Household Economic Well-Being in 2013

Disturbing findings have emerged from a Federal Reserve Board survey of the economic well-being of American households in 2013. While the average household is doing alright, many are not. The struggling segments are large enough to raise eyebrows and pose a potential threat to the stability of the overall U.S. economy. These are the some of the worrisome findings...

• 34% of households say they are worse off financially than they were five years ago. 
• 45% did not save any portion of their income in 2012.
• 58% do not have a rainy day fund that could cover expenses for three months.
• 45% of renters say they rent because they can't afford a down payment.
• 24% of households have education debt, owing a median of $15,000.
• 37% of those with education debt say the cost outweighs the benefits.
• 44% of households bought lottery tickets in the past year; only 33% own stock.
• 54% would have to go into debt or be unable to pay an unexpected $400 expense.
• 28% of householders aged 60-plus say their retirement plan is to keep working.

Source: Federal Reserve, Report on the Economic Well-Being of U.S. Households in 2013