The average middle class American spends $2,833 per month, not including taxes and savings. By far, the two most commonly perceived defining characteristics are the ability to pay bills on time and having job security. Related: How Much Middle-Class Families Earn in Every State, Don’t Miss: States Where It’s Easiest To Go From Middle Class to Upper Class, Read: The Upper Class Has Taken Over These 50 Cities. For lower-income households, it was $25,624. There is no single definition for the middle class that exists, but it's often considered between 67% and 200% the median income. Spending may or may not be affected by income, as it is generally used as a metric apart from income to include those who may be living off of a fund, government payments or the like. Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Washington. Most 2019 reports have been based on the Pew Research Center report using 2017 data. Additionally, both President Obama and President Trump have used the figure of $200,000 as of the minimum for high-income tax rates, although actual high-income figures have varied over the years. Jan 21, 2019. Although estimates vary, Pew Research Center has claimed that a middle-class income-range is anywhere between $40,500 and $122,000 per year. There's no single definition of "middle class." And, nearly 50% of them feel financially insecure. The average middle class millennials, for example, spend $2,898, but the average middle class Gen X-ers, who are generally further along in their careers and earn a bit more, spend $3,258. (TWTR) - Get Report to voice her concerns over the issue, including challenging high-ranking members of Congress to debate. Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Returns as of 10/19/2020. Cumulative Growth of a $10,000 Investment in Stock Advisor, America’s Middle Class in 2019, as Defined by Americans @themotleyfool #stocks, 4 Unexpected Sources of Retirement Income, The Motley Fool Acquires Millennial Money, 3 Key Differences Between Traditional and Roth IRAs You Need to Know, Copyright, Trademark and Patent Information. This ranges from a low of 34.9 hours for middle class Americans with education jobs to a high of 42.7 hours for those who work in technology. Cynthia Measom contributed to the reporting of this article. The middle class is loosely defined as those who fall into the middle group of workers compared to the bottom 20% or top 20%. The perceived minimum middle-class income for a one-person household ranges from $43,610 to $47,814, depending on the age group. Using Pew’s definition of middle class, GOBankingRates analyzed data from the U.S. Census Bureau’s 2018 American Community Survey to determine how much two-, three- and four-person families need to earn in every state to qualify for this classification. So it's fair to say that the 40-hour workweek remains the standard, at least for the middle class. Follow him on Twitter to keep up with his latest work! All Right Reserved. What's more, income inequality is increasing - with a shrinking middle class and recently-elected politicians touting a higher tax rate for the wealthy (as high as 70% on income above $10 million, which would currently affect less than 1% of households). For example, Jackson, Tenn. has one of the lowest middle-class ranges, with a before-tax salary of $37,106 for a three-person household being considered middle class as of 2018. Read: 35 Cities Where You Can Afford To Live on Less Than $50,000, Check Out: The Living Wage You Need in All 50 States, Stuck Inside? The Most and Least Expensive States To Work From Home, Related: How Much You Need to Be in the Top 5% in Every State, Look: How Far a $100,000 Salary Goes in America’s 50 Largest Cities. But although recent discussion suggests the middle class is shrinking, according to 2016 figures from Pew Research Center, the percentage of adults living in middle-income households hasn't changed too dramatically in recent years. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Additionally, other reports using Pew data conclude that a middle-class four-person household would be in the range of $46,960 to $140,900 in income. In terms of income, Pew Research Center has designated that a middle-class income is between 67% and 200% of the median income (based on numbers from 2016.) The middle class constitutes a slim majority of the U.S. population (52%), but that is still less than it has been in nearly half a century. Additionally, according to Pew Research Center data, average hourly earnings as of November 2018 were around $23 - which, when adjusted for inflation, is actually less than it was in January of 1973 (which would come in at around $23.68 for 2018). Gen X-ers think that you need the most to be considered middle class, while baby boomers' average response was the lowest, although still significantly higher than the actual definition. See you at the top! However, because the cost of living and average income varies so widely from state to state, the income needed to be “middle class” in one state could be much more or less than what it takes to be middle class in another. For lower income … "In that sense, the middle class has been hollowed out.". Based on Pew Research Center data for the 2017 fiscal year within the Center's parameters, an income range of $41,000 and $132,000 is considered to be middle class. However, as nearly every politician has discussed in recent years, the middle class does appear to be shrinking - especially with slower growth in middle to upper-middle classes as the top-earning classes appear to grow. One of the defining characteristics of this demographic is a general sense of contentment with their finances. The Bureau's ranges don't coincide exactly with the Pew definitions, but the numbers are similar.The federal poverty level as of 2019 is $12,940 for one person, $16,910 for two people, $21,330 for three people, and $25,750 for a household of four. Let's conquer your financial goals together...faster. Billionaires vs. the Middle Class Across America: Who Pays More in Taxes? Action Alerts PLUS is a registered trademark of TheStreet, Inc. This depends on whom you ask. In fact, a staunch defender of the so-called middle class and recently elected Congresswoman Alexandria Ocasio-Cortez recently advocated for a 70% marginal tax rate on the wealthiest income brackets (those earning at least $10 million in income) in a seeming attempt to alleviate the burden on the middle and lower classes. On the slightly more unusual side, President Obama designated a task force to examine another area when defining the middle class in 2010 - that of their aspirations. Still, while there has been much debate over the particular parameters of the middle class, it is clear through various reports that, while the percentage of adults in middle-income houses may not have decreased too dramatically, their purchasing power and cost of living expenses have seemingly hurt them.

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