Here are the 5 most mind-blowing money stats of the average American. Learn to build riches in 2026

You can’t manage what you can’t measure, and it’s difficult to measure your personal finances against the rest of the country without the right statistics.

You may assume you’re doing great or worse than your neighbors, until you see the actual data. From ballooning car loans to trillions sitting idle in banks, the numbers paint a clearer picture for where you and your family stand.

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With that in mind, here are five mind-blowing money stats that reveal how the average American handles money — and the lessons you can apply now to grow richer in 2026.

1. 28.1% of car trade-ins have negative equity

At least one in four cars you see on the road are worth less than their outstanding auto loan. In the third quarter of 2025, 28.1% of trade-ins towards new cars were “underwater”, according to Edmunds (1).

Negative equity hit a record-high $6,905 during this quarter. "The sheer amount of debt consumers are carrying in their trade-ins should be a wake-up call," said Ivan Drury, Edmunds' director of insights.

In fact, the total auto loan debt ($1.66 trillion) has now surpassed the aggregate amount of student loan debt ($1.65 trillion) that American households are collectively carrying, according to the Q3 2025 credit and debt report by the Federal Bank of New York (2).

If you’re looking to avoid this scary debt burden, consider buying a used car at a lower price, shop around for favorable interest rates and make sure your loan-term is less than the 60 months Edmunds recommends (3).

2. Those earning over $100,000 are more likely to lean on Buy-Now-Pay-Later

As Buy-Now-Pay-Later (BNPL) schemes have proliferated in recent years, it’s easy to assume this trend is driven by low-income households struggling to keep up with inflation. But a survey conducted by Morgan Stanley found data to suggest the opposite (4).

High-income households were actually the main adopters of this new form of borrowing. In 2025, 38% of families earning between $100,000 and $150,000 had some BNPL loans, compared to just 27% for those earning $25,000 to $50,000.

The report also found that the most common use of BNPL was for everyday purchases like groceries, electronics and clothing rather than one-off big ticket items like vacations or concert passes.

Simply put, high-income families are using these schemes to cover the gap between their earnings and their needs. But debt is still debt, even if it has a different name and branding. You could limit your exposure to this growing pile of phantom debt with a tighter budget and by avoiding lifestyle creep when your income rises.

Read More: Are you richer than you think? 5 clear signs you’re punching way above the average American

3. Americans have $4.5 trillion in cash earning little to no interest

As of mid-2025, American households collectively had nearly $4.5 trillion in checking accounts and currency, according to the Federal Reserve (5). Not only is that money earning little to no interest every month, it’s also losing value at a steady clip because of persistent inflation.

It’s remarkably easy to mitigate this by simply moving funds to a high-yield savings account, many of which offer yields greater than 4%. Unfortunately, 82% of savers don’t use this type of account, according to a survey by CNBC Select (6).

Don’t overlook this simple but powerful tool. If you have excess cash waiting for a big purchase or part of your emergency funds, consider moving it to the high-yield savings account to preserve its purchasing power.

4. Median age of first-time homebuyer is 40

The housing affordability crisis is clearly reflected in the surging age of first-time homebuyers. The median age of these buyers is now at a record-high of 40 years, according to the National Association of REALTORS®' 2025 Profile of Home Buyers and Sellers (7).

The median age of all buyers (first-time and repeat) is a whopping 59 years old. In other words, young families have effectively been priced out of the market. And given that the Trump administration is considering rolling out 50-year mortgages, some home loans could outlive their owners (8).

For young families looking to get on the property ladder, there’s no easy solution. However, you could consider moving to a town or suburb with more affordable options, investing in your skills to boost earnings or aggressively save a larger downpayment to qualify for a smaller mortgage.

5. The savings rate is 4.6%

As of August 2025, the personal savings rate is just 4.6%, according to the Federal Reserve [9]. That’s down from 5.2% in August 2024.

Although this isn’t necessarily a low rate of personal savings, if you’re starting from scratch a higher rate is much more important than your investment returns.

For example, James saves 4.6% of his $100,000 income and invests in an index fund that delivers a 10% annualized return. It would take him more than 12 years to reach $100,000 in savings.

Meanwhile, Jenny saves 10% of her $100,000 salary and invests it in a high-interest savings account with a 4% yield. Despite her lower returns, she can reach $100,000 in savings within just nine years.

If you’re just getting started, focus on saving as much as possible.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Edmunds (1, 3); Federal Reserve Bank of New York (2); Morgan Stanley (4); Federal Reserve Bank of St. Louis (5, 9); CNBC (6); National Association of Realtors (7); CNN (8)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.