Spending by Age, 2006 to 2013

Average household spending fell 8.6 percent between 2006 (the peak year) and 2013, after adjusting for inflation—from $55,926 to $51,100. According to a Demo Memo analysis of the Consumer Expenditure Survey, only 16 percent of the $4,826 decline in average household spending during those years was due to the aging of the population—a consequence of the large baby-boom population getting older, retiring, and reducing its spending.

Most of the decline in average household spending was due to budget cutting in all but one age group. Here is average household spending by age of householder in 2013 (and percent change since 2006; in 2013 dollars)...

Under age 25: $30,373 (-6.7%)
Aged 25 to 34: $48,087 (-12.5%)
Aged 35 to 44: $58,784 (-11.5%)
Aged 45 to 54: $60,524 (-9.0%)
Aged 55 to 64: $55,892 (-4.8%)
Aged 65-plus: $41,403 (+2.2%)

In dollar terms, households headed by people aged 35 to 44 cut their spending the most. In 2013, these households spent a substantial $7,632 less than they did in 2006, after adjusting for inflation.

Source: Bureau of Labor Statistics, Consumer Expenditure Surveys

Spending in 2013: Another Decline

Average household spending peaked in 2006, just prior to the Great Recession, and has yet to recover. In 2013, the average household spent just $51,100, according to the latest numbers from the Consumer Expenditure Survey. This is 2.1 percent less than the average household spent in 2012 and fully 8.6 percent less than it spent in 2006, after adjusting for inflation. Here is average annual household spending from the peak spending year of 2006 through 2013 (in 2013 dollars), and the percent change in spending from the preceding year...

2013: $51,100 (-2.1%)
2012: $52,196 (+1.4%)
2011: $51,477 (+0.2%)
2010: $51,397 (-3.5%)
2009: $53,280 (-2.5%)
2008: $54,626 (-2.1%)
2007: $55,770 (-0.3%)
2006: $55,926 (+1.0%)

Note that the 2012-13 spending decline of 2.1 percent is equal to the decline that occurred between 2007 and 2008—in the midst of the Great Recession.

Source: Bureau of Labor Statistics, Consumer Expenditure Survey

Why Renters Aren't Buying

Renters aren't becoming homeowners like they once did. Is that because they don't want to own a home or because they can't afford to buy? To determine the answer, the Federal Reserve Bank of New York added a series of questions on its Survey of Consumer Expectations, fielded in February. Were renters planning on moving in the next three years? Among those who planned to move, would they rent or buy their next home? If they did not plan to buy, why not?

It turns out most renters who plan to move and rent rather than buy just don't have the money to become homeowners. The 56 percent majority of these potential homebuyers say they don't have enough money saved or they have too much debt to buy a home.

Source: Federal Reserve Bank of New York, Liberty Street Economics, Why Aren't More Renters Becoming Homeowners?

Household Income Stable in July 2014

Median household income inched up to $54,045 in July 2014, according to Sentier Research. This was a statistically insignificant $105 more than in June, after adjusting for inflation. The July 2014 median was 1.7 percent higher than in July 2013, however, and 4.2 percent more than the $51,843 of August 2011—the low point in Sentier's household income series. 

"The period since August 2011 has been marked by an uneven, but generally upward trend in the level of real median annual household income," reports Sentier. "Many of the month-to-month changes in median income during this period have not been statistically significant. However, the cumulative effect of the various month-to-month changes since August 2011 resulted in the income improvement." Sentier's median household income estimates are derived from the Census Bureau's monthly Current Population Survey.   

Median household income in July 2014 was 2.9 percent below the median of June 2009, the end of the Great Recession. It was 4.6 percent below the median of December 2007, the start of the Great Recession. It was 5.7 percent below the median of January 2000. For more information on household income trends for the nation, states, and metropolitan areas, visit the Sentier Research web site.

Source: Sentier Research, Household Income Trends: July 2014

Household Wealth, 2007 to 2013

Bad news: Americans are still reeling from the Great Recession, according to the latest findings from the Survey of Consumer Finances. Median household net worth fell 40 percent between 2007 and 2013, after adjusting for inflation. Although most of that decline occurred between 2007 and 2010, net worth continued to drift downward between 2010 and 2013.

Median household net worth, 2007 to 2013 (in 2013 dollars)

2013: $81,200

2010: $82,800

2007: $135,400

Many households experienced double-digit declines in net worth between 2010 and 2013, after adjusting for inflation. Households headed by people aged 45 to 54, for example, saw their net worth fall by an additional 17 percent during those years, following a 39 percent decline between 2007 and 2010. Other household segments experiencing double-digit declines in net worth between 2010 and 2013 were those headed by people 55 to 64, aged 75 or older, without a high school diploma, with only some college, and the broad segment "nonwhites or Hispanics." 

Source: Federal Reserve Board, Survey of Consumer Finances

The Complete Guide to Young Adults in Four Numbers

Median annual earnings of 20-to-24-year-olds who are not in school, by highest level of educational attainment, 2000 and 2012 (in 2012 dollars)...

High school graduates
2000: $20,800
2012: $15,930

Bachelor's degree or more
2000: $29,700
2012: $24,990

Source: Forum on Child and Family Statistics, America's Young Adults, Special Issue 2014

Who Has a Basement?

Only 29 percent of the 569,000 new single-family homes completed in 2013 included a basement. Basements are uncommon in new homes because most are being built in the South, where basements are a rare commodity. Here is the number of new single-family homes completed in 2013 (and the percent with a basement) by region...

Northeast: 48,000 (71%)
Midwest: 96,000 (72%)
South: 296,000 (10%)
West: 129,000 (27%)

Source: Census Bureau, Characteristics of New Housing

Big Cities Are More Affordable than You Think

When comparing the cost of living in various cities, housing dominates the discussion. That's because housing is our biggest expense. In 2012, the average American household spent $16,000 on shelter and utilities—32 percent of the household budget.

But according to an analysis of HUD data by the Citizens Budget Commission (CBC) of New York City, reported on in Better Cities and Towns, there is a second variable that should be included in the affordability equation: transportation, which is the the second biggest household expense. In 2012, the average household spent $9,000 on transportation—17 percent of the household budget.

Walkable cities with public transportation can be more affordable than sprawling cities where residents must devote a hefty portion of their budget to vehicles and gasoline. It turns out, New York City is affordable after all. The average New York City household spends only $5,752 annually on transportation—well below the national average. Long thought to be one of the most expensive places to live, the combined cost of housing and transportation in New York City is lower than in 13 of 22 cities examined by the CBC, including Miami, Atlanta, Phoenix, Seattle, Austin, and Jacksonville.

Source: Better Cities and Towns, Why San Francisco, New York and DC May Be More Affordable than You Thought

Characteristics of Minimum Wage Workers, 2013

The federal minimum wage is $7.25 per hour. Nationally, 3.3 million workers are paid minimum wage or less. Here are some of their characteristics...

Percent who work full-time: 35.5%
Percent with college experience: 42.2%
Percent who live in the South: 46.4%
Percent food prep workers: 46.7%
Percent aged 25 or older: 49.6%

Source: Bureau of Labor Statistics, Characteristics of Minimum Wage Workers, 2013 (pdf)

Favorite Musician by Generation

"Who is your favorite singer/musician or band?"

Millennials: Beyoncé
Gen Xers: Metallica
Boomers: Beatles
Matures: Willie Nelson

Source: Harris Interactive, In the Great Debate over Beatles vs. Elvis, Beatles are America's Favorite Band while Elvis is Musical Artist Number Two

Grading the Public Schools, 2014

Percent of Americans who would give a grade of A or B to...

Public schools in the nation: 17%
Public schools in their community: 50%
Public school their oldest child attends: 67%

Source: PDK/Gallup Poll, 46th Annual PDK/Gallup Poll of the Public's Attitudes toward the Public Schools

Pets vs. Babies

Percent change in average household spending, 2006 to 2012 (in 2012 dollars)...

Pet food: +29%
Pet supplies: +116%

Baby food: -35%
Baby clothes: -42%

Source: Bureau of Labor Statistics, Consumer Expenditure Surveys

Who's Rich, by Age

The median net worth of the top 20 percent (highest quintile) of households was $630,754 in 2011 (the latest data available). Here is the median wealth of the highest quintile of households by age of householder...

Under age 35: $153,616
Aged 35 to 44: $448,824
Aged 45 to 54: $654,229
Aged 55 to 64: $889,867
Aged 65-plus: $899,608

Source: Census Bureau, Detailed Tables on Distribution of Wealth and Debt

Age Difference between Husbands and Wives, 2013

Percent distribution of married couples by age difference between husband and wife...

Husband 2+ years older than wife: 53%
Husband and wife within 1 year: 33%
Wife 2+ years older than husband: 14%

Source: Census Bureau, America's Families and Living Arrangements: 2013

The Police: Friend or Enemy?

"Do you generally think of the police more as friends, more as enemies, or don't you think of them in either of these ways?" asks a New York Times/CBS News poll.

Overall, 42 percent of Americans regard the police as their friend, 10 percent regard the police as their enemy, and 44 percent say the police are neither friend nor enemy. Here is the percentage of Americans who think of the police as their friend (or their enemy)...

Blacks: 23% (13%)
Whites: 49% (9%)

Men: 36% (15%)
Women: 48% (7%)

Aged 18-44: 29% (16%)
Aged 45-plus: 53% (5%)

Source: New York Times and CBS News, Reactions to the Shooting in Ferguson, Mo., Have Sharp Racial Divides

Trends in Household Debt, 2000 to 2011

Percentage of households with any debt (and median debt), 2000 to 2011 (in 2011 dollars)...

2011: 69.0% ($70,000)
2010: 69.6% ($74,300)
2009: 72.0% ($72,900)
2005: 73.6% ($71,800)
2004: 73.8% ($69,000)
2002: 74.9% ($56,400)
2000: 74.2% ($49,600)

Source: Census Bureau, Detailed Tables on Debt

Plunge in Teen Birth Rate

Teen births were not a problem in 1960. They were the norm. For every 1,000 women aged 15 to 19 in 1960, fully 89.1 babies were born. Today, there are only 26.6 babies born for every 1,000 women aged 15 to 19—a 70 percent decline. The overall birth rate in 2013 (62.9 births per 1,000 women aged 15 to 44) is lower than the teen birth rate of 1960.

Teen births became a problem as marriage became less important. In 1960, half of women were married by age 20.3. Most "teen" births were to married women. Today, the median age at first marriage is 26.6 and most teen births are to single mothers.

Source: National Center for Health Statistics, National and State Patterns of Teen Birth in the United States, 1940-2013

Who Carries the Most Cash?

Austrians carry the most cash, according to a Federal Reserve Bank of Boston analysis of payment diary surveys in a number of countries. In Austria, the average person has $114 in his or her wallet (in US dollars). Germany is second, with the average person carrying $94. In the United States, the average person carries only $37.

The popularity of cash varies by country. Austrians and Germans carry more cash than Americans because they use cash more often. In both Austria and Germany, fully 82 percent of transactions are paid with cash versus 46 percent of transactions in the United States. Debit cards are more popular in the U.S., accounting for 26 percent of transactions versus only 13 to 14 percent of those in Austria and Germany. Credit cards account for a substantial 19 percent of transactions in the United States versus just 2 percent in Austria and Germany.

Source: Federal Reserve Bank of Boston, Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data

Death Rates by State

The overall age-adjusted death rate was 741.3 deaths per 100,000 population in 2011. By state, the death rate ranged from a low of 584.9 in Hawaii to a high of 956.1 in Mississippi. These are the five states with the lowest and highest age-adjusted death rates...

LOWEST
1. Hawaii
2. California
3. Minnesota
4. Connecticut
5. New York

HIGHEST
1. Mississippi
2. West Virginia
3. Alabama
4. Oklahoma
5. Kentucky

Source: CDC, QuickStats: Age-Adjusted Death Rates, by State—United States, 2011

Eating Organic

Overall, 45 percent of Americans aged 18 or older say they actively try to include organic food in their diet. The figure is highest in the West (54%) and in cities (50%). By age, this is the percentage who try to eat organic...

Aged 18 to 29: 53%
Aged 30 to 49: 48%
Aged 50 to 64: 45 %
Aged 65-plus: 33%

Source: Gallup, Forty-Five Percent of Americans Seek Out Organic Foods