As a personal finance expert, I frequently encounter spending statistics that surprise me, sadden me, and sometimes worry me. The figures below summarize common money habits and may shock you—but my goal is to make you aware so you can aim to be better than “average.”
Some of these statistics might make you pause before a purchase or even prompt a significant change in how you manage your money. Even if you already outpace the average person, there’s always room to improve. “Average” is not a target if you want a secure financial future—many people struggle with stress and hardship because of poor money choices.
Here are several notable statistics about money habits that I find especially interesting and that I hope will motivate you to improve your financial health.
1. The average American household carries $132,529 in debt (without a mortgage).
The average American household without a mortgage carries $132,529 in debt. If you include households with mortgages, that average rises to $172,806. This total includes credit cards, mortgages, auto loans, student loans, medical debt, and other liabilities. The typical credit card balance alone is $16,061, and households with a car loan owe an average of $28,535.
At first glance, $132,529 might not seem alarming if you assume most of it is mortgage-related—but that figure applies to households without a mortgage, which makes it more concerning. Large car loans are especially problematic: many people finance a vehicle for an amount equal to half or even a whole year’s salary, which can be a major financial burden. Working a full year to pay for a car often leads to regret once you account for the long-term cost of monthly payments.
2. Average budget allocation by category.
Here’s how the average household distributes its budget across common categories:
- 32.9% on housing
- 17% on transportation
- 12.5% on food
- 11.3% on insurance
- 7.8% on healthcare
- 5.1% on entertainment
- 3.3% on clothing
- 3.2% on cash contributions
- 2.3% on education
Housing and transportation together make up half of most household spending. These categories deserve special attention when trying to reduce expenses or improve savings.
3. Only 30% of American households have a long-term financial plan.
It’s surprising—and worrying—that only three in ten households maintain a long-term plan. A clear plan is crucial for setting goals and staying focused, especially if you’re not yet retired or financially independent. Without goals, progress is harder to measure and maintain.
Setting specific, measurable objectives and a timeline helps turn vague intentions into real progress. If you don’t yet have a long-term plan, start by defining what financial success looks like for you and outline steps to get there.
4. In 2015, the average American donated $5,491.
That figure represents the overall average and can be skewed by large donations. Among taxpayers earning between $50,000 and $100,000, the average charitable deduction claimed was $3,244. Philanthropy varies widely across income levels and personal priorities.
5. People earning under $75,000 are less likely to keep a budget.
Strikingly, individuals earning less than $75,000 per year are less likely to use a budget, while those earning more than $75,000 are more likely to use coupons. Budgeting is a powerful tool at any income level: it helps prevent living paycheck to paycheck, increases savings, and reduces or eliminates credit card debt.
A well-structured budget makes you mindful of incoming and outgoing cash flows. It clarifies how much you can allocate to each category, highlights overspending, and creates room for intentional saving and investing.
6. 44 million Americans have student loans.
Student loan debt affects tens of millions of people. Repaying student loans offers several benefits: it reduces financial stress, frees up money for retirement savings or other priorities, and can enable life changes such as traveling or pursuing a better job. Paying off student debt can be transformative—many people find it one of the best financial decisions they make.
7. 10 million American households are unbanked.
Approximately ten million households do not have a bank account. Many of these households also likely lack access to investing. Investing helps your money grow over time—cash “under a mattress” loses purchasing power due to inflation.
Compound growth demonstrates the power of investing: for example, $1,000 invested at an 8% annual return could grow to around $21,724 in 40 years. Contributing $1,000 annually under the same return becomes about $301,505 over 40 years, and starting with $10,000 then adding $10,000 yearly could grow to roughly $3,015,055. Time and consistency matter.
8. There are 1.9 billion open credit cards in the U.S.
With about 199.8 million cardholders in the U.S., the market includes nearly ten cards per cardholder on average when combining corporate and personal cards. That volume of cards highlights both the convenience and the risk of overextending credit.
9. 20 million Americans own their homes outright.
Roughly 20 million Americans do not owe a mortgage on their homes. Owning a home outright is a significant financial milestone and can provide long-term stability and cost savings.
10. Two in five Americans have engaged in financial infidelity.
Among couples who combine finances, two out of every five admit to some form of financial infidelity—secret purchases, hidden debt, or undisclosed assets. This behavior has increased in recent years. Financial secrecy can cause debt to accumulate, increase stress and unhappiness, and damage trust in relationships. In severe cases, it can affect job performance or lead to divorce.
Reflect on these statistics and consider which surprised you most. How do your financial habits compare to the averages? Use this information to evaluate and improve your own financial plan.