In Income a and W Wealth o of t the Av Average ge Fami mily - - PDF document

In Income a and W Wealth o

• f t

the Av Average ge Fami mily in n the he USA SA

Consider these questions:

• What are the trends of family income with respect to age?

Education? Work status?

• What proportion of income comes from wages? investments?
• What is the median family net worth? What about for families in

the top 10% of income distribution?

• What trends do you see w.r.t. respect to age? Education?

Geography? Work status?

• Describe trends of debt with respect to age, education, work status,

types of loans held

FRB: Triennial Survey of Consumer Finances

Th The Sur Survey of Co Cons nsum umer Fina nanc nces (SCF SCF) is a trienni nnial sur urvey of the ba balanc nce sh sheet, p pensi sion, i income, a and o

• ther d

r demogra raphic c chara racteri rist stics o s of U f U.S. fa families. s.

ht http://www.federalreserve.gov/pubs/oss/oss2/ 2/scfindex.ht html

Fa Fami mily Income ncome

An Annual before-tax x income amounts in 2007 2007 dollars. Wi Within a group, half of families are above the median, and hal half ar are be below the he medi dian an.

Fa Fami mily Net Net Wor

• rth

Ne Net worth h amounts in 2007 2007 dollars. Wi Within a grouping, half of families were above the median, an and d hal half were ere bel below the he medi edian an.

Wh What Kind of Assets?

Per Percen entag age e of non-fin finan ancial al an and d fin finan ancial al as asset ets hel held d by by ho househo holds ds. So Source: Su Survey of Co Consumer Fi Finances

Wh What Kind of Financial As Assets?

Per Percen entag age e of fam amilies es ho holdi ding eac each h fin finan ancial al as asset et typ ype. e. So Source: Su Survey of Co Consumer Fi Finances

How How Muc uch h Do Do Pe Peop

• ple Ha

Have in in F Fin inancia ial A Assets?

Me Median holdings each fi financial asset type, by income/age. So Source: Su Survey of Co Consumer Fi Finances

Fa Fami milies es Hol Holdi ding ng Debt ebt

Per Percen entag age e of fam amilies es ho holding debt, what kind of debt. So Source: Su Survey of Co Consumer Fi Finances

Rea Reasons sons for

• r Bor
• rrow
• wing

ng

Reas Reason for bo borrowing So Source: Su Survey of Co Consumer Fi Finances

One subtle problem with the use of these data is that, even though money is borrowed for a particular purpose, it may be employed to offset some other use of funds. For example, a family may have sufficient funds to pur- chase a home without using a mortgage but may instead choose to finance the purchase to free existing funds for another purpose.