Articles by Ana-Ioana Ciochia - FinMasters Master Your Finances and Reach Your Goals Tue, 06 Feb 2024 05:21:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 How to Become an Interior Designer: An Interview With Kelsey Omeis https://finmasters.com/how-to-become-an-interior-designer/ https://finmasters.com/how-to-become-an-interior-designer/#respond Sun, 30 Apr 2023 16:00:59 +0000 https://finmasters.com/?p=209045 Is interior design the right career for you? Check out these career insights from a working interior designer.

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If you are both creative and practical, and your creativity leans toward the visual side, the interior design might be the career you’re looking for. But what does it take to become an interior designer, and what does the job actually involve?

We spoke to interior designer Kelsey Omeis to get her insights on how to become an interior designer, what the job requires and the rewards it delivers.

Kelsey is an NCIDQ-certified and LEED-accredited interior designer based in Manhattan, NY. Before launching her own design studio, KLSY, she worked at large corporate design firms, small architectural firms, and on projects from corporate workplaces to residential and even some hospitality.

In her free time, Kelsey produces educational videos for interior designers on the KLSY YouTube channel, where she aims to educate young designers and debunk some of the stigmas surrounding commercial interior design.

Kelsey Omeis

What does an interior designer do? What inspired you to become an interior designer?

Kelsey Omeis

Interior design, in my opinion, is the perfect combination of art and architecture; creativity with technicality. I was always a creative child, always drawing or painting, or building something. Because art was my favorite class in school, and because I didn’t have even a mild interest in anything else, I decided to major in art in college.

Unfortunately for me, I soon realized after my second year that an art degree kind of means nothing in the real world, and I didn’t have any real tangible skills to transfer over to a stable career. I considered becoming an architect, but if I’m honest, I toured the architecture program at another school and was immediately intimidated by the amount of work, dedication, and grueling hours needed.

My mother suggested looking into interior design, which I didn’t even know was a real job, at the time. That mix of art and architecture was appealing to me, and I saw it as a way to combine two things I loved into one. And so, in my third year of college, I transferred to Drexel University and eventually graduated with Bachelors’s and Master’s degrees in Interior Architecture and Design.

Interior design sketch

Can you walk us through your experience in the interior design industry?

Kelsey Omeis

I feel incredibly lucky to be a part of the industry I’m in. Designers may have it hard with notoriously long hours and, at times, difficult clients, but there’s fun stuff, too. Going to showrooms and exploring furniture and fabrics. Working with architects, contractors, and engineers on active construction sites. And, in general, having something physically tangible to show for all of your hard work.

Kelsey Omeis on Design con

The interior design industry is overall a very fun one. We work hard, which means we play even harder. Product presentations usually include happy hours, and industry conventions end with after-parties and chic dinners. But with all the fun aside, the best part about being in this field is building friendships with the people you work alongside. Every industry is small, but this one feels especially so.

I’m always surprised to find out my former coworker is now a sales rep collaborating on a project with me or when I run into one of my mentors at an event. It’s those things that make the job more human.

What is a typical working day like for you?

Kelsey Omeis

My day-to-day activities depend on the phase of a project I’m working on, but most of my days include answering emails from clients, selecting furniture and finishes for projects, using computer programs like AutoCAD and Revit to create construction documents and 3D renderings, and presenting my designs to clients.

There aren’t many jobs where you can scroll Pinterest and play with colors all day long, which I will admit is pretty awesome. But because a lot of my day is spent at the computer, it’s easy for me to get stuck there. Something I’m trying to get better at is stepping away from it to either sketch out an idea by hand or head over to a showroom to gain some inspiration.

Interior Design idea

How do you become an interior designer? Is any course or certification needed to become one? Any advice for beginners in this field? What do you think are the essential skills for a successful interior designer?

Kelsey Omeis

There’s a big misconception that an interior designer is simply someone with great style and taste. And that can certainly be true for a “decorator”, or someone who only selects furniture and accessories. But professional interior designers, especially those working in the commercial sector, must have a degree in either interior design or a related field, like architecture, to work professionally at a design firm or gain access to many industry benefits.

This is because our job goes beyond what looks good. We’re trained on things like user experience, space planning, and how things are constructed. Even more important than that, designers are expected to be knowledgeable about codes, like fire, emergency exits, and ADA accessibility, in order to design spaces that are safe and inclusive.

Ground Floor Plan

Many designers opt to become NCIDQ (National Council for Interior Design Qualification) certified, which includes taking an extensive exam that tests all of these areas of knowledge. The NCIDQ exam isn’t required, but it gives a designer more credibility, and, in some states, the legal power to sign their own construction drawings.

How much do interior designers make?

Kelsey Omeis

Salaries will range depending on where you live, the size of the company you work for, and the industry sector you choose to pursue. In my opinion, designers can make a great, livable wage if they’re at a good design firm, but unless you start your own company or work your way up over a lifetime to a high position in a company, it’s not likely you’ll become suddenly wealthy.

Over the years, the value of architects and designers in our society has decreased, and many designers (including myself) feel we are underpaid as a whole. Due to this, it’s very common for designers to take on projects on the side to make extra money (if it doesn’t compete with their full-time job!). But with that said, if you’re smart, talented, and brave enough to take some risks, I believe anyone in this field can be successful.

💸 According to the Bureau of Labor Statistics, the median salary for an interior designer in the US is $60,340. 25% of interior designers earn over $77,700, and 10% earn over $99,000.

Can you walk us through your creative process when designing a new space? How do you balance your personal vision for a project with the desires and needs of your clients?

Kelsey Omeis

This is the ultimate question that designers contemplate constantly! We are obviously professionals and are hired for our expertise, but at the end of the day, the client is the one holding the purse.

It’s all about balance and picking your battles. Sometimes it’s worth stating your case for a point (like investing in the more expensive flooring that will last a long time), and other times I let the client win (like an ugly painting they insist on hanging front and center). I think it all starts with knowing if this client is a good fit to work with.

If you and the client have great energy and trust from the start, it’s likely they will rely on you to make the right design decisions. But if your chemistry is bad (or you notice any red flags), the project is likely to be a long and stressful one.

How do you balance aesthetics with functionality when designing a space?

Kelsey Omeis

To me, that is what separates a good designer from a great one: the ability to create a beautiful space that is functional and creates an overall positive user experience. Typically, the function is the priority. If something doesn’t work, it doesn’t matter how pretty it is! This is why we plan the space before selecting any finishes. We need to know how the users will interact with the space first, and what opportunities and challenges we may face. Then, we can figure out how to make it more visually appealing.

Dining room

What’s your favorite part of the job? What’s the hardest part of the job?

Kelsey Omeis

My favorite part of the job is seeing the final product. When you walk into a completed space for the first time, it makes all the hard work worth it. It’s really cool to have a job where you can do some sketches on a napkin or select a beautiful fabric and watch your entire vision become a reality right before your eyes. It’s tangible.

The most difficult part might be managing different personalities. As a designer, one of our main responsibilities is to act as our client’s liaison and coordinate third-party teammates (such as engineers or contractors) so that everyone works together to build the space to our design intent.

All of these people don’t always see eye-to-eye, including the client. This is where being an effective project manager and problem solver comes into play. Things go wrong. So we need to be able to figure out a solution that makes our client happy and keeps the entire team on the same page.

Are you inspired by others’ work? How do you stay up-to-date with the latest design trends and innovations?

Kelsey Omeis

I LOVE attending design conventions and other industry events. It’s probably the most fun part of being a designer. These events will not only expose you to what’s new in design, but they’re such great networking opportunities that I believe all designers should take part in.

Staying connected with our local manufacturers’ representatives (the people that sell the products we are specifying) is also a great way to stay in the know. My reps are always stopping by or inviting me to their showrooms to show off their latest products, and they have incredible insight into what’s going on around the industry.

Kelsey Omeis

If you liked this interview and got inspired by it, make sure to give Kelsey a follow:

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How to Become a Health Coach: An Interview with Aaron Darko https://finmasters.com/how-to-become-a-health-coach/ https://finmasters.com/how-to-become-a-health-coach/#respond Wed, 01 Mar 2023 17:00:56 +0000 https://finmasters.com/?p=180788 If you're interested in pursuing a career in health coaching or just curious about it, this interview is a must-read.

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This is the first article in a series we call FinMasters Careers 💼 where I will interview professionals from different industries, including entrepreneurs, executives, creatives, and freelancers. These individuals have achieved great success in their respective fields and have valuable insights and experiences to share.

Whether you’re a recent graduate, considering a career change, or simply interested in learning more about a particular profession, I hope that these interviews will provide you with a wealth of information and inspiration. You’ll learn about the daily responsibilities of the job, the skills and qualifications required, and the challenges and rewards of working in the industry.

I aim to give you a glimpse into the world of successful professionals and help you make informed decisions about your career path.

Hope you enjoy it ❣

Ana

If you’re interested in pursuing a career in health coaching, this interview is a must-read. Our guest will share his insights and advice on how to get started, build a successful business, and make a positive impact on people’s lives.

Aaron Darko is a 33 year old London native and a seasoned health coach with years of experience in the field. He has helped countless individuals achieve their health goals through personalized coaching and a holistic approach to wellness.

Aaron started traveling when he was 20 and has spent more than a decade in Asia. He currently lives in Bali (envy). He enjoys playing sports, working out with to his favorite music, eating dinner at steakhouses with his friends and traveling to new exciting places. He also likes geeking out on marketing and human psychology.

Aaron Darko

In this interview, we will learn about Aaron’s journey to becoming a health coach, the skills and qualifications required to succeed in the field, and the challenges and rewards of working as a health coach.

So, whether you’re a health enthusiast, a recent graduate, or simply curious about the world of health coaching, join us me as I explore the exciting and rewarding career of a health coach.


What does a health coach do? How would you explain what you do to a five-year-old?

Aaron

I help business men and women who are aged between 30-55 to get in the best mental and physical shape of their lives so they can enjoy life more.

I help them work out in the right ways. I help them eat healthy food consistently and educate them on what foods are healthy and why.

Then I also analyze their blood work results and tell them what their results mean and how to make their bloodwork great, so they can have confidence in their personal health, so they can be around longer to enjoy life and be with their loved ones.

What sparked your interest in this field and led you to become a health coach?

Aaron

I was always into health but wasn’t serious about it after I left university. I pursued my career, and that was more important to me than health at the time. It wasn’t until a friend came to hang out with me that I really changed my ways.

He was ripped with good muscle mass and an example of what I could have been had I been focused on being exceptional in my health. He was a great example of the man I wanted to be and, more importantly, deep down, knew I could be.

So I started working out with him, he taught me his ways, and I was also eating with him too. His approach to working out and nutrition was interesting and different. I started getting ripped.

I started sharing my pictures online, which led to my audience (primarily middle aged online marketers) ask me how I was doing it.

And that’s where my health business started as I came out with my first course teaching people the method I was using to get ripped fast… called Alpha Shredding.

Aaron Darko: before and after

What is a typical day like for you as a health coach?

Aaron

I am focused on the three things one of my business mentors told me:

  1. Sales 
  2. Marketing
  3. Service

Sales means taking calls from people who have expressed interest in my service after watching my webinar presentation.

Marketing means putting out content that targets my ideal client.

Service means fulfilling the clients I already have and making sure they are more than happy with their results they’re paying good money for.

What is your approach to helping clients achieve their health and fitness goals? Do you customize your coaching style to meet the needs of individual clients?

Aaron

Yes its very customized to each person. My approach is very different to most health and fitness coaches out there.

Because I go deep on the mindset side to get into the core of my clients problems.

A weight problem is just a symptom of a bigger problem. Usually it’s something that happened in childhood, and they made that mean something that is now how they live their life or cope with stress as an adult.

Overeating is a common problem I help with, and that often stems from the person attaching the emotion of love to food – so of course if that happens, one can never get enough of it.

But people are unaware of this stuff, so I help them become aware of the patterns that have been running their entire life in this area and make them realize they are not broken. They just need to know what they were unaware of before, so they can remove it and replace it with more empowering beliefs.

Then I go into habits and how to create healthy habits, how to upgrade their self image and then we go into nutrition, workouts with a focus on improving mobility and joint health for longevity, and then we go into self care, both physical and mental.

So its a holistic approach to their health. Its a one stop shop for their health issues.

Can you provide examples of specific strategies or techniques that you use to help clients make lasting behavior changes?

Aaron

Simple one is asking them questions about why they do that behavior and really making them think. A lot of what I do is smart questioning. I don’t really use any “technique” 

I just know the right questions to ask because I’m always looking for the core of why that person does what they do, and a lot of times, its a big aha to that person because they don’t know.

Once they know why they do it, I help them remove that story, and then its easier for them to take the desired action.

How do you assess your clients’ progress and determine whether their goals are being met?

Aaron

We track their progress in a spreadsheet and also in the workout app. We track many metrics like what food they’re eating daily, their stools, how much water they’ve drank, their mood, their sleep times and quality. Lots of things.

How do you handle challenges or setbacks that clients may experience along the way?

Aaron

Its normal for life to happen. Sometimes they don’t train for a few days or miss a workout. That’s exactly where I am valuable with coaching them through that to ensure they don’t fall off (like they usually did before hiring me) and still make progress.

I encourage my clients and show lots of empathy, compassion, and understanding toward them because I can relate to their struggles. 

They then feel this support and want to get back on the regime.

Aaron Darko hitting pads

How do you stay current on the latest research and trends in health and fitness?

Aaron

I follow a select few experts in health I respect. That’s it, really.

How does one become a health coach and get started in this field?

Aaron

You gotta first have results yourself. You can’t be an armchair coach who’s never done a single pushup! 

Then you need to learn sales and marketing. That is a lifelong pursuit, but you can learn enough to be good in a few weeks/months. 

Everyone thinks its about knowing how to train people. Well yeah, thats obvious – if youre in great shape, you clearly know how to train and eat, now you need to help others – usually that looks like helping them for free to build up your confidence and testimonials – but really its more for the belief in yourself and confidence because that is the ingredient you really need. 

If you believe you can get people results, thats whats important, and then you need to know how to market and position yourself so you can get clients.

Aaron Darko coaching

Do you have any advice for those just starting out in the health coaching profession?

Aaron

Adding to my advice above, I would say get a mentor. Someone who knows their stuff and makes you feel more confident in yourself and your abilities.

Are there any specific trainings or certifications required to be a health coach? If so, which ones would you recommend to someone interested in this field?

Aaron

The best results are the ones you get for yourself and clients. All people care about is results.

Also you can get a certificate for personal training in a weekend, so how the heck does that make you qualified to be a good trainer? It doesn’t! Thats the problem with the industry. Lots of armchair coaches with no experience. 

Experience and results are what people want, so get that under your belt, and you’ll be fine. 

How have you found your niche in the health coaching world, and what sets you apart from other coaches?

Aaron

I already mentioned some of it when we talked about how I help my clients achieve their goals. To add to it, its just been a lot of trial and error by doing. I first started serving guys who wanted to get ripped and found that it was a shallow result i was helping people with. So I started to change my marketing and messaging to align better with who I wanted to attract. So now, my niche is corporate people and entrepreneurs because I am an entrepreneur and busy person, so I can relate to my markets’ problems.

One thing I’ve learnt is clarity comes from action, not sitting there twiddling your thumbs. Make mistakes faster, and the niche will come to you. Things will get clearer. What you want becomes clearer.

As a health coach, how do you find clients and build your business?

Aaron

Posting content that helps people move them closer to their desired outcome, which for the most part is losing weight, building muscle, getting stronger so they can look and feel better.

Clients are all on social media – Facebook, Instagram, Youtube, Twitter, LinkedIn, TikTok (although I’ve never gotten clients from there yet) 

Focusing on whats in it for them vs. whats in it for me. Because i’m already in shape, its all about them!

Aaron recording a video

Can you tell me more about how you found your first job in health coaching?

Aaron

It was an inbound lead, which i love the most. That’s called attraction marketing – when you become the hunted instead of the hunter. 

I want people coming to me. I don’t want to be going to people; much better way to do business.

So because I had good positioning through my content, this guy messaged me for help, and I enrolled him over the phone (which is a whole skillset I had to learn!)

What is the salary range for a health coach, and would people who choose this career make a good living?

Aaron

Anywhere from 3k-20k a month to 100k+ a month which in yearly figures is 36k – 240k to 1.2m+ 

The reason for that gap is whether or not your mind is right (do you really want to do this, and are you ok with a lot of pressure and risk). There’s lots of factors that go into it, like skillset of sales and marketing.

Are there any common mistakes you see people make when starting out in the health coaching field?

Aaron

Yeah, not getting a mentor and not believing in themselves, not knowing what the heck they’re doing.

Being delusional about how good you are when that is only validated by your clients results.

Not learning and getting good at sales and marketing.

Are there other health coaches or mentors in the field that have inspired you or that you think others should know about?

Aaron

There’s too many to name. I think the most important ones are Paul Saladino and Hunter Fitness. Get your nutrition and mobility in check because that will serve you in the long term.

What is the most rewarding part of your job as a health coach?

Aaron

To see the clients make lasting change and become the healthy person they knew they could be. To see them continue on doing the things I taught them is incredibly rewarding, and seeing how much of an impact I’m able to create on this earth one person at a time is nice. Its part of my purpose to lead by example to inspire people to be great themselves by me conquering my fears, crushing my goals and inspiring through my actions.

What is the most challenging aspect of your job?

Aaron

The tech work is tedious, its not challenging and the emotional side of business, which I have been working on a lot.

Is there a particular moment or achievement in your career that you are especially proud of?

Aaron

Seeing one of my clients have his first boxing match as a result of the confidence he gained from working with me. That was amazing to see him go from strength to strength. Momentum is a powerful thing.

When he joined me, he was not making much money in his business, was not confident at all and was overweight. After we worked together, he went on to make multiple 6 figures in his business and put a down payment on his first property. 


If you liked this interview and got inspired by it, make sure to give Aaron a follow: Website | Instagram | YouTube | Facebook

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US Homeownership Rate by Age, Race, State and Year (2024) https://finmasters.com/home-ownership-statistics/ https://finmasters.com/home-ownership-statistics/#respond Mon, 28 Nov 2022 17:00:30 +0000 https://finmasters.com/?p=68694 These homeownership statistics give us a closer look at the demographic breakdown of home ownership in the US.

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Buying a house can be quite stressful, especially if you’ve never done it before. Knowledge helps relieve that stress, so we come up with a list of Home Ownership Statistics and Facts for 2024 to give you a better picture of what you’re getting into. Let’s dive in and look at what homeownership looks like today.

Key Findings:

  • The homeownership rate is 65.8% in 2022.
  • 79% of people aged 65 and over are homeowners.
  • More single women own houses than single men.
  • West Virginia has the highest percentage of homeowners, 79%.
  • 40,518,000 of the owner-occupied housing units have three bedrooms.
  • Hawaii is the state with the highest average price for a house ($910,349).
  • The average sale price of a house reached an all-time high in 2021, at $240,600.

The U.S. Homeownership Rate

The US homeownership rate reached 65.8% in 2022. The homeownership rate peaked in 2004, at 69.2%, but it dropped to the 63%-68% range during and after the 2008 recession. [1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership Rate by Country

Romania has the highest homeownership in the world, with 96% of the houses being occupied by the owner. The U.S. has a homeownership rate of 66%, similar to the rates found in France (65%), Australia (66%), and Canada (67%). Those rates might seem low compared to Romania or Slovakia (92%). Many ex-communist countries have high homeownership rates because, after the fall of the communist regime, people bought the homes they lived in from the government at low prices.[2]

Who Are American Homeowners?

The following section offers details regarding age, gender, race, family income, marital status, and education level, as well as insights on homeownership by house type, state, and country.

Homeownership Rate by Age

79% of people aged 65 and over are homeowners, compared to only 39% of those under 35 years old.

The low number of young homeowners makes sense, as younger Americans are still working towards a steady and higher income and building their creditworthiness. Another important factor to be taken into consideration is that the average price of a house has increased considerably over the years.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership by Marital Status

In 2021, there were 48,425,000 married homeowners, while just 19,456,000 were single. It’s possible that the modest number of single owners is due to the fact that most people buy homes after getting married and saving up money for the purchase. Single people often prefer to rent. [1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Single Homeowners by Gender

More single women in the US own houses than single men. Data shows there were 11,222,000 single female-owned homes in 2021, and only 8,235,000 single male-owned homes.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership Rate by Race

The White community has the greatest homeownership rate, with 75% of them being homeowners. The Asian, Native Hawaiian and Pacific Islander community has the second highest rate of homeownership (61%), followed by the Hispanic community (48%) and the Black community (45%). The low rate reported by the Hispanic and Black communities may be a result of the community’s experience with various inequities, such as income gaps, lower credit scores, higher interest rates, and mortgage denials.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership by Family Income

79% of the people with a family income greater than or equal to the median family income own a home, whereas only 53% of those with a family income less than the median family income are homeowners.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership by Education Level

High school graduates are the heads of 33,267,000 households. Owners of 20,670,000 households have a bachelor’s degree, while 13,697,000 have a graduate or professional degree. The lowest number of owners has been recorded among those who did not complete high school, with only 1,957,000 of them owning a home. In order to offer you a better overview, we also added the number of adult population for each education level.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership by House Size/Type

Most owner-occupied homes have three bedrooms (40,518,000), followed by homes with four or more bedrooms (27,097,000). Small owner-occupied homes are less common: two-bedroom homes (13,043,000) and one-bedroom homes (1,809,000).[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Homeownership Rate by State

Data from the U.S. Census Bureau shows that West Virginia has the highest percentage of homeowners, reaching 79%. New York comes last with the lowest homeownership rate at 53.6%.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.

Average Home Price in the U.S.

The next section provides information on the average home price by state and an overview of the historical U.S. home prices as well as a comparison of homes available for sale from 1986 to today.

Average Home Price by State

Who wouldn’t want to move to Hawaii and live the tropical lifestyle life? Well, you might want to think twice before doing that as Hawaii is the state with the highest average price for a house ($910,349). The main reason for the high price tag is the land use and zoning regulations of the state and counties. The state with the lowest price is West Virginia ($114,640), which also has the highest homeownership rate among all states. The reason behind this might be the low levels of median income and the high levels of poverty, mostly caused by the decline of the coal and mineral industry. This also contributed to population decline as well as a higher rate of unemployment.[3][4][6]

Historical U.S. Home Prices

Average home prices have increased significantly from 1988 ($53,000) to the present ($240,600). The prices fluctuated a bit over the years, growing rapidly between 2000 to 2007, then decreasing from 2007 to 2012 ($135,400). Ever since 2012, household prices have been growing steadily, reaching an all-time high in 2021. House prices keep rising faster than wages, a challenge for young buyers entering the market.[1] Trusted source
U.S. Census Bureau
The U.S. Census Bureau, a principal organization in the U.S. Federal Statistical System, is in charge of producing data on the country's population and economy.
[5] Trusted source
The Federal Reserve Bank of St. Louis
The St. Louis Fed works to support the U.S. Treasury's financial operations, nurture a healthy financial system, advance economic education, community development, and equitable access to credit. It also promotes stable pricing and economic progress.

How Many Homes Are Up for Sale in the U.S.?

The number of homes listed for sale has been continuously getting lower, from 1,236,254 active listings in 2016 to only 445,784 listings in 2021. However, the number of listings grew to 308,061 active listings in 2022. [7] Trusted source
The Federal Reserve Bank of St. Louis
The St. Louis Fed works to support the U.S. Treasury's financial operations, nurture a healthy financial system, advance economic education, community development, and equitable access to credit. It also promotes stable pricing and economic progress.

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How Much Do Americans Spend on Holidays? 2023 Holiday Spending Statistics https://finmasters.com/holiday-spending-statistics/ https://finmasters.com/holiday-spending-statistics/#respond Fri, 11 Nov 2022 17:00:24 +0000 https://finmasters.com/?p=62176 Let's take a look at American holiday spending: what we spend on, who spends the most, and where we spend it!

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We all enjoy the holiday season, and we try to make it as memorable and enchanted as possible each year. But all this enchantment comes with a cost. Holiday spending can turn the most wonderful time of the year into the most expensive.

Let’s take a look at just how much Americans spend on the holidays, what they spend on, and who spends the most.

Key Findings:

  • In 2022, Americans spent $929.5 billion on holiday-related purchases.
  • The average cost of Christmas shopping in the United States was $833 per person in 2022.
  • Gifts are the biggest expense for individuals, followed by seasonal items.
  • Men spend $94 more than women, on average, on holiday-related purchases.
  • More than half of consumers prefer buying presents online instead of going into a store.
  • 50% of people are likely to start holiday shopping before the end of October.

How Much do Americans Spend on Holidays?

Americans spent $929.5 billion on holiday-related purchases in 2022. For comparison, that amounts to over 3.3 times the national GDP of Finland, Santa Claus’ home country.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Holiday Spending By Category

Let’s break down the categories of goods that customers spent money on for Christmas, which amounted to a total of $833 per person in 2022.

Gifts

A breakdown of the cost indicates that $586 of the total amount was allocated for gifts. Out of the amount left, $247 was used on seasonal items such as decorations, cards, candy and food.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Seasonal items

Americans spent $247 on average on seasonal items such as decorations, cards, candy and food. That’s a $16 increase compared to 2021, when the average was $231.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Holiday Spending by Age & Gender

Next we’ll look at the amount spent on Christmas shopping by all age groups and genders in 2021.

Holiday Spending by Age

Among all age categories, those between the ages of 45 and 55 spent the most ($1,162) during the Christmas season. This income group typically has the largest and most stable incomes, the best access to credit, and the most family obligations, which explains their higher spending. [1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Holiday Spending by Gender

Statistics show that women spent less than men during the holiday season of 2021. To be more specific, women spent $952 on average for Christmas, while men spent $1046.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Where Do Americans Shop for the Holidays?

Data gathered by the National Retail Federation shows that in 2022, 57% of consumers preferred to buy gifts and items online instead of going to the store. This is a convenient and fast way of crossing things off the Christmas list while avoiding crowded stores.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

When Are Americans Most Likely to Start Their Holiday Shopping?

It goes without saying that the earlier you begin planning for the holidays, the less stress there will be throughout the Christmas season. That’s why 50% of people are likely to start shopping before October ends. Only 10% get started with holiday shopping during December. Some of them (1%) even said they’re most likely to start shopping in January![3]

Christmas vs. Other Holidays

Data from 2023 shows that Christmas has the greatest average spending of any holiday, at $875 per person, which may not come as a surprise. Inflation is likely to put a dent in that spending, but it will still exceed spending for Mother’s Day, the holiday with the second-highest average spending per person at $274.[1] Trusted source
National Retail Federation
The National Retail Federation is the biggest retail trade association in the world.

Christmas Spending in the U.S. vs. Other Countries

Data from WorldRemit shows that people in Canada spend the most on Christmas among all countries presented on the map, with $1,717 spent on average per household. Germany falls second with $1,653, followed by Australia with $1,188. What’s even more interesting is that households in Mexico ($1,055) and France ($1,142) spent almost as much on Christmas as American households ($1,205).[2] Trusted source
WorldRemit is an online money transfer service allowing customers to send money using a variety of payment methods to relatives and friends

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15+ Minimum Wage Statistics & Facts (2023) https://finmasters.com/minimum-wage-statistics/ https://finmasters.com/minimum-wage-statistics/#respond Sat, 22 Oct 2022 15:27:00 +0000 https://finmasters.com/?p=60713 We researched and collected the most interesting statistics and facts about minimum wage and minimum wage workers.

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The federal minimum wage has not increased in over ten years, despite continuous increases in the cost of living. How great is the impact of the stagnant minimum wage on American workers? We collected some interesting statistics and facts about minimum wage and minimum wage workers that could provide some answers.

Key Findings

  • The federal minimum wage has been $7.25 since 2009.
  • Adjusted for inflation, the minimum wage was highest in 1968.
  • The state of Washington has the highest minimum wage, at $16.28 per hour.
  • In 2022 141,000 Americans earned minimum wage, while 882,000 Americans earned below minimum wage.
  • 45% of minimum wage workers are below 25 years of age.
  • 75.4% of minimum wage workers are White.
  • Over a third of minimum wage workers (33.6%) are high school graduates with no college experience.
  • Louisiana is the state with the highest percentage of workers who are paid minimum wage (2.8%).
  • 66.5% of minimum-wage workers are single and have never been married.
  • The leisure and hospitality industry employs the highest number of minimum-wage workers.

What Is the Current Federal Minimum Wage?

The current Federal minimum has been $7.25 since 2009.[1] Trusted source
The U.S. Department of Labour
The United States Department of Labor is responsible for the administration of federal laws pertaining to wage and hour regulations, reemployment programs, unemployment compensation, occupational safety and health, and periodically economic data.

Minimum Wage Adjusted for Inflation

In 2024, the federal minimum wage is still $7.25, the same as in 2009. The value of the dollar is falling as prices for everything, from food to fuel, rise. That implies that workers are experiencing a decline in the purchasing power of their earnings.

Adjusted for 2024 dollars, the minimum wage was highest in 1968. Even though the minimum wage has increased steadily over the past century, the purchasing power of the minimum wage has been on the decline since the 60s.

Data show that the minimum wage should be increased to $10.01, to compensate for price increases and prevent the loss of purchasing power of low-income workers.[1] Trusted source
The U.S. Department of Labour
The United States Department of Labor is responsible for the administration of federal laws pertaining to wage and hour regulations, reemployment programs, unemployment compensation, occupational safety and health, and periodically economic data.
[2]

Minimum Wage by State

Some states impose minimum wages above those mandated by the federal government.

At $17.00, the District of Columbia has the highest minimum wage. Washington, with a $16.28 /hour minimum wage, is the second-highest paying state overall.

Although the minimum wages in the District of Columbia and Washington appear to be high, both states have higher than average cost of living indices. In 2022, the District of Columbia has an index of 145.3 and Washington has an index of 115.7. The average cost of living in the US represents a 100 value on the cost of living index.

30 states have a minimum wage above the federal level, 2 states have a minimum wage below the federal level (but the federal one still applies) and 5 states have no minimum wage.[1] Trusted source
The U.S. Department of Labour
The United States Department of Labor is responsible for the administration of federal laws pertaining to wage and hour regulations, reemployment programs, unemployment compensation, occupational safety and health, and periodically economic data.

StateCost of living indexMinimum Wage
West Virginia 85.2$8.75
Mississippi86.7$7.25
Oklahoma86.8$7.25
Kansas87.4$7.25
Alabama88.2$7.25
Missouri88.3$12.30
Arkansas88.5$11.00
Iowa89.9$7.25
Tennessee90.4$7.25
Louisiana90.7$7.25
Georgia90.9$5.15*
Nebraska91.0$12.00
Michigan91.0$10.33
Indiana91.1$7.25
Illinois91.8$14.00
South Dakota91.8$11.20
Ohio 92.2$10.45
Texas93.0$7.25
Wyoming93.2$5.15*
Kentucky93.2$7.25
New Mexico 93.9$12.00
South Carolina94.3$7.25
North Dakota94.3$7.25
Minnesota94.4$10.85
Pennsylvania 94.8$7.25
Wisconsin95.4$7.25
North Carolina 96.2$7.25
Idaho99.0$7.25
Delaware100.8$13.25
Florida101.0$12.00
Nevada101.1$11.25
Virginia 101.4$12.00
Montana103.1$10.30
Utah104.5$7.25
Colorado 106.9$14.42
Arizona 110.0$1.35
New Jersey110.3$15.13
Maine110.7$14.15
Rhode Island 112.0$14.00
Connecticut113.9$15.69
Oregon114.7$14.20
Maryland114.8$15.00
Vermont114.9$13.67
New Hampshire115.6$7.25
Washington115.7$16.28
Alaska126.4$11.73
New York126.5$15.00
California136.4$16.00
District of Columbia 145.3$17.00
Massachussets148.0$14.25
Hawaii170.2$14.00
*Employers subject to the Fair Labor Standards Act must pay the Federal minimum wage of $7.25 per hour.

How Many People Make Minimum Wage or Less?

882,000 Americans earned below minimum wage in 2022, while 141,000 earned minimum wage. That’s an improvement compared to ten years ago. In 2011 2,152,000 were paid below minimum wage, and 1,677,000 were receiving minimum wage.[3] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Who Makes Minimum Wage?

Minimum Wage Workers by Age

20-24-year-olds represent 26.9% of all minimum wage workers, according to the Bureau of Labor Statistics. Many people in this age group are still in school or just starting their working lives.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by Gender

70.6% of minimum wage workers are women, while only 29.4% of minimum wage workers are men. The number of female minimum wage workers is almost double the number of men who earn minimum wage. Service jobs are most likely to pay minimum wages, and these jobs are often held by women.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by Race

67.7% of minimum wage workers are White. 17% are Black, 23% Hispanic, and 5% are Asian.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.
[8]

Minimum Wage Workers by Education

According to the Bureau of Labour Statistics, 33.6% of minimum wage workers are high school graduates, while only 0.4% of minimum wage workers hold a professional degree. Workers who went to college but have no degree make up 24.7% of minimum-wage workers.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by Marital Status

76.5% of the minimum wage workers have never been married, while 12.7% are married and 10.8% are widowed, divorced, or separated. The younger workers who make up the largest share of the minimum wage workforce are less likely to be married or divorced.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by State

Louisiana is the state with the highest percentage of workers who are paid minimum wage (3.2%). Oregon is the state with the lowest percentage of minimum wage workers, with 0.3%.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

What Jobs Pay Minimum Wage?

The following section offers an overview of the sectors and industries with the highest number of minimum wage workers as well as other common characteristics of minimum wage earners.

Public vs. Private Sector

95.1% of minimum wage earners work in the private sector, whereas only 4.9% of minimum wage earners have a job in the public sector.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by Industry

In 2021, the leisure and hospitality industry had the most significant proportion of employees whose hourly salaries were at or below the federal minimum wage (6.7%). This industry employed over two-thirds of all workers earning at or below the federal minimum wage, primarily in bars, restaurants, and other food services. Many of these workers may get tips in addition to their hourly pay.[4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Minimum Wage Workers by Full and Part-Time Status

46.8% of minimum wage earners work part-time instead of full-time jobs. Again, this can be influenced by the young age of those working in part-time jobs while they go to school. [4] Trusted source
Bureau of Labor Statistics
The Bureau of Labor Statistics is the primary fact-finding body for the U.S. Federal Statistical System and the U.S. government in terms of labor economics and statistics.

Which Retail Companies Employ The Highest Number of Low-Wage Workers?

Based on a survey of 66 major food service and retail firms by the Economic Policy Institute, 25% of Pizza Hut’s employees earn $10/hour or below. McDonald’s and Subway fall second with 23%. GAP, SpeedWay, and Starbucks have the lowest number of employees paid $10/hour or below, with percentages falling in the 1% to 4% range.[5]

Minimum Wages by Country

Among the countries listed on the map, Luxemburg has the highest hourly rate at $13.4, followed by Australia, France, and Germany, which fall in the $12.8-$12.2 range. The country with the lowest hourly rate is India at $0.35. The hourly rate paid in the U.S. ($7.3) is generally below those paid in other highly developed countries.[6]

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How Much Does the US Spend on Healthcare? https://finmasters.com/healthcare-spending-statistics/ https://finmasters.com/healthcare-spending-statistics/#respond Sat, 01 Oct 2022 16:00:47 +0000 https://finmasters.com/?p=56595 Healthcare spending accounts for almost 20% of the GDP of the US, the highest in the world by far. Let's break it down.

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Healthcare spending is a major challenge for the US economy. The U.S. health system is the world’s most expensive and faces challenges in providing affordable care, leading to financial stress and debt for many Americans.

These U.S. healthcare spending statistics help us understand the dimensions of this problem.

Key Takeaways

  • The United States spent $4.1 trillion on healthcare in total in 2020, an increase of $500 million over the previous year.
  • The US spends around $12,530 a year per person on healthcare.
  • Canada spends $6,413 less per person each year than the US.
  • People 55 and older account for 30% of the population but 56% of healthcare spending.
  • Women spend $1770 more on healthcare per year than men do on average.
  • On average, Americans spend $1,059 a year on prescription drugs alone.
  • Insured individuals paid $7,739 on average for a single policy in 2021.
  • The amount of medical debt in the US is estimated to be anywhere from $88 billion to $195 billion.
  • 63% of people said they had to cut back on food and basic necessities to stay on top of their medical bills.

How Much Does the US Spend on Healthcare?

In 2020 the U.S spent a total of $4.1 trillion on health care, a $305 billion increase over 2019. The increase was largely driven by the COVID-19 Pandemic.[1]

For perspective, that’s about 19% of the US Gross Domestic Product (GDP) and more than 5 times the annual defense budget.

Average Cost of Healthcare per Person

The US spends around $12,530 a year per person on healthcare, the highest average cost of healthcare in the world. That figure is up from $10,242 in 2016.

To put the numbers in perspective, Canada spends $6,413 less per person than the US.[1]

How Much Does the US Spend on Healthcare Compared to Other Countries

The U.S.spends an average of $12,318 per person on healthcare every year. Germany falls a distant second with an average of $7,383 per person per year.[2]

Healthcare Spending by State, Age, and Gender

Per Capita Healthcare Spending by State

We were unable to determine the exact per capita healthcare expenditures per state. This is why we calculated the average healthcare spending per capita by state using the data on total personal healthcare spending. *Rolling drums* New York has the highest per-capita healthcare expenditure, with $14,007.[3]

Healthcare Spending by Age

The chart below shows the most recent data (2014) broken down by type sources of funding (private health insurance, Medicare, Medicaid, out-of-pocket, and all other payers and programs).

Statistics show that the 5-17 age group spends the least on healthcare, with an average of only $1,921 a year. The highest healthcare spending ($11,316) has been recorded for the age group 65+, which is expected: as we grow older, we require more care.[4]

Healthcare Spending by Gender

Data from 2014

Women spend on average $1770 more on healthcare than men, which could be due to the fact that women tend to go for regular checkups a lot more often than men. Women also have unique medical expenses, from giving birth to birth control and preventive care services.[4]

Where Does the Money Come From? Where Does It Go?

How Is Healthcare Financed

Most healthcare in the US is financed by private insurance companies, government programs like Medicare and Medicaid, and out-or-pocket expenses carried directly by the patient. Here’s how the balance gaming those payers has evolved. [5]

Who Pays For Healthcare?

A study by AMA shows that 27.9% of costs related to health care in 2020 were covered by private health insurance and 20.1% by Medicare.[6] Trusted source
AMA
The American Medical Association brings together more than 190 state and specialty medical societies as well as other important stakeholders.

Healthcare Spending By Type of Expenditure

Data show that people spend the most on physicians and clinical services, with $2,459 per person in 2020. This means an increase of $801 over the last ten years. Prescription drugs come second as the most expensive with $1,059 spent per capita in 2020.[1]

Cost Of Health Insurance

The net cost of health insurance has increased from $64 billion in 2000 to $259 billion in 2018. That’s a $194 billion increase over those 18 years. To put those numbers in perspective, Chile’s GDP is $252 billion.[7]

The average cost of insurance for single coverage grew from $6,435 in 2016 to $7,739 in 2021, with the cost of family coverage growing from $18,142 to $22,221.[7]

Who Pays for Employer-Provided Private Health Insurance?

The cost of employer-provided private health insurance is typically shared between the employer and the employee. The employer pays a portion of the cost as part of the employee’s compensation package. Here’s how the balance between employer and employee contributions breaks down.

Medical Debt Statistics

How Much Medical Debt Is There in the US?

The total amount of medical debt in the United States falls into the $88 billion (according to CFPB) to $195 billion range. Although this is a rather “generous” range, it is challenging to get an accurate figure, as many people use credit cards, loans, or other forms of financing to cover their medical costs.[8] Trusted source
CFPB
The Consumer Financial Protection Bureau is a United States federal organization in charge of financial consumer protection.

How Much Medical Debt Does the Average American Have?

Healthcare debt is a problem many Americans deal with, some of them finding themselves under challenging circumstances because of it, while others manage to stay on top of their bills. Wyoming has the highest average health care debt of all states, with $1,611, while Alaska comes second with $1,363. You might be wondering, why is health care debt so high in Alaska? Well, that’s because medical services cost a lot more than they cost in other states, considering accessibility to all medical services and procedures, costs of transportation for all medical supplies, and other factors.[9]

How Do People Tackle Medical Debt?

Health care services are quite costly in the U.S., and not all of the cost is covered by insurance. Many Americans, even those with insurance, fall into debt because of their high hospital bills.

A survey designed to reveal how Americans manage medical debt found that 63% of the people surveyed said they had to cut back on food and basic necessities to stay on top of their bills, while 48% used up all of their savings to pay off the debt. Unfortunately, some have been put in situations where they filed for bankruptcy, asked for charity aid, or lost their home.[9]

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How Many Millionaires Are in the US? 2024 Millionaire Statistics https://finmasters.com/millionaire-statistics/ https://finmasters.com/millionaire-statistics/#respond Wed, 14 Sep 2022 16:00:34 +0000 https://finmasters.com/?p=56223 Americans are fascinated by wealth, but how much do we know about it? These millionaire statistics tell us more.

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What would you do if you had $1 million? The possibilities are endless, but how do actual millionaires spend their money, and how do they get it? These millionaire statistics offer answers.

Key Findings:

  • 22,710,000 people in the U.S. have a net worth of $1 million or more. 
  • Among all states, New Jersey has the most millionaire households.
  • Only 3% of American millionaires received an inheritance of $1 million or above.
  • China, Japan, Germany, the U.K., and France, added together, have fewer millionaires than the U.S.
  • The typical American millionaire owns just one property (43%).

How Many Millionaires Are There in the US?

Data from the Credit Suisse Global Wealth Report shows that in 2023 there were just under 30 million millionaires in the US.

The number of millionaires decreased by 1.8 million just from 2021 to 2022.[1] Trusted source
Credit Suisse Research Institute
Credit Suisse Research Institute studies long-term economic trends with a global impact.

Is a Millionaire in the Top 1% of Americans by net worth?

Having a net worth of $1 million will not put you in the top 1%. You’ll need a minimum net worth of around $11.0 million to get into the 1% of Americans by wealth.[2]

Which State Has the Most Millionaires?

New Jersey has the highest rate of millionaires, with 9.76% of households showing a net worth of $1 million or above. That means that 246,058 New Jersey households are millionaires.[4]

How Millionaires Make, Grow, and Spend Their Money

Let’s take a look at how people got to become millionaires and how they choose to invest and spend their money.

How Many Millionaires Inherited Their Wealth?

21% of millionaires received some inheritance, but only 3% received an inheritance of $1 million or above. 79% of millionaires did not receive any inheritance from their family or relatives. 8 out of 10 millionaires come from low-income families.[3]

Percent of millionaires that inherited their wealth

Did Millionaires Get Rich Thanks to Their Income?

The majority of millionaires didn’t become wealthy because of their six-figure wages. In fact, 93% of millionaires polled by Ramsey Solutions claimed they did not become rich due to their salary but rather by working hard and avoiding debt. Only 31% of respondents surveyed had a $100,000 annual income at some time in their careers. One-third never made $100,000 a year at any point in their career.[3] Trusted source
Ramsey Solutions
Ramsey Solutions, founded by personal finance personality and radio show host Dave Ramsey, is a media company offering financial education and guidance.

Percent of millionaires with six-figure income at some time in their careers

How Do the Very Rich Invest Their Money?

Stepping above mere millionaires, here’s how Americans with a net worth of $30 million or above allocate their wealth. The data come from a survey of more than 500 private bankers, family offices, and wealth managers who handle investments for high-net-worth individuals.

Asset TypeAverage Percentage of Total Wealth
Primary and Secondary Residences32%
Equities18%
Commercial Property14%
Bonds12%
Private Equity/Venture Capital6%
Commercial Property Funds5%
Commercial Property REITs3%
Investments of Passion (Art, Wine, Collectibles, etc)3%
Gold2%
Cryptocurrencies1%
Other5%
Source: Visual Capitalist

How Many Properties Does the Average American Millionaire Own?

Although many people imagine millionaires owning various properties, the average American millionaire prefers to own only one property (43%), with only 8.5% of the millionaires in the U.S. owning four properties or more.[7]

Which Country Has the Most Millionaires?

Research done by the Credit Suisse Research Institute states that the country with the highest number of millionaires is the U.S., with nearly 30 million millionaires and 17 million people with wealth up to $5 million! To put numbers in perspective, China, Japan, Germany, the U.K., and France, added together, have a total of 17 million millionaires![1] Trusted source
Credit Suisse Research Institute
Credit Suisse Research Institute studies long-term economic trends with a global impact.

Is a Millionaire Rich?

For most of us – especially those of us who aren’t millionaires – the word “millionaire” conjures up images of spectacular wealth. But is a millionaire really rich?

Most Americans don’t think so. The 2023 Charles Schwab Modern Wealth Survey found that Americans see a net worth of $2.2 million as the minimum to be considered “wealthy”, and that a net worth of $560,000 is needed to be “financially comfortable”.

Those figures get even higher in major urban areas.

Being a millionaire doesn’t necessarily mean you have a great deal of disposable wealth, especially if you live in a high-cost environment. If your net worth is primarily in your primary residence you could even be financially stressed despite being a millionaire, especially if your property taxes are high and your income is limited!

“Millionaire” is a convenient term to describe wealthy people, but wealth isn’t just about net worth, especially when inflation is high. Income, debt, and cost of living all make a difference in defining whether a person can be considered “rich”.

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What Is the Average Student Loan Debt? 2024 Student Loan Debt Statistics https://finmasters.com/student-loan-debt-statistics/ https://finmasters.com/student-loan-debt-statistics/#respond Wed, 31 Aug 2022 10:00:12 +0000 https://finmasters.com/?p=54571 How bad is the student loan debt crisis? These student loan debt statistics shed some light on the problem and put it in perspective.

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Student loans can be a way to get the education you need to pursue your dream career, but paying them off can take a long time. Most borrowers will be paying them off for over ten years and they can be extremely stressful for fresh graduates looking for their first jobs.

How bad is the student loan debt crisis? These student loan debt statistics shed some light on the problem and put it in perspective. We data that will show how much borrowers owe, the types of loans and schools that run up the highest debt balances.

Key Findings

  • Approximately 1 in 8 Americans (12.8%) has student loans.
  • The average federal student loan debt per borrower in 2023 is $37,718.
  • The highest number of borrowers are aged 25-34.
  • 1.7 million Americans in their 60s and older are still paying off student loans.
  • The District of Columbia has the highest average student loan debt at $54,668.
  • 7.8% of all student loan debt is in default, and one in ten Americans have defaulted on a student loan.
  • Most borrowers need up to 20 years to pay off their student loans.
  • Less than 30% of applications for student loan forgivenss get approved.
  • Northwestern University has the most student debt.

How Much Student Loan Debt Is There?

The total student loan debt in the United States in 2023 is $1.76 trillion dollars. That’s higher than the total GDP of Australia ($1.67 trillion), South Korea ($1.66 trillion), or Spain ($1.39 trillion).

Total student loan debt has been on a fast rise ever since 2006 when The Fed started tracking the data, rising on average by 1.17% per year. The good news is that the growth has been slowing down in the past couple of years, with an overage year-over-year increase in the last five years being 0.66%.[1] Trusted source
The Fed
The United States of America's central banking system is called the Federal Reserve System. The Federal Reserve Act specifies three primary goals for monetary policy for the central banking system: increasing employment, preserving price stability, and lowering long-term interest rates.

How Many Americans Have Student Loan Debt?

Approximately 1 in 8 Americans (12.8%) have student loan debt.
43.6 million borrowers have federal student loan debt.

How Much Federal Student Loan Debt Is There?

Federal student loans account for $1.64 trillion dollars of the total student loan debt[1]. This includes both outstanding principal and interest balances. These loans are held by 43.6 million borrowers.

How Much Private Student Loan Debt Is There?

The remaining 121 billion dollars are held by private lenders. This means that only 6.9% of the total student loan debt is held by private lenders.[1]

Student Loan Debt by Type of Loan

The Stafford Unsubsidized Loans have the highest balance of debt among all federal loans, $585 billion. The second highest balance, $536 billion, is held in consolidation loans, followed by $295 billion in Stafford Subsidized loans.[2]

Total Student Loan Debt By Type Of School

Public schools account for the largest share of student loan debt, with a total of $652.1 billion owed. Foreign schools registered the lowest amount of student loan debt with $19.6 billion.[2]

What Is the Average Student Loan Debt?

The average federal student loan debt per borrower in 2023 is $37,718.[1]

Most student debt is held in large loans, but most borrowers have small loans. The chart illustrates that discrepancy by showing the percentage of the total student loan debt by loan amount and the percentage of borrowers by loan amount. This indicates that a relatively small number of borrowers accounts for a large percentage of the total student debt.

Average Student Loan Debt by Type of Loan

Average Debt By Type Of School

While the average student debt for a person attending a public school is $27,884, the loan amount that a person attending a foreign school has to pay off totals an astonishing $106,000. Even if you decide to pay it off over the next 20 years, your payments would be around $440/month. The amounts may be so high because people that leave to study in another country usually do that for their Master’s Degree or PhD.[2]

Who Has the Most Student Loan Debt?

Approximately 1 in 8 Americans (12.8%) have student loan debt. Next, we look at who owes all that student loan debt.

Average Student Loan Debt By State

The District of Columbia has the highest average student loan debt at $54,668. Data shows that 17.2% of the DC residents have student loan debt, some of them owing more than $200,000.[1]

Average Student Loan Debt By Age

Data shows that the 25-34 age group has the highest number of borrowers (14.8 million) among all five categories, closely followed by people in the 35-49 age group (12.2 million).

There are over 1.7 million Americans in their 60s, or even older, that are still paying off student loans.[2] In some cases, these may be students who went back to school later in life.

Average Student Loan Debt By Gender

Statistics show that women owe on average $1654 more than men for their student loans.

If that doesn’t seem like a big difference, keep in mind that women graduating with a bachelor’s degree expect to earn an average of $35,338 as a starting wage. That’s 19% less than what men anticipate earning.[3]

Average Student Loan Debt By Race

With an average student loan debt of $36,612, statistics show that members of the black community have the highest levels of debt. Asians appear to have the lowest amount of student debt, with an average loan balance of $25,380.[3]

Student Loan Debt By Income

Studies show that people with an annual income above $173,001 have the highest loan balances with an average of $60,519.

Those with an annual income of $27,001 – $52,000 and $52,001 – $97,000 have similar loan balances, the $27,001 – $52,001 income bracket being only $648 away from the latter.[1]

How Many People Default On Their Student Loans?

7.3% of student loan holders were in default in 2022. Student loan defaults were frozen as part of the COVID-19 student debt relief package, which has been extended multiple times.[1]

How Long Does It Take to Pay Off Student Loans?

Although the ideal timeline for a borrower to pay off the loan debt would be 10 years, most borrowers need up to 20 years to pay it off, while some take over 45 years to repay student loans. There are people that are 65+ still paying off student loans, though some went back to school later in life.[1]

How Many People Get Student Loan Debt Forgiveness?

Out of a total of 779,785 received applications for forgiveness, 190,869 have been approved while 464,724 of them are still pending. A total of 109,373 applications have been denied, and 14,819 have been closed.[2]

Which University Has the Most Student Debt?

Northwestern University has the most student debt among the top 20 universities in the U.S. with an average of $35,129 per student.[4]

An Intractable Crisis

The student debt crisis has been growing for decades. It’s rooted in a simple historical fact: the cost of education has increased much faster than average earnings, especially for young people. While the workforce increasingly demands higher levels of education, the rewards tend to be delayed.

The soaring cost of education makes it essentially impossible for most American high school students to attend college without debt.

Georgetown University’s Center on Education and the Workforce notes in a recent report that “It takes longer today than in the past for young people to latch on to good jobs. That’s because young people need more education and training than they once did to get a job that pays middle-class wages.”

Despite this reality, federal student loans begin accruing interest immediately upon graduation. That means that by the time many young graduates achieve their earning potential, their loans have mushroomed to unmanageable proportions.

This situation is clearly unsustainable. With the workforce demanding ever-higher levels of training, pricing young people out of higher education is a one-way road to economic disaster.

Policy solutions are needed. The current proposals for debt relief are a start but do not address the fundamental imbalance between education costs and earnings in the first decade of work.

For individual students or recent graduates, of course, policy solutions are not likely to come in time. All we can do is arrange our affairs as well as we can and make the most of a bad situation. If you are starting college or have a child who is starting college, start with this guide to college without debt. If you’re struggling to pay student debt, try these 13 Tips for How to Pay Off Your Student Loan Debt.

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How Much Do Americans Spend On Pets? Pet Spending in 2024 https://finmasters.com/pet-spending-statistics/ https://finmasters.com/pet-spending-statistics/#respond Fri, 17 Jun 2022 10:00:45 +0000 https://finmasters.com/?p=47419 We take a look into pet spending statistics to see just how much money Americans spend on their pets each year.

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How much money do Americans spend on their furry friends each year? We crunched the numbers, and here’s what we found.

The American love of pets is legendary, so it won’t come as a surprise to anybody that Americans spend more on their pets than the citizens of any other country in the world. The numbers also suggest a warning: pet ownership comes with great responsibility and can involve a considerable financial cost.

Key Findings

  • 1 out of 2 U.S. households own a pet.
  • $136.8 billion was spent on our furry friends in the U.S. – the equivalent of 171,214 houses in New York City.
  • An average U.S. pet owner will spend $912 a year on their dog and $653 on their cat.
  • Both cat and dog owners spend most on vet visits, food and OTC medicine.
  • Highly educated people aged 55-64 with an income of $200,000 or more spend most on their four-legged friends.
  • More and more people insure their pets. The number of insured pets in 2022 was 21.7% higher than in 2021.

How Many Pets Are There in the U.S.?

Studies show that 1 out of 2 U.S. households own a pet, which equates to 86.9 million homes.[1]

It’s not surprising that dogs outnumber all other species by far. Also not surprising is that the second most kept pet is a cat. It might come as a surprise that 6.0 million U.S. households own a reptile. In fact, there’s one reptile for every 11 dogs. [1]

How Much Do Americans Spend On Their Pets?

In total, Americans spent $136.8 billion on pet products and services in 2022. This is equal to buying 2,824,247 new cars. The average dog owner spent $912 and the average cat owner spent $653.[1]

Total Pet Spending

As mentioned above, Americans spent 136.8 billion in total on pets in 2022.

This represents a 10% increase in spending on pets compared to 2021 and a whopping 50% increase compared to 2018.[1]

Pet Spending by Products & Services

Data from AVMA shows that, unsurprisingly, the costliest items of owning both a cat and a dog are vet visits and pet food. The third most expensive item is grooming for dogs and toys for cats, as cats require much less grooming than dogs. A dog owner spends, on average, $99 a year on grooming, while cat owners only spend $18.[4]

Cost Of Owning A Dog Vs Cat

U.S. pet owners reportedly spend on average $912 every single year on their dogs and $653 a year on their cats.[4] On average, this comes out at around $76/month per dog and $54/month per cat.

Annual cost of owning a dog vs. a cat

The total amount includes items and services ranging from food and treats to vet visits and grooming.

Money Spent On Gifts For Pets

When it comes to toys and treats, dog owners spend $79 a year on gifts for their four-legged friends, while cat owners spend $50 a year on their cat companions.[4]

Gifts for pets image

Who Spends Most on Their Pets?

Next, let’s take a look at pet spending by demographics. We’ll look at differences in pet spending by income, age and education level.

Pet Spending by Income

Pet spending statistics show that pet owners of almost all income levels spend roughly 1% of their annual earnings on their pets.

The 2022 Consumer Expenditure Survey data shows that pet owners in the $200,000 or more income bracket spend the most on their pets – $1,455 annually.

People earning less than $15,000/year still spend $365 a year on their pets.[2]

Pet Spending by Age

Pet spending statistics show that people aged 55-64 spend the most money on their pets: $900/year.[2]

Pet owners aged 75+ spend the least of all age groups: $351/year.

Low pet spending in the <25 and 74+ age groups correlates to fewer people either owning pets at that age or being financially responsible for them.

Pet Spending By Educational Level

Pet spending statistics show (with one exception) that the more educated pet owners spend more money on products & services for their pets. This correlates to the spending by income level we’ve seen above since people with higher education are more likely to earn more.

The one exception seems to be pet owners who did not graduate high school. They spend on average $564/year on their pets.[2]

How Many Pets Are Insured?

Over the course of 2022, the number of insured pets in the United States increased by 22.1%.

Dogs represent 80.1% of the insured pets, while cats account for only 19.9%.

The reason behind the small number of insured cats could be due to the fact that cats mostly stay indoors and they rarely travel with their owners.[3]

Pet Spending FAQs

How much do Americans spend on pets?

Studies show that Americans spend a total of $136.8 billion on pet products and services. This is the equivalent of buying 2,824,247 new cars.

How much do pets cost per month?

Average dog owners spend $76 a month on their dogs and average cat owners spend $54 a month on their cats.

How much does pet insurance cost?

The average price that a pet owner has to pay for pet insurance (accident & illness) amounts to $640 a year for dogs and $387/year for cats.

How much does pet microchipping cost?

The average price of microchipping a pet ranges between $50 and $70 for both cats and dogs.

How much does pet vaccination cost?

The average cost for vaccinating a dog is between $75 and $100, while for cats the cost is around $65 and $110.

How much does pet boarding cost?

Pet boarding costs amount to $228 a year for dogs and $78 a year for cats.

How much does pet teeth cleaning cost?

The average cost of cleaning your dogs’ teeth is between $300 and $700 for a basic cleaning routine.You’ll spend around $50 to $300 for your cat.

How much does pet spaying cost?

Costs of spaying a dog usually run between $100 and $600 depending on various factors, while costs for spaying a cat typically run from $50 to $500.

What are the one-time costs of owning a pet?

One-time costs of owning a pet usually include a crate, carrier bag, spay, leash, pads, litter box (for cats), training classes (for dogs), and toys. The first year of owning a pet is usually the most expensive one.

How much does pet grooming cost?

Pet grooming can cost between $30 and $99 for dogs and around $18 to $70 for cats. Keep in mind that the price can vary widely based on what the grooming session includes.

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How Common Is Identity Theft? Types, Victims & Impact (2023) https://finmasters.com/identity-theft-statistics/ https://finmasters.com/identity-theft-statistics/#respond Mon, 23 May 2022 10:00:40 +0000 https://finmasters.com/?p=45007 Millions of Americans fall victim to ID theft each year. The most recent identity theft statistics reveal just how big of a problem it is.

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Identity theft is a huge problem in the US. These identity theft statistics reveal just how big of a problem it is, and who is most affected.

Most people may think that identity theft is rare. Unfortunately, the data shows the contrary. Identity theft happens both more often and in more ways than most people presume.

The data here should help you understand how prevalent identity theft is, who are the most likely targets, and how you can protect yourself.

Key Findings

  • In 2022 alone, 1,107,209 Americans reported identity theft.
  • Identity fraud damages suffered by U.S consumers reached $43 billion (USD).
  • 27% of all ID theft cases during the COVID pandemic involved Government Documents or Benefits Fraud.
  • Georgia leads the way as the state with most cases of identity theft.
  • People ages 30 to 39 are most likely to get their identities stolen.
  • 51% of victims of identity theft had an annual income of $75,000 or more.
  • Caucasians made up 71% of all identity theft victims.
  • 14% of the victims report they have lost more than $10,000 due to identity theft.

How Common is Identity Theft?

In 2022 there were 1,107,209 instances of identity theft reported by the Consumer Sentinel Network.[1] Trusted source
Consumer Sentinel Network
Consumer Sentinel Network is a complaint database that stores information about  fraud, identity theft, telemarketing, and other consumer-related complaints.

To get a sense of scale, that would mean that 1 in 200 Americans has filed an identity theft report.

Types of Identity Theft

The data from 2022 show that the leading cause of identity theft in the US is credit card fraud.

The most common causes of identity theft in 2022:

Historical data shows that government documents and benefits fraud saw a major increase during the pandemic. The reason for this is that criminals started using stolen or fake identities to obtain pandemic benefits illegally.

Identity theft reports by category (2018-2022):

Victims of Identity Theft

In the following section, we take a look at where in the US identity theft is most common and which segments of the population are most likely to fall victim.

Identity Theft By State

Georgia registered the highest number of identity theft reports per 100k inhabitants, having 60,348 reports filed over the course of a single year.

Puerto Rico is the state with the lowest number of identity theft reports per 100k inhabitants, with only 1,537 reports.[2]

Identity Theft By Age

People ages 30 to 39 are most likely to get their identities stolen, followed by 40 to 49-year-olds.[2]

This could be due to the fact that by that age most people already have a stable job and a higher income. Their identity details are used more often and are more vulnerable to theft and more attractive to thieves.

People over 60, as well as those under 19 years of age, are least likely to fall victim to identity theft.

Identity Theft By Income

A bulletin published by the Bureau of Justice Statistics shows that 51% of victims of identity theft had an annual income of $75,000 or more.[3] Trusted source
Bureau of Justice Statistics
The Bureau of Justice Statistics is the primary federal agency in charge of monitoring crime and the administration of criminal and civil justice systems.

People with an annual income of $24,999 or less accounted for 12% of the victims.

Identity Theft By Gender

Gender does not seem to be a key factor when identity thieves choose their victims. Males (48%) and females (52%) are almost equally likely to be victims of identity theft.[3]

Identity Theft By Race

White communities reported identity theft incidents the most, making up 71% of all identity theft victims, with indigenous and multiracial persons being the least ethnic groups to report these incidents.[3]

Let’s compare those figures to the same groups as a percentage of the population.

RacePercent of PopulationPercent of Identity Theft Victims
White60.1%71.44%
Black13.4%9.06%
Hispanic18.5%11.73%
Asian5.9%5.15%
Other2.1%2.63%

These figures indicate that whites are slightly more likely to be targeted by identity thieves. This may be because the white population tends to be more affluent, and as we established earlier, 51% of victims of identity theft had an annual income of $75,000 or more.

It is not clear whether identity thieves are deliberately targeting more affluent individuals or more affluent individuals are simply more active in credit markets, leaving their identifying information more exposed.

The Financial Impact of Identity Theft

In 2022, overall identity fraud damages suffered by U.S consumers reached $8.8 billion (USD). Unfortunately, the numbers seem to increase year by year as identity thieves come up with new ways of scamming their victims.[4]

The majority of victims will lose up to $100, but 14% of the victims lost more than $10,000 as a result of identity theft.[4]

If we take into consideration the total number of reports, that means that the average loss occurring as a result of identity theft is around $650 per victim.

Prevention and Resolution

Catching identity theft early on can significantly reduce the damage from your information being exposed. There are countless ways for thieves to get hold of your information so make sure you know how to detect signs of identity theft and what to do about it if it happens.

What People Do to Prevent Identity Theft

According to a report by the Bureau of Justice Statistics, the most common measures people take in order to prevent ID theft are checking their bank and credit card statements as well as destroying documents with personal information.[3] Trusted source
Bureau of Justice Statistics
The Bureau of Justice Statistics is the primary federal agency in charge of monitoring crime, criminal victimization, criminal offenders, crime victims, crime correlates, and the administration of criminal and civil justice systems at the federal, state, tribal, and municipal levels.

Only 9% of respondents reported paying for any type of identity theft protection service such as LifeLock by Norton. These services are commonly used by people who are at high risk or who believe their identities have already been compromised.

How Long It Takes to Fix the Issue

More than half (55%) of the victims managed to resolve the financial and credit problems associated with their identity being stolen in 1 day or less.

Victims of the misuse of one type of existing account were more likely to solve the problems within one day after reporting the incident (57%) than the victims with multiple accounts affected.[3]

People who resolved the issue in one day or less

Identity theft is a common and growing problem, and identity thieves are constantly looking for new ways to steal personal information. Knowledge and awareness are the keys to protecting yourself and limiting the damage if you are targeted.

📘 Check out our article “12 Essential Steps to Prevent Identity Theft” if you want to learn more about it.

FAQ:

How to report identity theft?

The first thing would be to report the identity theft to The Federal Trade Commission. After that you have to notify your financial service provider about the incident. Make sure you have an account statement or bill with you when you call.

How to prevent identity theft?

To prevent identity theft from happening, check your bank and credit card statements regularly, make sure to destroy all your documents containing personal information before discarding them and use Two-Factor Authentication to prevent your data from being stolen.

How to check for identity theft?

To see if you’re a victim of identity theft, check your credit card or bank account statements for unauthorized account activity or for unfamiliar accounts in credit reports.

How easy is it for someone to steal your identity?

A thief who has as little as your name and Social Security number in their possession can access your accounts and can even apply for credit in your name. That is why we strongly recommend checking your documents regularly and taking additional steps to prevent identity theft.

Can I lock my Social Security number?

To lock your Social Security Number, you can call the National 800 number and ask to Block Electronic Access. (Toll-Free 1-800-772-1213 or at their TTY number at 1-800-325-0778).

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