Chart of the Week: How does the average American household spend their money?
From our friends at Visual Capitalist:
- What is the largest income source for American households?
- What percent of a household's income covers federal, state and local taxes?
- What is the savings rate for the average American household (Hint: Divide Savings by Total Income to establish the savings rate)?
- What are the five largest costs? Do you think these five costs are wants or needs?
- One rule of thumb is that you shouldn't spend more than 30% of your total income on housing. How is the average American household compared to this rule of thumb?
- How charitable is the average American household?
Use NGPF Data Crunches to develop your students' analytical skills.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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