spend more than $1,600 per month on groceries
Food is the third-biggest expense for most households. For a family of four, the USDA recommends a grocery budget of $1,300 to $1,600. Food prices have been increasing over the last few years, with 2022 being one of the highest increases since the 1970s, at 9.9%. If you’re enjoying steak or other premium grocery items regularly, you’re doing better than most.
Pro tip: Explore ways to save money on groceries to help your grocery dollars stretch further.
Bottom line
Most of these statistics use the median rather than the true average. High-income earners tend to skew the statistics when you average out all the amounts. The median offers a more accurate look at where the middle of the road is when it comes to earnings, debt, and savings.
Remember, finances are deeply personal and depend on your lifestyle and needs — your situation and goals may look different than your neighbors. If you’re feeling a little behind, see if you can find ways to boost your bank account and save more money.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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