Americans finally got a raise last year. The U. The rising income tide lifted many boats. The reason for the hike, says Trudi J. Renwickone of the assistant division chiefs at the Census Bureau, was largely the monsy in employment. Moreover, fewer people were living in poverty, with a drop from But before we start popping the corks and proclaiming that the good times are here again, there were some depressingly stubborn figures emerging from the new report as. Women are still much more likely to be living in poverty than men. A family is defined as living in poverty if they make less than what the policy wonks think they need to make to live. Mohey practice, this means that even as America recovers from the economic shocks ofit has not solved some fundamental problems for its poorest citizens. Inmore than 43 million Americans, or the equivalent of the population of Argentina, did not have what they needed to get by. That figure only went down half a percentage point in the past year.
High Cost of Living Is the No. 1 Obstacle to Saving in America
Millennial households «now earn more than young adult households did at nearly any time in the past 50 years,» Pew adds, though it may not be for the reason you expect: «The growth in household incomes among young adults has been driven in part by Millennial women, who are working more — and being paid more — than young women were in previous years. In , 78 percent of women in millennial households worked at least 50 weeks over the course of the year; in , 72 percent did. It’s not just this age group that saw their earnings increase: Incomes of households headed by baby boomers — defined as those age 54 to 72 — are also at record levels. Overall, the Census Bureau found that the median US household income rose 1. The gain was actually smaller than it has been in previous years: 5. The gain was also «driven by increased employment, rather than increased pay. The average annual earnings of both male and female full-time workers actually declined last year, but that drop was offset in the national data by the increase in the number of people with jobs,» The New York Times points out. And the larger problem is that even this increase in earnings may not be enough.
Earning and Spending, by Income Group
That’s because the average paycheck has the same purchasing power it did 40 years ago, according to a different report from Pew. So though American households may be earning more, salaries still aren’t going as far as they used to to cover the necessities, let alone the soaring cost of college, housing, health care and child care. As a result, Americans of all ages are struggling to get by. Many are turning to part-time gigs or side hustles. About four in 10 Americans hold some kind of second job, according to a July Bankrate survey. That rate is higher among millennials: 51 percent. While Americans born in the s had a 92 percent chance at making more money than their parents, millennials born in the s only have about a 50 percent chance of doing the same. Just over 60 percent of millennials with debt don’t know when, or if, they’ll ever be able to pay off what they owe. Don’t miss: Tony Robbins: Here’s how to retire rich on a normal person’s income. Like this story? Get Make It newsletters delivered to your inbox. All Rights Reserved. Skip Navigation.
The full wage breakdown
Related Topics: expenses income group money. How can it be a success? Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed. Fourth place company Transdigm Group gains its stronghold by developing specialized amercians for the aerospace industry. Email address. Fortunately, there are other things you can do that might make it easier to save money.
Why the news may not be as good as it seems
Simply put, the more income a household generates, the higher the portion that can be spent on items other than the usual necessities housing, food, clothing, etcand the more that can be saved or invested for the future.
The average U. In terms of money going out, the highest allocation goes to housing These contain an average of 1. How do the inflows and outflows of the average American household compare to the lowest income quintile?
Further, cash comes in from many different sources, showing that there are fewer dependable sources of income for families to rely on. For expenditures, this group spends the most on housing These contain an average of 3.
This group spends just over half of its income, with top expenses being housing Get your mind blown on a daily basis:. While your wealth is most likely driven by the dollars in your bank account and the value of your stock portfolio and house, wealth also includes a number of smaller things as well, such as the old furniture in your garage or a painting on the wall. What is the value of a new toll bridge, or an aging nuclear power plant?
Interestingly, the United States economy makes up Behind the U. As the country continues to build out its middle class, one estimate sees Chinese private wealth increasing by Impressively, the combined wealth of the U. The remaining companies were sorted based on their total return, with reinvested dividends, from December 31, to December 5, Streaming giant Netflix takes the 1 spot.
One such rival, Amazontakes its spot at 10 in the best-performing stocks of the decade. From its humble roots as an online bookseller, the company has transformed into an ecommerce leader. At 12 on the list, Constellation Brands —owner of several alcohol brands such as Corona—is also no stranger to invention. Other well-known names on the top 20 list include discount department store chain Ross Stores 15 and the credit card company Mastercard 17with the latter benefiting from an oligopoly in the industry.
Well established among institutional investors and broker-dealers, MarketAxess Holdings takes the 2 spot. In third place, healthcare technology company Abiomed develops medical devices that provide circulatory support. Fourth place company Transdigm Group gains its stronghold by developing specialized products for the aerospace industry.
It has a strong acquisition strategy as well, having acquired over 60 businesses since its formation in If we organize the top 20 by sectorinformation technology stocks appear in the list most frequently with five companies, followed by consumer discretionary 4 companiesand industrials and healthcare 3 companies.
Sectors with less representation in the top 20 are communication services 2 companiesas well as consumer staples, financials, and real estate 1 company.
While these stocks have performed extremely well over the last decade, they are not necessarily the best portfolio additions today. Some companies may have become overvalued, or be facing new competition in their industry—as is the case with Netflix. However, the top 20 stocks do demonstrate the power of a buy-and-hold strategy. Email address. Connect with us. How do you spend your hard-earned money?
Interestingly, the average U. Get your mind blown on a daily basis: Thank you! Given email address is already subscribed, thank you!
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You may like. Published 3 days ago on January 16, By Jeff Desjardins. Ranking Countries by Total Wealth Which countries are the richest? Published 1 month ago on December 18, By Jenna Ross. So, which stocks come out on top? Household Names Streaming giant Netflix takes the 1 spot. A Sector View If we organize the top 20 by sectorinformation technology stocks appear in the list most frequently with five companies, followed by consumer discretionary 4 companiesand industrials and healthcare 3 companies.
The Bottom Line While these stocks have performed extremely well over the last decade, they are not necessarily the best portfolio additions today. Markets 1 year ago. Maps 1 year ago. Advertising 11 months ago. Misc 1 year ago. Advertising 10 months ago. Technology 1 year ago. Chart of the Week 1 year ago. Environment 11 months ago.
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Inin the wake of the financial crisis, Americans were struggling to find jobs and watching their investments tank. A decade later, things have bounced back quite a bit. However, wages remain relatively stagnant. Today’s typical wages have about the same purchasing power they did more than 40 years ago, according to the Pew Research Center.
How does your income compare?
Plus, DeSilver points out, «what wage gains there have been have mostly flowed to the highest-paid tier of workers. Historical numbers are adjusted for inflation. These stagnant wages make it difficult for young people to reach the same financial milestones as their parents and grandparents, including paying for college or buying a home. To make things worse, life is getting more expensive. Americans struggle to stretch their paychecks to cover several financial priorities at. For many, that means putting some goals on hold.
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