Every year for the last six the Federal Reserve Board has released a report on the economic well-being of the nation’s households. The 2018 report — titled the Survey of Household Economics and Decisionmaking (SHED) — says things are slightly better than the excellent results of 2017.

The report surveyed 11,000 adults across all economic situations and included all races and minorities. Most said they have experienced “substantial” gains since the survey started in 2013. It is — the board says — in line with the ongoing economic expansion being experienced nationwide.

These are the items considered in the survey:

•  Income

•  Employment

•  Handling of expenses

•  Banking

•  Credit

•  Housing

•  Education

•  Retirement

Here is a summary:

•  75% said they are doing okay or living comfortably

•  That’s up 12% from the first survey in 2013

•  Asked how to pay a $400 unexpected expense

•  61% said they could pay with cash or savings or a credit card

•  If a credit card is used, the balance could be paid off the next statement

•  12% would not be able to cover the $400 expense

•  In 2013 only half could have paid with cash or by credit card

As for race, education level and — in some cases — geography, some in those categories are still experiencing some financial stress.

•  80% of caucasians say they are at least doing okay financially

•  66% of African Americans and hispanics said the same thing

•  87% of those with Batchelor degrees or higher said they are at least doing okay

•  Just 64% of those with a high school degree or less said they are at least doing okay

•  80% of those living in middle-or-upper income neighborhoods are satisfied overall with their community

•  60% of those living in low-to-moderate income neighborhoods are satisfied overall with their community

Federal Reserve Board Governor Michelle Bowman said the report shows a growing American economy is supporting most American families. “At the same time, the survey does find differences across communities, with just over half of those living in rural areas describing their local economy as good or excellent compared to two-thirds of those living in cities,” she said. “Across the country, many families continue to experience financial distress and struggle to save for retirement and unexpected expenses.”

Here’s more:

•  Family income changes from month-to-month continues to be a financial strain for some individuals

•  30% have family income that varies from month-to-month

•  10% struggled at least once during the year to make ends meet because of income changes

•  Financial support was needed from family or friends for that group

•  That is most common among young adults

•  Most adults are working as much as they want — that is an indication of full employment

•  Some — however — remain unemployed or underemployed

•  10% of adults are not working and want to work

•  However, many are not actively looking for work

•  4% of adults are not working and want to work and had applied for jobs in the last 12 months

•  That’s close to the 3.8% national unemployment rate

•  20% are working but want to work more

•  African Americans, hispanics and those with less education are less satisfied with how much they are working

•  66% of graduates with Batchelor’s degrees think their education investment paid off financially

•  Just 30% who started toward a degree and did not finish agree with that assessment

•  Over half of young adults that attended college took on debt to pay for that education

•  Over a fifth that went to private-for-profit schools are behind on loan payments

•  That compares to 8% of those that went to public institutions and 5% that attended private-not-for-profit schools

•  On retirement, most adults are struggling to save for retirement

•  36% of non-retired respondents think they’re on track

•  25% have no retirement savings or pensions

•  Even those with some savings have no clue how to make investment decisions

Click here for a link to a video summarizing the findings.

Click here for a news release on the report.

Source link PDF of the report: The Federal Reserve