u.s. family mean income data (2007) note: national median was $47,300. national mean was $84,300....
TRANSCRIPT
U.S. Family Mean Income Data (2007)
12.328.3
47.3
76.6
116
397.7
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Note: National median was $47,300. National mean was $84,300.
Bottom 20%
Next 20%
Middle 20%
Next 20%
Next 10%
Top 10%
Average Starting Salary Offers for 2009 Bachelor's Degree Graduates
Chemical Engineering: $64,902Computer Engineering: $61,738Computer Science: $61,407 Electrical Engineering: $60,125Engineering: $59,254Information Sciences: $52,089Civil Engineering: $52,048 Finance: $49,940Economics: $49,829Accounting: $48,993Business Administration: $44,944 Marketing: $43,325 History: $37,861Liberal Arts: $36,175 English: $34,704Psychology: $34,284Sociology: $33,280
Source: Campus Grotto.com, http://www.campusgrotto.com/average-starting-salary-by-degree-for-2009.html
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Percent of Families that Save, by Income Category (2007)
Bottom 20%
Next 20%
Middle 20%
Next 20%
Next 10%
Top 10%
Nationally, 57% of all families saved in 2007.
-2.3 58227
586
3976
-500
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Th
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rsU.S. Family Mean Net Assets Data (2007)
Bottom 25%
Next 25%
Next 25%
Next 15%
Top 10%
Note: National median was $120,300. National mean was $556,300.
Note: 66% of assets are non-financial.
Note: Total household assets have fallen about 20% since 2007.
U.S. Family Median Net Assets, by Demographics (2007)
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28
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170
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Me
dia
n N
et
Wo
rth
(*$
10
00
)
High School Degree
College Degree
Nonwhite / Hispanic
White Non-Hispanic
0
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1,000
1,200
1,400
1,600
1970 1975 1980 1985 1990 1995 2000 2005
Year
Bil
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of
Do
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Household Debt
Non-revolving
Revolving
Source: Statistical Abstract of the United States.
Non-revolving debt equals $13,600 per household (e.g., college loans, auto loans).
Revolving debt equals $8,100 per household (credit card debt).
0
2,000
4,000
6,000
8,000
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1970 1975 1980 1985 1990 1995 2000 2005
Year
Bil
lio
ns
of
Do
llar
sHome Mortgage Debt (1970-2007)
Source: Statistical Abstract of the United States.
About $100,000 per household.
Personal Bankruptcies in the U.S.
0
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800
1,000
1,200
1,400
1,600
1,800
1985 1990 1995 2000 2005 2010
Year
Ban
kru
ptc
ies
File
d (
*100
0)
Source: http://www.uscourts.gov/bnkrpctystats/bankruptcystats.htm
Bottom
20%Second
20%Middle 20%
Fourth 20% Top 20%
Income (after taxes) 10,534 27,419 45,179 70,050 150,927
Total expenditures 20,471 31,150 42,447 57,285 96,752
Food at home 2,005 2,741 3,333 3,980 5,265
Food away from home 1,030 1,519 2,349 3,262 5,179
Alcohol 176 272 413 506 917
Housing 8,285 11,390 14,388 19,017 31,492
Utilities 2,085 2,827 3,358 4,013 5,100
Apparel 765 1,042 1,654 2,092 3,849
Transportation 3,242 5,717 7,926 11,058 15,831
Healthcare 1,474 2,448 2,826 3,268 4,244
Entertainment 926 1,505 2,150 2,982 5,921
Education 614 346 532 692 2,541
Consumer Expenditure Survey (2007)
Year Debt per Household
w/ Cards % Change
1995 $5,8000 19.4%
1996 $6,634 12.7%
1997 $6,811 4.2%
1998 $6,885 1.1%
1999 $7,342 6.6%
2000 $8,114 10.5%
2001 $8,288 2.2%
2002 $8,724 5.3%
2003 $8,664 -0.7%
2004 $8,918 2.9%
2005 $9,184 3.0%
2006 $9,686 5.5%
2007 $10,385 7.2%
Credit Card Debt in the United States
Source: Credit.com, http://www.credit.com/press/statistics/credit-card-statistics.html
College Students and Credit Cards (2008 data)
Percent of students with at least one credit card: 84%
Average number of cards per students: 4.6
Average credit card balance: $3,173
About 1/5 of seniors have balances in excess of $7,000
40% of students have charged items knowing they did not have the money to pay off the balance
Percent who pay off balance every month: 17%
84% indicated a need for more financial education
College drop-out rate due to debt: 8.5%
College drop-out rate due to academic problems: 6.0%
Sources: “How Undergraduate Students Use Credit Cards,” Sallie Mae, April 2009; and College Student Marketing Agency, http://www.ucms.com/college-credit-card-statistics.htm.
College Students and Credit Cards
Source: “How Undergraduate Students Use Credit Cards,” Sallie Mae, April 2009.
College Students and Credit Cards
Source: “How Undergraduate Students Use Credit Cards,” Sallie Mae, April 2009.
New Credit Card Rules
New Credit Card Rules
No interest rate increases on pre-existing balances.
No interest rate increases for the first 12 months.
45-day notice for interest rate increases.
Billing statements must be sent 21 days prior to due date.
Payments above the minimum are automatically applied to highest-rate balances.
Under age 21 requires co-signer or proof of ability to pay.
However, still no federal legal limit on maximum interest rates (typical maximums are around 30%).
Compulsive Shopping
About 6% of Americans are compulsive shoppers, or about 17.6 million. This is higher than the number of alcoholics (estimated to be around 15 million) .
Major Stock Market Indices
Dow Jones Industrial Average – Index based on the stock value of 30 very large U.S. corporations (e.g., ExxonMobil, GE, GM, IBM, Citigroup, Coca-Cola, Home Depot, Boeing), see http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average.
Standard and Poor’s (S&P) 500 – Index based on the stock prices of 500 large, mostly U.S. corporations (see http://en.wikipedia.org/wiki/List_of_S%26P_500_companies for full list).
Nasdaq Composite – Index based on the stock prices of about 3,000 “technology and growth” companies, mostly based in the U.S. (see http://en.wikipedia.org/wiki/Nasdaq_Composite)
Average Annual Rates of Return, S&P 500
21.1
8.77.5
18.319.1
1.2
0
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1950s 1960s 1970s 1980s 1990s 2000s
Ave
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ual
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Historical annualized rate of return is about 9% (a little less than 7% adjusting for inflation).
The S&P 500 over Last Five Years
Source: Yahoo Finance, March 30, 2010.
The S&P 500 Historically
Source: Yahoo Finance.
Source: “2007 Report on Socially Responsible Investing Trends in the United States,” Social Investment Forum, 2008.