Study finds middle class net worth fell 35% in 3 years
A report released Tuesday gives some insight into the financial health of middle class Americans.
The study, from the Consumer Federation of America and financial services provider Primerica, found the net worth of the typical middle class family fell 35 percent between 2007 and 2010.
That’s a decline of more than $50,000 dollars.
The study found these households are not as prepared for their financial futures as those with greater incomes, but they seem to be managing the bills in front of them right now.
Our analysis, however, also revealed that few of these middle class families were in deep financial difficulty. In 2010, only 9 percent of those who owed money had any debt payment that was at least 60 days overdue.
And only 13 percent had consumer and mortgage debt payments that all together exceeded 40 percent of their income.
Two-thirds of those surveyed admitted to at least one really bad financial mistake in the past that cost, on average, $23,000 dollars.
Yet only 45 percent said they’ve sought advice from a financial professional on savings and investments.
A majority rated their ability to make financial decisions as “good” or “excellent.”
The report defined middle-income households as those with an income between $30,000 and $100,000 dollars.