Trends in Savings, Debt, and Net Worth

Reid Cramer

Director, Asset Building Program

FDIC Advisory Committee on Economic 

Inclusion (ComE-IN) 

December 13, 2012
0

2

4

6

8

10

12

14

1/1/1980

10/1/1980

7/1/1981

4/1/1982

1/1/1983

10/1/1983

7/1/1984

4/1/1985

1/1/1986

10/1/1986

7/1/1987

4/1/1988

1/1/1989

10/1/1989

7/1/1990

4/1/1991

1/1/1992

10/1/1992

7/1/1993

4/1/1994

1/1/1995

10/1/1995

7/1/1996

4/1/1997

1/1/1998

10/1/1998

7/1/1999

4/1/2000

1/1/2001

10/1/2001

7/1/2002

4/1/2003

1/1/2004

10/1/2004

7/1/2005

4/1/2006

1/1/2007

10/1/2007

7/1/2008

4/1/2009

1/1/2010

10/1/2010

7/1/2011

4/1/2012

Personal Saving as a Percentage of Disposable Income

Personal Savings Rate, 1980-2012 

Source: U.S. Department of Commerce: Bureau of Economic Analysis
0

1

2

3

4

5

6

7

8

9

1/1/2000

5/1/2000

9/1/2000

1/1/2001

5/1/2001

9/1/2001

1/1/2002

5/1/2002

9/1/2002

1/1/2003

5/1/2003

9/1/2003

1/1/2004

5/1/2004

9/1/2004

1/1/2005

5/1/2005

9/1/2005

1/1/2006

5/1/2006

9/1/2006

1/1/2007

5/1/2007

9/1/2007

1/1/2008

5/1/2008

9/1/2008

1/1/2009

5/1/2009

9/1/2009

1/1/2010

5/1/2010

9/1/2010

1/1/2011

5/1/2011

9/1/2011

1/1/2012

5/1/2012

9/1/2012

Personal Saving as a Percentage of Disposable Income

Personal Savings Rate, 2000-2012

Source: U.S. Department of Commerce: Bureau of Economic Analysis
Source: Clemons, Steve and Richard Vague, 2012 
Median Value for Unsecured Debt by Race 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

White households Hispanic households Black households Asian households

Value of unsecured debt in dollars 

2005

2009

Source: Pew analysis of SIPP 2004 and 2009 panels 
Median Household Net Worth, 2007 and 2010 

$126,400

$42,300

$77,300

$29,800

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Including primary residences and mortgage debt Excluding primary residences and mortgage debt

Median Net Worth in $

2007 2010

Source: Bricker, et. al. Changes in U.S. Family Finances from 2007 to 2010: 

Evidence from the Survey of Consumer Finances, June 2012 
0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1998 2001 2007 2010

Black

Hispanic

White

Median Wealth by Race,1998-2010 

Source: State of Working America, Economic Policy Institute, 2012/Wolff 2012 
Personal Savings Promotes Upward Mobility 

from the Bottom

50%

29%

24%

33%

16%

22%

10% 16%

Parents Had Low Savings Parents Had High Savings
Source: Bricker, et. al. Changes in U.S. Family Finances from 2007 to 2010: 

Evidence from the Survey of Consumer Finances, June 2012, Table 4. 
The Typical Household

2010 Balance Sheet 

Assets Debts

Liquid $3,142 Credit $440

Physical $121,427 Housing $16,306

Financial $42 Other Physical $891

Retirement $2,807 Education $0

Misc. $25,655 Misc. $0

Total $241,067 $43,576

Net Worth $164,647

Source: SCF, Analysis by C. Key (2013)
2010 Liquid Assets 

(Savings and Checking)

By Income

Below Poverty $520

Poverty to median income $1,995

Median to 80th percentile $5,325

By Race

Caucasian $5,797

African-American $1,041

Latino $989

Source: SCF, Analysis by C. Key (2013)
Household Trends 2007-2010

 2007 2009 2010

Typical 

Household

Liquid Assets $2,979 $2,831 $3,142 (6%)

Net Worth $172,555 $159,332 $164,647 (-5%)

Poverty to 

Median 

Liquid Assets $2,059 $2,339 $1,995 (- 3%)

Net Worth $114,186 $113,759 $104,827 (-8%)

Source: SCF, Analysis by C. Key (2013)
Desired Precautionary Saving 

(by Income Quintile)

Family Income Desired Savings Share of Income

$0 - $20,599 $2,000 14%

$20,600 - $36, 499 $3,000 9.7%

$36,500 - $59,599 $5,000 9.4%

$59,600 - $98, 199 $5,000 7.6%

$98,200 - $140,899 $10,000 8.1%

Source: Bucks et al (2009). 
Desired Account Changes to Induce the 

Unbanked to Open a Bank Account

Lower Fees 29%

Convenience 20%

Less Confusing Fees 16%

Lower Minimum Balance 14%

Volunteered, None or Nothing 11%

Get Money if Faster 10%

(Barr, 2009). The question asked of 270 unbanked residents of Detroit. 
Barriers to Saving Remain but 

Opportunities Abound

• Recession has impacted savings behavior.

• Access to affordable financial products and services remains an 

obstacle for many. 

• Yet families have capacity and interest to increase their 

precautionary savings. 

• Managing finances requires connections to accounts (savings and 

transaction).

• Promise in policies to promote access and features that meet 

consumer demand. 
Contact Information

Reid Cramer

Director, Asset Building Program

New America Foundation

cramer@newamerica.net

202-596-3353

www.newamerica.net