email

Enter Your Information Below To Receive Latest News And Articles

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Top

Top Investors Forum

  /  News   /  Do I fall in America’s lower, middle, or upper class? How your income stacks up in the US economic class system

Do I fall in America’s lower, middle, or upper class? How your income stacks up in the US economic class system

S&P Futures

3,733.50

-38.50(-1.02%)

 

Dow Futures

29,842.00

-307.00(-1.02%)

 

Nasdaq Futures

11,463.75

-101.75(-0.88%)

 

Russell 2000 Futures

1,704.50

-23.30(-1.35%)

 

Crude Oil

79.72

-3.77(-4.52%)

 

Gold

1,663.00

-18.10(-1.08%)

 

Silver

19.17

-0.45(-2.28%)

 

EUR/USD

0.9769

-0.0068(-0.69%)

 

10-Yr Bond

3.7010

-0.0070(-0.19%)

 

Vix

28.60

+0.61(+2.18%)

 

GBP/USD

1.1067

-0.0187(-1.66%)

 

USD/JPY

142.9030

+0.5680(+0.40%)

 

BTC-USD

19,040.23

-106.87(-0.56%)

 

CMC Crypto 200

436.91

+9.38(+2.19%)

 

FTSE 100

7,025.91

-133.61(-1.87%)

 

Nikkei 225

27,153.83

-159.30(-0.58%)

 

Do I fall in America’s lower, middle, or upper class? Here’s how your income stacks up in the US economic class system

The dividing lines that define Americans by wealth class and status have always been blurry.

For many households, where they fit in the income ladder comes down to a feeling rather than numbers. But do the facts line up with your feelings?

Don’t miss

What would you do if you had an emergency vet bill worth $2k tomorrow?

Too many Americans are still missing out on cheaper car insurance

Boomer’s remorse: Here are 5 big purchases you’ll (probably) regret in retirement

This investing app turns spare change into a diversified portfolio

Pew Research Center’s income calculator is the quickest way to find the answer to that question.

But after you find out how you stack up, you may find the more important question is what do you do with that information so can safely keep ascending that ladder.

Upper

Based on Pew’s analysis, a household of three would need an income of $156,600 to meet the definition of upper class, which it defines as household incomes more than double the national median.

In analyzing the trends, Pew points out that the wealthiest households are the only ones to have seen gains in wealth after the start of the Great Recession. Between 2007 and 2016, the median net worth of the richest 20% increased 13% to $1.2 million.

Meanwhile, the lowest earners saw their wealth decrease by at least 20% over that same period of time.

The result of that is the wealth gap between America’s richest and poorest families has grown into a chasm — more than doubling between 1989 and 2016.

Middle

Many Americans associate themselves with the middle class. In fact, a Gallup survey earlier this year shows that just over half of people identify as either middle or upper middle class.

According to Pew’s calculator, that feeling lines up with reality when they’re earning between $52,200 and $156,600.

The research defines middle-income Americans as those whose annual household income is two-thirds to double the national median when adjusted for local cost of living and household size. In 2021, the median income was $70,784, according to Census Bureau data.

However, while household incomes have been trending upward since 1970, Pew’s research reveals that most of the increases were seen before 2000. In those three decades, the median income rose by 41% to $70,800.

If after 2000 household income had continued to grow at the same rate, the current median would be about $87,000 — significantly more than it is now.

Lower

Based on Pew’s analysis, that same three-person household would be considered low-income if they’re bringing in less than $52,200 a year.

However, keep in mind that geography matters here: In Kansas City, Mo., for instance, that national figure represents a middle-class income but would be considered fairly low in New York City.

But what’s important to highlight when discussing lower-income households is the opportunities for advancement. While middle-class households rely on home equity to build their net worth and upper-class families rely on financial assets and investments to build their wealth, lower-income earners have fewer options to get ahead.

In fact, research indicates that the wider the wealth gap, the harder it is for lower-income Americans to move up the class ladder.

It’s not just about the numbers

It’s important to consider economic status as a holistic snapshot that considers far more than simple income.

Researchers have determined that education, location, social connections and other factors can inform a person’s class identification.

On top of that, less-tangible measures of holistic wealth — mental and physical well-being, access to cultural assets, a healthy social network — can all factor in as heavily as income and lead someone with a technically lower-class income to feel as fulfilled as any upper-income earner.

Consider, too, that some high-income earners could technically qualify as an upper-class household even as debt and other financial obligations leave them, practically, in a much different place.

So do the numbers matter? Maybe. But they can always change.

What might matter more is snatching up the opportunities available to your family to continue to keep your household moving up those rungs.

What to read next

High prices, rising interest rates and a volatile stock market — here’s why you need a financial advisor as a recession looms

If you owe $25K+ in student loans, there are ways to pay them off faster

With interest rates rising, now might be the time to finally tap into your home equity for cash

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Advertisement

SmartAsset

Genius Loopholes That Can Get You Early Access to Retirement Funds

Generally, when you save for retirement, your goal should be not to touch the money until you are actually retired. Sometimes, though, life gets in the way and you need to dip into your retirement savings a bit earlier than … Continue reading → The post 4 Lucrative Loopholes That Can Get You Early Access to Retirement Funds appeared first on SmartAsset Blog.

MarketWatch

Pfizer to supply Global Fund up to 6 million courses of its COVID antiviral Paxlovid for low-and-middle-income countries

Pfizer Inc. said Thursday it has reached an agreement to supply up to six million treatment courses of its COVID antiviral Paxlovid to the Global Fund for low and middle-income countries. The company said it expects supply to be available starting in 2022, pending regulatory authorization or approval and based on demand from individual countries. “Through Global Fund’s framework and mechanism, eligible countries will be offered treatment courses according to Pfizer’s tiered pricing approach, whe

The Wall Street Journal

Amazon, Microsoft, Google Face Cloud-Services Examination in U.K.

The U.K.’s Office of Communications is probing the companies’ market positions in the coming weeks as part of a market study into the country’s cloud-infrastructure-services sector.

Variety

‘Beverly Hills Cop’ Original Cast Members Returning for Netflix Sequel ‘Axel Foley’

Eddie Murphy is reuniting with his original “Beverly Hills Cop” co-stars — Judge Reinhold, John Ashton, Paul Reiser and Bronson Pinchot — for the upcoming sequel, “Beverly Hills Cop: Axel Foley.” Netflix picked up the rights in 2019 to release the next “Beverly Hills Cop” movie, which is currently in production. “Axel Foley” is the […]

Reuters

Britain bets all on historic tax cuts and borrowing, investors take fright

LONDON (Reuters) -Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing on Friday in an economic agenda that floored financial markets, with sterling and British government bonds in freefall. Kwarteng scrapped the country’s top rate of income tax, cancelled a planned rise in corporate taxes and for the first time put a price tag on the spending plans of Prime Minister Liz Truss, who wants to double Britain’s rate of economic growth.

MarketWatch

‘Moore’s Law’s dead,’ Nvidia CEO Jensen Huang says in justifying gaming-card price hike

Nvidia Corp. Chief Executive Jensen Huang on Wednesday said he thinks it’s going to be “a pretty terrific Q4 for Ada,” the company’s next-generation chip architecture it unveiled this week, even as critics balk of a price hike during a softening in consumer demand.

Benzinga

Morgan Stanley Bats For Nike’s Outlook Cut Due To Unfavorable Environment

Morgan Stanley analyst Alex Straton reiterated an Overweight rating on the shares of Nike Inc (NYSE: NKE) and lowered the price target from $149 to $129. The analyst believes both the topline and gross margin for Q1 FY23 could come in shy of consensus/guidance on softer demand and imbalanced inventory in North America and Europe, as well as forex headwinds. In the analyst’s view, softer demand trends in the company’s two largest geographies (together 66% of FY22 total sales) likely prove enough

Yahoo Finance Video

Yahoo Finance LIVE – Sept.30 AM

Executives, experts, and influencers join the Yahoo Finance team to discuss what’s moving the world of finance.

TheStreet.com

Stocks Extend Slide, Costco, DocuSign, Boeing, Apple in Focus – 5 Things To Know

Stock futures extend slide amid global market slump; Costco beats on Q4 earnings but profit margins pressured; DocuSign shares get bump from new CEO appointment; Boeing, ex-CEO Muilenburg, agree $200 million SEC fine and Apple wins Super Bowl halftime show sponsorship race.

Motley Fool

Before You Buy Chevron or Enterprise Products Stock: Here’s 1 Energy Dividend Stock I’d Buy First

Needless to say, this has investors — especially those looking for dividends — very interested in energy stocks right now. Two in particular are getting a lot of attention: Chevron (NYSE: CVX) and Enterprise Products Partners (NYSE: EPD). While both Chevron and Enterprise Products are strong companies (I own Enterprise Products, too), there are some characteristics of Phillips 66 that are very compelling.

Motley Fool

2 Things Warren Buffett Just Did for the First Time This Century

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has a knack for making money. It’s jaw-dropping returns like this that have garnered Buffett quite the following from professional and everyday investors alike. The easiest way to track what Buffett and his investment team are buying, selling, and holding is to keep tabs on Berkshire Hathaway’s Form 13F filings with the Securities and Exchange Commission.

Post a Comment