Most people like to think of themselves as normal. While some might relish the idea of going against the grain, striking out on their own, or wandering off the beaten path, many prefer to stick with the tried and true. Of course, when it comes to finances, it can be difficult to know what "normal" is. Is it someone with a lot of debt and minimal savings? Or is it a person with almost no debt and a bit of savings? To find out what's normal, it helps to look at what others around you are saying and at what statistics say.

Who is the Average American?

According to Motley Fool, the average American is a 50-year-old woman. She shares a home with 1.5 people, has a net worth around $122,000 and owes about $58,000, not including her mortgage. According to the Bureau of Labor Statistics, the average American earned around $48,000 in 2023.

If you're a 50-year-old woman who earns around $48,000 and lives with a partner, you might be nodding your head right now, thinking, "yes, I am normal!" But, if you're not a woman, if you're under age 50 or older than 50, or you're one of the 67% of people who earns less than $48,000, you might be shaking your head, thinking, "guess I'm not normal."  For that reason, it helps to look beyond numbers and averages.

"Normal" People Are a Bit Insecure But Optimistic

Surveys aren't perfect, but they can give you a sense of what many people, people who are similar to you in some ways, but not others, are thinking. A survey published by Pew Research in 2015 asked people how they feel about their financial security and stability. Examining their responses can give you an idea of whether you're thinking the way others do or not when it comes to money.

The organization surveyed 7,845 people. One of the things it found was that more people, 56% of participants, rated their financial situation positively while 27% gave the overall economy a positive ranking. Those numbers were higher in 2015 than in 2009, when 42% ranked their financial situation positively and just 9% gave the economy a good ranking.

Although people generally feel positive about their finances, the survey found that it is also fairly normal for them to feel somewhat insecure or to have experienced financial difficulty. 60% of the people surveyed said they had had some type of "financial shock," such as job loss, partner or spouse loss, or a large, unexpected expense, like a car repair. More than half of the people who had a shock said that the problem made it difficult for them to make ends meet.

It's also fairly normal for people to worry about savings, or rather, a lack of savings. More than a third of survey participants said they had no savings, and more than 20% said they had no plans to retire, ever. The vast majority of people, 92%, also stated that they'd rather be financially secure than move up and increase their income.

In some ways, being normal can be a good thing, as it can mean that you're hopeful for your financial future. But, in other ways, being normal can be hurtful, as it might mean that you don't have much in savings or feel unsteady financially. When it comes to your finances, the best thing to do is figure out what works for you regarding earning, spending, and saving, and not think too much about what everyone else is doing.

 

Source: MoneyEdu