Every three years, the Board of Governors of the Federal Reserve System releases results of the Survey of Consumer Finances. The Survey looks at family income, net worth, debt, and other indicators of the financial health of US families. The most recent report covers the interesting time period from 2019 (just before the COVID-19 pandemic) to 2022. Let’s explore a few interesting findings.
Although the pandemic has been devastating in many ways and the shutdowns and other disruptions to business activity caused massive dislocations, the Survey indicates that US families were actually better off financially due to the historic infusion of funds.
Income was up whether measured by the mean (average) or median (where half are above and half are below). The 2022 household income number reflects earnings in 2021, and many families were benefiting from pandemic- related federal relief packages. While the resulting enhanced unemployment and other benefits would be reflected, information on many stimulus payments was not included. Income increases were measured for most age groups and races/ethnicities. The highest median income group was Asian, with a median income of $122,600, followed by White non-Hispanic ($81,100), Hispanic/Latino ($46,700), and Black ($46,000) families. Not surprisingly, income remained highly correlated with education.
