Money is something almost everyone thinks about, but few people really know how they compare to the average American.
Some of the numbers are surprising, like how much people owe on their cars, how little is saved for emergencies, or what it actually takes to be considered wealthy in today’s economy.
Personal finance creator Humphrey Yang highlights the financial challenges many Americans are facing, from being underwater on car loans to underutilizing retirement accounts.
1. Negative equity on cars is becoming more common
According to Yang, 26.6% of people trading in their car for a new one in 2025 still owe more on their loan than the vehicle is worth.
On average, they’re upside down by $6,754. This growing problem is fueled by long car loans and high vehicle prices during the pandemic.
Yang recommends going with a used car instead of something brand new, since that’s where the biggest savings usually are. He also says to ignore what others might think about what you drive and focus on what fits your budget.
One helpful rule he shares is the 20/4/10 guideline: put down 20%, pay the car off in four years, and don’t let your monthly car costs take up more than 10% of your gross income.
2. Buy now, pay later debt is quietly stacking up
The average user of buy now, pay later (BNPL) services owes $760, and more than 24% of users have made at least one late payment this year.
While these services may appear interest-free, Yang warns they often encourage overspending.
Even higher-income households are increasingly relying on them.
3. Most people aren’t maximizing their savings
Despite $18 trillion sitting in American bank accounts, Yang notes that 82% of people are not using high-yield savings accounts.
That means they’re missing out on interest that could easily grow their savings without extra effort.
Even just $5,000 in a traditional account earns only about $20 a year at 0.4% interest, while a 3.5% APY account would earn $175.
4. Emergency savings are still lacking
Roughly 60% of Americans can’t cover a $1,000 emergency expense, and one in four would turn to a credit card to pay for it.
The situation is especially bleak among Gen Z, where 34% have no emergency fund at all.
Yang recommends keeping emergency savings in a separate high-yield account and only touching it for true emergencies.
5. Median bank account balances paint a limited picture
The median American has about $8,000 in the bank, but that varies heavily by income.
Someone earning $153,000 or more typically holds a median of $33,800.
Yang says this is a reminder to focus more on building income than benchmarking yourself against national medians.
6. IRAs are often left uninvested
A surprising 28% of people who roll over funds into an IRA leave that money sitting in cash.
Many assume the funds are automatically invested, but they’re not.
Yang urges people to double-check that their retirement money is working for them.
7. The market rewards the patient
While the stock market can be volatile year-to-year, it has historically doubled every 10 years.
Yang emphasizes that staying invested, especially through downturns, matters more than trying to time the market.
Missing just 10 of the best days over the past 30 years could reduce your returns by over 50%.
8. Homeownership is getting delayed
The median age of a first-time homebuyer has climbed to 38, up from 28 in 1991.
Yang links this to sky-high home prices, stagnant wages, and lifestyle changes.
He advises only buying if you plan to stay put for at least 5–10 years and stresses the importance of budgeting for hidden costs like maintenance and insurance.
9. The top 10% of wealth starts at $1.06 million
To join the top 10% of Americans by net worth in 2025, you’ll need around $1.06 million.
Yang points out that high income doesn’t guarantee high net worth, smart money habits do.
Tracking net worth regularly and investing consistently can help close the gap.
10. Savings rate often beats investment return, at least early on
Yang offers a comparison between two people earning $100,000: one saves 10% at a 1% return, while the other saves 5% but earns 10% returns.
Despite the better return, the second person takes two years longer to reach $100,000.
The key message: early in your journey, how much you save matters more than how well you invest.
A clear picture of American finances
These stats show something pretty real: most people aren’t falling behind because they don’t earn enough, they just haven’t been taught what to do with their money.
It’s not about being perfect, it’s about making a few smart moves and sticking with them.
Things like letting cash sit in a regular savings account earning pennies, forgetting to actually invest retirement money, or racking up small BNPL payments might not seem like a big deal, but over time they can really hold you back.
As Humphrey Yang puts it, you don’t need to overhaul your whole life. Just start somewhere, open a high-yield savings account, check what your IRA is doing, or bump your savings rate by a few percent.
It’s the small stuff, done consistently, that actually adds up.