An Average American Earns More Than You Think. Here's All You Need to Know!

The Federal Reserve data, which was released on Wednesday, says that American families have been fortunate to see a jump in their wealth between the years 2019 and 2022. What is interesting is the fact that these years have been the years of the pandemic, when the whole world saw economic crisis along with huge damage to life. The contributing factors to this wealth is repetitive rounds of government stimulus.

In the span of those three years, the median net worth jumped to 37 percent post the inflation, as stated by the Survey of Consumer Finances by Fed. This is seen to be the biggest leap in records starting to 1989. Between the years 2018 and 2021, the median net worth has jumped to over 3 percent, post deducting the price rises.

It is to be noted that the income gains have been expressed for the affluent class. Yet, the data also demonstrates that Americans have been successful in making financial progress for all in the three years. In that time frame, savings have increased, and credit card balances have dropped.

Data received from both private and government sector sources indicate such gains. The Fed report, however, talked about the global standard in data regarding the financial conditions of the households. The Fed report is released once in every three years, and it has provided the most detailed and comprehensive view of everything starting from savings to stock ownership across age, wealth, and racial groups.

Ever since the pandemic shook the world, this one has been the first Fed report since then. The report shows how families progressed at the time where the whole world faced a tough economic period. During the pandemic, masses lost their jobs, but the government brought forward various relief packages.

Recently, a boom in the job market has been seen. Fast wage growth and low levels of unemployment has made the situation better. However, rapid inflation has eroded some of this gain.