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- Your financial situation is ever-evolving.
- But there are certain ages in life when you’re most likely to reach a peak related to spending, saving, and earning money.
- For example, the average American woman earns the most money of her career around age 40.
Your financial situation is ever-evolving — just like your happiness.
But like your state of mind, your finances are bound to peak at certain times in your life.
To find out what that timeline looks like for the average person, we’ve gathered some research on how Americans spend, save, and earn money.
The graph below pinpoints the age at which you peak at everything in terms of your money.
Keep reading to learn more about the five financial peaks:
Age 25: You spend the most money you don’t have
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Anyone, regardless of age, can be guilty of overspending. But for the average American 20-something, the propensity to do so is often the greatest.
According to data from the Bureau of Labor Statistics, a 25-year-old’s average pre-tax income is $ 31,000, while their annual spending is about $ 33,000.
That means they’re most likely racking up debt — or getting help from Mom and Dad — to cover their expenses.
Living beyond your means is a bad financial habit to adopt, but entry-level salaries, expensive rent, and student loan debt aren’t helping millennials spend less and save more.
Age 40: You buy a home
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The typical US homebuyer is 40 and purchasing a home for $ 200,000, according to Zillow Group’s 2017 housing report.
But 42% of all homebuyers are part of the millennial generation — people between 18 and 37 — and becoming homeowners for the first time.
And many aren’t doing it alone. Nearly 70% of all homebuyers are married or have a partner and earn a median household income of $ 87,500.
Age 40: Women make the most money of their careers
Het Nieuwe Instituut/flickr
Women’s salary growth outpaces men’s up until about 30, when they start having children, then slows down considerably within the next decade, according to research from PayScale cited by CNBC.
College-educated women hit their peak earnings around 40, when their typical salary is about $ 60,000.
PayScale found that the most common jobs held by American women were registered nurse, elementary school teacher, and human-resources administrator.
See the rest of the story at Business Insider
See Also:
- Amazon, Walmart, and others sell fake products online — here’s how to avoid getting duped
- How much money you actually take home from a $ 75,000 salary under Trump’s new tax law, depending on where you live
- Americans spend an average of $ 125 a month on car insurance — here’s what people pay in every state
SEE ALSO: This is the age when most people become millionaires
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