Humanizing Our Experience with Money

All the financial data is finally available, time to humanize our experience with money.

Today, we break down the latest 2022 data from the U.S. Census Bureau, the US Bureau of Labor Statistics, as well as the Federal Reserve Survey of Consumer Finances. The TFG reflects on how statistics can be used as a proactive tool and how the numbers humanize the average American’s experience with money.

For the uninitiated, net worth is equal to your assets minus your liabilities. Additionally, although the term average gets tossed around, it’s statistically improper to use. This is why you will also see the mean. In total, all of these surveys exclude extremely billionaire outliers since it would throw us all off. Instead, they opt to nich down from ultra elites around $20 million and downward.

With all that aside, let’s jump into the numbers and how you can use them to your advantage.

Table of Contents

Wait, the Average American is a Millionaire?

According to the 2022 Federal Reserve Consumer Finance Survey, the average American household’s net worth, adjusted for inflation, was $1.06 million. This represents nearly a 10 percent year-over-year average annualized increase. Asian Americans carried the highest net worth average. See Graphic #1 Below

While the median net worth of Americans in 2022 was $192,700; the Asian American demographic bolstered an impressive $536,000. See Graphic #2 below. Basically, 1 in every 2 Asian households in the US are half millionaires.

How is this possible?

The focus is on educational attainment, high-paying degrees, home ownership, and marriage. This is the recipe to gain access to the 8.8% of true millionaires.

While the median family income was $70,300, Asian households had nearly 54 percent more. Homeowners overall had a stronger mediant worth with $396,200 versus $10,400 for renters. Gen Z (younger than 35) has a net worth of $39,040 while the Older Boomers (ages 65 and 74) have about 11 times higher at $410,000. Taken from an Educational Attainment perspective, the median net worth of Americans with a college degree was $464,400 versus High school grads with $106,800.

There are direct correlations to how we view ourselves in the numbers. If you aren’t where you feel you need to be; change! Make the pivot and see how your experience with money evolves.

What’s your money story

The Financial Griot is a play on two words (Finance + Griot) that hold significance in closing the wealth gap while embracing our differences. We tell the stories that others don’t. Stories about growth, opportunity, and embracing changes. Beyond that, we talk about Finances. Specifically, how to become Financially literate, incorporate actionable steps, and ultimately build generational wealth.

Can you imagine being a Millionaire in 20 years or less? Yeah, it’s possible. 80% of millionaires are the first generation. That means they didn’t come from wealth. We teach you how. Join a community of subscribers who welcome a fresh take on money.

So there you have it, The Financial Griot, or TFG for short. The hosts were able to amass over $3 Million in wealth in about eight years and are on track to retire early. We will gladly share the secrets if you want them since the opportunity is abundant and Win-Win.

Resources:

Connect with the TFG Crew Hosts:

Alainta Alcin – Blogger, Travel and Money Enthusiast @alainta_alcin
Lawrence Delva-Gonzalez – Financial Foodie and World Traveler @theneighborhoodfinanceguy
Lovely Merdelus – Entrepreneur and Small Business Growth Specialist @lovelymerdelus