Americans and Money, Income and Debt

Here's some interesting data I found on a research site that gives details on Americans' income and debts. First, the income information (from 2004):

• 31% of American adults earn $30K or less annually, before taxes.
• 34% of American adults earn between $30K and $60K annually, before taxes.
• 15% of American adults earn $60K to $100K annually, before taxes.
• 6% of Americans earn over $100K annually, before taxes.

So, if you make over $100,000 per year, you're in the top 6% in incomes in the U.S. I thought this level would have put you in the top 10%, but it's close enough -- you're doing well either way. Of course, we all know that there's not necessarily a correlation between income and net worth -- even the rich need to spend less than they earn, and many don't.

Now here are some facts on debt. They are a bit dated (from 2000 and 2001), but, if anything, are probably "worse" today. I'm listing their findings in green along with my comments: 

• 37% of Americans report they are "in debt". Either this is worse now or people are not telling the truth. With people borrowing and spending without regard to their income, the popularity of interest-only mortgages, people saving less and overall bad money and debt habits, is it any wonder things are so tough?
• 43% of parents report they are in debt, compared to 34% of non-parents. Maybe this is because kids cost $250,000 not counting college costs. Of course there are ways to save on raising kids, but there's an even bigger temptation to splurge on them. :-)
• Those with higher household incomes are less likely to say they are "in debt" (44% of those households that earn less than $30,000 agree that "in debt" describes them, compared to 37% of other Americans). Makes sense to me.
• 32% of adults report that they personally struggle with finances. Almost a third of all adults "struggle" with money. Interesting.
• Single adults (36%) are more likely than are married adults (28%) to report that they personally struggle with finances. No surprise here -- married people have better net worths on average. Yes, marrying for money actually works. ;-)

FMF recommends Emigrant Direct.

Comments

[Nick]

Shouldn't those income percentages add up to 100%? When I add them up I only get 86%. So what are the other 14% earning? Even if they aren't earning anything that should still put them in the 30k or less group.