White families are both more likely to have received an inheritance and are also more likely to expect to receive an inheritance: about 17 percent of White families expect an inheritance, compared to 6 percent of Black families, 4 percent of Hispanic families, and 15 percent of other families. After 2013, median wealth rose for all groups, with faster growth for Black, Hispanic, and other families. 1 The 2019 SCF reveals improvements in economic well-being among large parts of the income and wealth distributions since the previous time the survey was. COVID-19, the CARES Act, and Families' Financial Security, How COVID-19 is Affecting Black and Latino Families' Employment and Financial Well-Being.
See description of files and technical documentation for more information. EDIT LINE 1 (a) Share of Total Net Worth Held by the Top 1% (99th to 100th Wealth Percentiles), Percent of Aggregate, Not Seasonally Adjusted (WFRBST01134) Units: Modify frequency: Customize data: Write a custom formula to transform one or more series or combine two or more series. Federal Reserve Board - 2007-09 Panel Survey of Consumer Finances Wealth and Income Concentration in the SCF: 1989-2019 NORC interviewers will attempt to contact everyone selected for the survey to allow potential respondents to ask detailed questions and request supporting material before deciding to participate. Can 'Baby Bonds' Eliminate the Racial Wealth Gap in Putative Post-Racial America? Federal Reserve Board - About Although most families do have some wealth, the number with zero or negative net worth (having debts that exceed assets) is nontrivial and varies by race/ethnicity. For more information on how the asset, debt, and net worth variables are related . Dettling, Lisa J., Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, and Jeffrey P. Thompson (2017). Infrastructures, Payments System Policy Advisory Committee, Finance and Economics Discussion Series (FEDS), International Finance Discussion Papers (IFDP), Estimated Dynamic Optimization (EDO) Model, Aggregate Reserves of Depository Institutions and the
"The Transition to Home Ownership and the Black-White Wealth Gap." Codebook for the 2019 Survey of Consumer Finances
Received inheritances are adjusted to 2019 dollars using the consumer price index for all urban consumers (CPI-U) to account for inheritances received prior to 1977. For a recent discussion of the Black-White wealth gap, see Kriston McIntosh, Emily Moss, Ryan Nunn, and Jay Shambaugh. Average Net Worth of Homeowners, Renters in America Showcards
Most white households (71 percent) report being able to get $3,000 from family or friends in a financial emergency, compared with less than half of Hispanic and black households (49 percent and 43 percent, respectively). Federal Reserve Board - Survey of Consumer Finances (SCF) Foreign Banks, Charge-Off and Delinquency Rates on Loans and Leases at
Among less educated families, proportional growth rates at the mean and median were highest for Hispanic families and other families. Return to text, 12. The SCF data provide a snapshot of families' wealth at a point in time. At key points during the administration of the interview, interviewers show the respondents a series of cards containing information relevant to framing or answering a question. Chang in mediaen and mean net worth, 1995-200 SC4 F Period 1995-1998 Median:about 17%;Mean:about 26% . 2020. These within-age ratios are somewhat lower than the Black-White ratio of nearly eight for all families combined (implied by Figure 1). Given that home prices have. Return to text, 6. Between 2013 and 2016, median net worth rose for all groups (figure 2). FEDS Notes. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Notes: Figures displays median (top panel) and mean (bottom panel) wealth by race and ethnicity, expressed in thousands of 2019 dollars. PDF Survey of Consumer Finances The survey includes modules on a range of topics of current relevance to financial well-being including credit access . For example, the median college-educated black family's net worth is about six times that of the median black family with less education, and the ratio is about 4.5 for Hispanic families. This FEDS Note has described broad patterns in wealth-holding across families grouped by race and ethnicity, and some of the economic and demographic determinants of those patterns, using newly released data from the SCF. This Black-White gap of nearly 30 percentage points narrows somewhat among middle-aged and older families. Educational attainment is a significant predictor of income and wealth: 2016 SCF data indicate that overall, families with a bachelor's degree have mean and median wealth values that are more than five times the values for less educated families. Parent(s) with a college degree refers to the parents of the reference person. Commercial Banks, Senior Loan Officer Opinion Survey on Bank Lending
Median wealth fell about 30 percent for all groups during the Great Recession. The analysis and conclusions set forth are those of the authors and do not reflect the views of the Board of Governors or the Federal Reserve staff. All dollar estimates are given in 2019 dollars. For example, nearly 30 percent of White families report having received an inheritance or gift, compared to about 10 percent of Black families, 7 percent of Hispanic families, and 18 percent of other families. The Distributional Financial Accounts (DFAs) integrate two data products produced by the Federal Reserve Board: the Financial Accounts of the United States, which provide quarterly data on aggregate balance sheets of major sectors of the U.S. economy, and the Survey of Consumer Finances (SCF), which provides comprehensive triennial microdata on . Wealth is also correlated with family structure because of higher levels of saving among families with more earners or lower living expenses. Press release: Board Begins 2022 Survey of Consumer Finances, Federal Reserve Bulletin: Results from the 2019 SCF (PDF). Notes: Figures displays the percent of families with access to employer-sponsored retirement plans (DC or DB plans, blue bars) and the percent of families that participate in an employer-sponsored retirement plan (orange bars) among families under 55 years old, by race or ethnicity. Survey: Job Market Slowdown And Unemployment Surge On Horizon - Bankrate While all groups experienced losses during the Great Recession, the 2016 SCF data reveal broad-based growth in household net worth across groups since 2013. Infrastructures, International Standards for Financial Market
In contrast, the median young White family has a wealth of $25,400. Families who lack access to employer-sponsored plans miss out on a common added benefit: many employers contribute to these plans, either by matching some or all of the employee's contributions to the plan in the case of DC plans or by providing employees a guaranteed income stream in retirement for DB plans. White households are the least likely to be headed by a single parent (8 percent), compared with 16 percent among Hispanics and 27 percent among black families. Household financial profile
1986 Survey of Consumer Finances. All dollar variables are inflation-adjusted to 2019 dollars. Industrial Production and Capacity Utilization - G.17; . Black and other families are the most likely to have high debt payment burdens: 9 percent of these families have debt-payment-to-income ratios above 40 percent. Assets held in IRA and DC account plans are subject to preferential tax treatment, and DB plans guarantee a stream of income in retirement. Therefore, appropriately interpreting changes in a group's wealth, especially over longer time periods, requires acknowledging compositional shifts within each group. Communications, Banking Applications & Legal Developments, Financial Stability Coordination & Actions, Financial Market Utilities & Infrastructures, Neil Bhutta, Andrew C. Chang, Lisa J. Dettling, and Joanne W. Hsu with assistance from Julia Hewitt1. Wealth-holding can differ across groups due to the intergenerational transmission of wealth. Results from regression analyses show that accounting for the demographic factors in table 2 shrinks the gap to about one-third of the overall gap for white families and black families, and about one-fifth of the overall gap for white families and Hispanic families.5 Still, the adjusted gaps in net worth remain sizable. Credit card debt is also fairly evenly distributed across groups, with between 42 and 50 percent of families having credit card debt. Well over half of white households are homeowners (73 percent), compared with just under half of black and Hispanic households (around 45 percent) and 54 percent of other households. "Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances (PDF)," Federal Reserve Bulletin 106(5) (henceforth, the Bulletin article). Notes: Figures displays median(top panel) and mean (bottom panel) wealth by race and ethnicity, expressed in thousands of 2019 dollars. A family-owned business is another important component of some families' balance sheets. See the codebook (txt) for more details. The relationship between housing and family wealth is complex. Division of Research and Statistics, Board of Governors of the Federal Reserve System. As a result of multiple imputation, the dataset you are downloading contains five times the number of actual observations. Return to text, 16. These articles are shorter and less technically oriented than FEDS Working Papers and IFDP papers. Ownership of IRA and DC retirement accounts rises among middle-aged families and then falls among older families (Figure 4). The detailed household balance sheet information collected in the SCF allows us to move beyond total wealth to explore differences in income and the types of assets and debt held by families within each race/ethnicity group. Board of Governors of the Federal Reserve System The share of white households without any wealth is considerably smaller, at 9 percent. SCF Interactive Chart
Mean net housing wealth (the value of the home, less any debts on the home) among homeowners is $215,800 among white families but only $94,400 among black families and $129,800 among Hispanic families. Estimates for all survey years from 1989 to the most recent survey year are included in both nominal and real terms. Indeed, Bhutta, Blair, Dettling, and Moore (2020) find that without the substantial cash assistance included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, there would be large disparities by race and ethnicity in the share of families who could cover their normal, recurring expenses if they were to lose their job for six months or more.15 They find that just 10 percent of Hispanic families and 14 percent of Black families have enough savings to cover six months of expenses, compared to 36 percent of White families and 27 percent of other families. H.8, Assets and Liabilities of U.S. Services, Sponsorship for Priority Telecommunication Services, Supervision & Oversight of Financial Market
The typical Black and Hispanic families' home values are lower, at $150,000 and $200,000, respectively. With respect to the Black-White gap at middle and older ages, the median wealth of White families is four to six times greater than the median wealth of Black families. PDF Household Wealth Trends in The United States, 1962 to 2019 - Nber Review of Monetary Policy Strategy, Tools, and
Gaps in home values are caused both by gaps in purchase prices and housing appreciation, which are a reflection of a combination of factors including resource gaps (e.g., income and down payments), residential segregation, and age of entry into homeownership.12. For homeowners, the typical White families' home value is $230,000 and the typical other families' home value is $310,000. The variables included are ones that appear in a selected set of the tables in the Bulletin article. In contrast, only 23 percent of black heads of households and 17 percent of Hispanic heads of households have a college degree or higher level of education. In contrast to the White-Black gap, the White-Hispanic homeownership gap expands somewhat among middle-aged and older families. Most of this information is displayed as part of the question text or response categories, but some is more general. PDF Q1 2023 Combined Quarterly Financial Report The calculations reported in these tables are weighted estimates made from the internal data, incorporating any weighting adjustments implemented in the analysis of those data for purposes of the summary articles in the Federal Reserve Bulletin. Statistics and Probability questions and answers. Also provided are a brief summary of the technical features of the survey design; a copy of the source code for the CAPI program, a concordance of variable names in the final data set and those used in the CAPI program; two programs that calculate standard errors for regression models and another program to calculate standard errors for simple statistics such as weighted medians, all three of which account for sampling error and multiple imputation; and a list of the variables included in the public data set. Washington: Board of Governors of the Federal Reserve System, September 28, 2020, https://doi.org/10.17016/2380-7172.2797. Families may not be eligible for an employer plan because their employer does not offer plans at all or they are offered but the employee is not eligible (for example, because the employee works part time or the employee has insufficient tenure at the company). In addition to the differences in the levels and types of wealth previously described, the data also indicate substantial variation by race/ethnicity in many of the factors that are associated with the accumulation of wealth.4 Among the potential reasons that wealth is relatively high among white households, for example, is that they tend to be older, more highly educated, more likely to have received an inheritance, and less likely to be a single parent than their black and Hispanic counterparts (table 2). The program that creates the variables can be found in the documentation column of the table. The White-Black gap in median wealth was little changed, from $163,700 in 2016 to $164,100 in 2019, and the White-Hispanic gap fell modestly from $160,000 in 2016 to $152,100 in 2019. The SCF Interactive Chart contains time series charts using triennial SCF data covering the period 1989 to 2019. In the 2019 survey, White families have the highest level of both median and mean family wealth: $188,200 and $983,400, respectively (Figure 1). 1989 Survey of Consumer Finances. Despite growth over the last two surveys, the typical White family and the typical Black family have yet to recover to their pre-Great Recession levels of wealth. In addition, households are better able to maintain their wealth when they can count on help from family and friends to weather unexpected financial emergencies. system. Washington: Board of Governors of the Federal Reserve System, June 1, 2018. All of the versions of the full and summary extract public data sets are provided in compressed form as WINZIP files. . Evidence from the 2001 and 2004 Survey of Consumer Finances Brian K. Bucks, Arthur B. Kennickell, and Kevin B. . It provides detailed information on the finances of U.S. families 2, including income, net worth, balance sheet components, credit use, and other financial outcomes. Wealth tends to increase with income because of higher levels of saving among higher-income families, and because of the feedback effect on higher incomes from the returns generated by accumulated assets.3 In 2016, both median and mean incomes are higher for white families than for all other groups of families ($61,200 and $123,400, respectively) (table 1). Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue N.W., Washington, DC 20551, Transcripts and other historical materials, Quarterly Report on Federal Reserve Balance Sheet Developments, Community & Regional Financial Institutions, Federal Reserve Supervision and Regulation Report, Federal Financial Institutions Examination Council (FFIEC), Securities Underwriting & Dealing Subsidiaries, Regulation CC (Availability of Funds and Collection of Checks), Regulation II (Debit Card Interchange Fees and Routing), Regulation HH (Financial Market Utilities), Federal Reserve's Key Policies for the Provision of Financial Services, Sponsorship for Priority Telecommunication Services, Supervision & Oversight of Financial Market Infrastructures, International Standards for Financial Market Infrastructures, Payments System Policy Advisory Committee, Finance and Economics Discussion Series (FEDS), International Finance Discussion Papers (IFDP), Estimated Dynamic Optimization (EDO) Model, Aggregate Reserves of Depository Institutions and the Monetary Base - H.3, Assets and Liabilities of Commercial Banks in the U.S. - H.8, Assets and Liabilities of U.S. Tables based on public data
Notes: Table displays median wealth by age group and by race and ethnicity in thousands of 2019 dollars. To see why, let's calculate the average allowanceadd up the allowances and divide by the number of students: average = ($1 + $3 + $20)/3 students = $8 per student.