Despite steadily increasing housing and child care costs, a new report from the Federal Reserve Board paints a mostly positive picture of Americans’ financial stability.
The annual Economic Well-Being of U.S. Households report, released Wednesday, surveyed 12,295 adults nationally in 2024 on topics related to economic well-being, including family income, overall expenses and student loans.
The survey found that 73% of adults report either “doing okay” or “living comfortably.” This is marginally higher than 2023 and 11% higher than 2013, but down from a high of 78% in 2021.
Parents of children under 18 experienced greater negative changes than other demographics since 2021. Parents’ financial wellbeing remained essentially unchanged since 2023, but the number of those reporting they are financially stable has dropped by 10% since 2021.
Americans overall continue to view the economy in a generally negative light but slightly better than in 2023, with 29% rating the national economy “good” or “excellent” in 2024, versus only 22% the year prior.
Incomes vary substantially, with nearly 20% of adults reported a family income below $25,000 while nearly 40% reported an income of $100,000 or more annually. For adults who worked in 2024, 58% received a raise or a promotion, although roughly the same number said rising prices that year had made their overall financial situation worse.
Rising child care and housing costs remain some of the largest household expenses. While only 24% of parents with children under the age of 13 used paid child care in 2024, more than half of those parents paid at least 50% of what they paid for housing.
In 2024, the median monthly cost of child care was $960. In comparison, the median monthly mortgage payment was $1,500 and the median rent was $1,200, the latter having risen approximately 20% since 2022.
While 63% of American adults owned their home, about two-thirds held a mortgage and adults over 60 were three times more likely than adults 29 and younger to own a home.
Less than 20% of all American adults still hold debt from student loans, with the median outstanding debt in 2024 hovering between $20,000 and $25,000.
“The financial well-being of American households and businesses is essential to our nation’s overall economic vitality,” FRB Governor Michael S. Barr said in a press release Wednesday. “It is critical for the Federal Reserve to understand the challenges households and businesses face as we work to promote a healthy economy and strong financial system.”
