Personal Finance Statistics: Where You Rank In 2023

Last Updated on August 23, 2023 by John Cirelly

The gig economy has evolved, and side hustles are more significant than ever in the personal finance arena. The trends are shifting, and 2023 brings a fresh perspective on how Americans perceive and approach these additional streams of income. Below we’ll explore the latest personal fiance statistics to see what the future holds.

Personal Finance Statistics For 2024

Average Household Bank Balance: $41,600

In 2019, the average household bank balance rested at $41,600. This showed a slight decline from the 2016 average of $42,580, according to the Federal Reserve. The decrease might signal various dynamics, from increased spending to shifts in investment strategies.

Median Household Bank Balance: $5,300

2019’s median—a figure often more insightful than averages—was $5,300. Encouragingly, this figure surpassed the 2016 median of $4,790, as presented by the Federal Reserve. The positive trend could suggest broader wealth distribution or an uptick in savings among more households.

Investment and Savings Average: $17,135

On average, Americans have stashed away $17,135 in investments or savings accounts, as unveiled in a PR Newswire survey. Interestingly, New Yorkers emerge as top savers, directing a commendable 14.5% of their income into such accounts. This highlights the significance of nurturing an investment-focused culture.

Living Paycheck to Paycheck: Not Just for the Low Income

An eye-opening 8% of individuals with over $100,000 annual earnings still live paycheck to paycheck. This revelation from Willis Towers Watson emphasizes that high earnings don’t always align with financial stability or astute money management.

Emergency Expenses: The $400 Hurdle

A notable 64% of American adults could tackle a sudden $400 expense using cash or its equivalent, as shared by the Federal Reserve. Disturbingly, of the other 35%, many would lean on credit without prompt repayment plans, and 12% would be completely stumped by such an expense.

Educational Impact on Financial Resilience

There’s an evident correlation between education and financial robustness. About 60% of adults with only a high school diploma (or less) would falter with their bills or an unforeseen $400 cost. On the flip side, a mere 24% of bachelor’s degree holders would be similarly challenged, a figure brought to light by the Federal Reserve. This gap underlines the lasting financial advantages of pursuing higher education.

Millennials and Gen Z Embrace Side Hustles

The entrepreneurial spirit is soaring among the younger generation. A recent Bankrate survey unveils that 53% of Gen Zers and 50% of millennials now have a side hustle. As they diverge from traditional career paths, these numbers highlight a dynamic blend of primary employment and entrepreneurial ventures signaling a proactive approach to financial independence.

Side Hustle Popularity by Generation

Generational attitudes toward side hustles vary remarkably. Only 24% of baby boomers venture into this realm, contrasted by 40% of Gen Xers. The growing side hustle trend among younger individuals could redefine the traditional norms of financial security, suggesting that dual income sources might soon be the standard.

Gender Disparities in Side Hustling

While side hustling sees participation across genders, men (43%) slightly edge out women (35%). This disparity might stem from various factors ranging from accessibility to opportunities to differing financial philosophies. As the quest for gender equality advances, we might witness a narrowing of this gap in upcoming years.

Side Hustles Across Income Brackets

Contrary to the stereotype that side hustles cater to the financially struggling, 45% of individuals earning over $100,000 annually engage in them. This data, courtesy of Bankrate, hints that side hustles are gaining traction as strategic financial tools, useful for both wealth enhancement and personal passion projects.

Average Monthly Side Hustle Earnings

Earnings from side hustles are as diverse as the hustles themselves. On average, a side hustler accrues an extra $810 each month. Yet, a significant disparity exists; while 28% earn a nominal $1 to $50, an encouraging 15% rake in more than $1,000. And yes, gender plays its part, with men averaging $989 versus women’s $603. The evolving gig economy landscape might just be the solution to bridge this gender earnings divide.

Generational Earnings from Side Hustles

When it comes to generational earnings from side hustles, millennials top the list, netting an impressive average of $1,022 monthly. Hot on their heels are Gen Z, Gen X, and the baby boomers. This trend indicates that side hustles could soon transform into pivotal wealth-generating mechanisms for the youth.

Side Hustle Funds: Essential vs. Discretionary

The purpose behind the hustle matters. A significant 33% of side hustlers lean on these extra funds for essential daily expenses. Intriguingly, this reliance is more pronounced among women than men. This trend casts a spotlight on the growing financial strains many face, emphasizing the importance of diversifying income sources to navigate rising costs of living.

The Long-term Role of Side Hustles

For some, side hustles are not just a fleeting phase but a long-term strategy. A significant 28% consider their side hustle indispensable for basic sustenance, while another 26% view it as a reservoir for discretionary expenses. These figures foretell a fluid future where the lines between main employment and side ventures could blur, heralding a new era of work and financial management.

Concusion: Personal Finance Statistics

The surge in side hustles underscores a pivotal shift in personal finance. Younger generations are championing this change, viewing side gigs not just as income supplements but as pathways to financial autonomy and entrepreneurial endeavors. However, the necessity also drives this trend for many, pointing to economic pressures like inflation and stagnant wages.

Notably, the gender discrepancies in side hustling reveal deeper societal barriers, emphasizing the need for more equitable opportunities. As the lines between main jobs and side gigs blur, a future emerges where diversified income sources are standard. This shift highlights the growing importance of financial adaptability and literacy.

In essence, side hustles are more than a trend; they’re a response to evolving economic realities, signaling a future where personal finance strategies must be multifaceted and resilient.