U.S. Family Mean Income Data (2007)
450
397.7
400
Thousand Dollars
350
Note: National median was $47,300.
National mean was $84,300.
300
250
200
150
116
100
76.6
47.3
50
28.3
12.3
0
Bottom
20%
Next
20%
Middle
20%
Next
20%
Next
10%
Top
10%
Average Starting Salary Offers for 2009 Bachelor's Degree Graduates
Chemical Engineering:
Computer Engineering:
Computer Science:
Electrical Engineering:
Engineering:
Information Sciences:
Civil Engineering:
Finance:
Economics:
Accounting:
Business Administration:
Marketing:
History:
Liberal Arts:
English:
Psychology:
Sociology:
$64,902
$61,738
$61,407
$60,125
$59,254
$52,089
$52,048
$49,940
$49,829
$48,993
$44,944
$43,325
$37,861
$36,175
$34,704
$34,284
$33,280
Source: Campus Grotto.com, http://www.campusgrotto.com/average-starting-salary-by-degree-for-2009.html
Percent of Families that Save, by Income Category (2007)
90
80
70
85
Nationally, 57% of all families
saved in 2007.
67
58
60
Percent
73
50
45
40
34
30
20
10
0
Bottom
20%
Next
20%
Middle
20%
Next
20%
Next
10%
Top
10%
U.S. Family Mean Net Assets Data (2007)
4500
3976
4000
3500
Note: National median was $120,300.
National mean was $556,300.
Thousand Dollars
3000
2500
2000
Note: 66% of assets are non-financial.
1500
1000
586
500
227
-2.3
58
Bottom
25%
Next
25%
0
-500
Next
25%
Note: Total household assets have fallen about 20% since 2007.
Next
15%
Top
10%
U.S. Family Median Net Assets, by Demographics (2007)
300
281
Median Net Worth (*$1000)
250
200
170
150
100
80
50
0
28
High
School
Degree
College
Degree
Nonwhite / White NonHispanic
Hispanic
Household Debt
1,600
1,400
Billions of Dollars
1,200
1,000
Non-revolving
800
600
400
Revolving
200
0
1970
1975
1980
1985
1990
1995
2000
Year
Non-revolving debt equals $13,600 per household (e.g., college loans, auto loans).
Revolving debt equals $8,100 per household (credit card debt).
Source: Statistical Abstract of the United States.
2005
Home Mortgage Debt (1970-2007)
12,000
Billions of Dollars
10,000
8,000
6,000
4,000
2,000
0
1970
1975
1980
1985
1990
Year
About $100,000 per household.
Source: Statistical Abstract of the United States.
1995
2000
2005
Personal Bankruptcies in the U.S.
1,800
1,600
Bankruptcies Filed (*1000)
1,400
1,200
1,000
800
600
400
200
0
1985
1990
1995
2000
Year
Source: http://www.uscourts.gov/bnkrpctystats/bankruptcystats.htm
2005
2010
Consumer Expenditure Survey (2007)
Bottom
20%
Second
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
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
Alcohol
Middle
20%
Fourth
20%
Top 20%
Credit Card Debt in the United States
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%
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
25
21.1
Historical annualized rate of return is about 9% (a little
less than 7% adjusting for inflation).
Average of Annual Returns
20
18.3
19.1
15
8.7
10
7.5
5
1.2
0
1950s
1960s
1970s
1980s
1990s
2000s
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.