There’s no doubt that financial decisions have a crucial impact on our lives.
Everyone should have access to knowledge on how to save money, buy a home, make smart purchases, and build a robust portfolio of investments. This information can be dry at times, but it can also be the difference between being living month-to-month and achieving financial independence.
Yet statistics show that only about 16.4% of high school grads were required to take a course on personal finance, and problems go far deeper than that. Right now, financial literacy is dropping around the globe – and even worse, a record-high amount of debt is weighing younger generations down.
Introducing Wealth 101
Today we’re proud to announce our partnership with U.S. non-profit Next Gen Personal Finance, which specializes in offering free personal finance resources for teachers and students.
Together, we’ve created Wealth 101, an educational resource that will feature regular infographics on how to make responsible financial decisions:
|About Wealth 101
Wealth 101 is the personal finance course you’ve always deserved. Using powerful infographics and data visualizations, it will be updated regularly to build out a compelling base of lessons for people of all ages and backgrounds.
Wealth 101 infographics can all be accessed at http://wealth.visualcapitalist.com
(These infographics will also be posted on the regular Visual Capitalist site, as well.)
To start, here are our first two infographics for the project.
The first deals with the problem of financial literacy, while the other showcases the financial concepts that we’ll be addressing as we build out Wealth 101.
The Financial Literacy Problem
Financial literacy has been dropping for years. This giant infographic shows why that’s a problem, and what we can do to make future generations more prepared:
The Personal Finance Landscape
This personal finance wheel covers the most important concepts you need to know in order to gain financial independence:
Click on the above previews to see the full infographics.
Lastly, we appreciate your support as we continue to build out this resource!
NGPF is a free high-school personal finance curriculum and professional development partner helping teachers deliver essential money understanding in an easy-to-grasp, engaging way.
Visual Capitalist is a leading financial media site that creates and curates enriched visual content focused on emerging trends in business and investing.
Which Countries Have the Most Wealth Per Capita?
How do the rankings of the world’s most affluent countries change when using different metrics to measure wealth per capita?
Which Countries Have the Most Wealth Per Capita?
Our animated chart this week uses data from the ninth Credit Suisse Global Wealth report, which ranks countries by average wealth, calculated as gross assets per adult citizen.
While using such a metric certainly gives a quick snapshot of wealth per capita, it doesn’t necessarily show the complete picture.
Some argue, for example, that calculating the mean doesn’t factor in the gap between the richest and poorest in a population—also known as wealth inequality. For this reason, we’ve compared this number to median wealth for each country, providing a separate angle on which countries really have the most wealth per capita.
Mean or Median: Which Makes More Sense?
Below, we’ve visualized a hypothetical example of two groups of people, each earning various sums of money, to show how average (mean) and median calculations make a difference.
What can we observe in both datasets?
- Total wealth: $2,000
- Total people: 15 people
- Average wealth: $2,000 ÷ 15 = $133
However, that’s where the similarities end. In the first group, wealth is distributed more evenly, with the disparity between the lowest-paid and highest-paid being $300. The median wealth for this group reaches $100, which is close to the average value. In the second group, this gap climbs to $495, and the median wealth drops sharply to only $30.
Scaling up this example to the true wealth of nations, we can see how the median wealth provides a more accurate picture of the typical adult, especially in societies that are less equal.
Let’s see how this shakes out when ranking the world’s most affluent countries.
Ranking Top Contenders on Wealth per Capita
When it comes to wealth per capita, it’s clear that Australia and Switzerland lead the pack. In fact, the data shows that both nations top the lists for both mean and median wealth.
However, both nations also have the highest absolute household debt-to-GDP ratios in the world: in 2018, Switzerland’s levels reached nearly 129%, while Australia followed behind at 120%.
Here is a full ranking of the top 20 countries by mean and median wealth:
|Rank||Country||Mean wealth per adult||Country||Median wealth per adult|
|#1||🇨🇭 Switzerland||$530,244||🇦🇺 Australia||$191,453|
|#2||🇦🇺 Australia||$411,060||🇨🇭 Switzerland||$183,339|
|#3||🇺🇸 United States||$403,974||🇧🇪 Belgium||$163,429|
|#4||🇧🇪 Belgium||$313,045||🇳🇱 Netherlands||$114,935|
|#5||🇳🇴 Norway||$291,103||🇫🇷 France||$106,827|
|#6||🇳🇿 New Zealand||$289,798||🇨🇦 Canada||$106,342|
|#7||🇨🇦 Canada||$288,263||🇯🇵 Japan||$103,861|
|#8||🇩🇰 Denmark||$286,712||🇳🇿 New Zealand||$98,613|
|#9||🇸🇬 Singapore||$283,118||🇬🇧 United Kingdom||$97,169|
|#10||🇫🇷 France||$280,580||🇸🇬 Singapore||$91,656|
|#11||🇬🇧 United Kingdom||$279,048||🇪🇸 Spain||$87,188|
|#12||🇳🇱 Netherlands||$253,205||🇳🇴 Norway||$80,054|
|#13||🇸🇪 Sweden||$249,765||🇮🇹 Italy||$79,239|
|#14||🇭🇰 Hong Kong||$244,672||🇹🇼 Taiwan||$78,177|
|#15||🇮🇪 Ireland||$232,952||🇮🇪 Ireland||$72,473|
|#16||🇦🇹 Austria||$231,368||🇦🇹 Austria||$70,074|
|#17||🇯🇵 Japan||$227,235||🇰🇷 South Korea||$65,463|
|#18||🇮🇹 Italy||$217,727||🇺🇸 United States||$61,667|
|#19||🇩🇪 Germany||$214,893||🇩🇰 Denmark||$60,999|
|#20||🇹🇼 Taiwan||$212,375||🇭🇰 Hong Kong||$58,905|
The United States boasts 41% of the world’s millionaires, but it’s clear that the fruits of labor are enjoyed by only a select group—average wealth ($403,974) is almost seven times higher than median wealth ($61,667). This growing inequality gap knocks the country down to 18th place for median wealth.
The Nordic countries of Norway and Denmark can be found in the top ten for average wealth, but they drop to 12th place ($80,054) and 19th place ($60,999) respectively for median wealth. Despite this difference, these countries also provide a strong safety net—including access to healthcare and education—to more vulnerable citizens.
Finally, wealth in Japan is fairly evenly distributed among its large middle class, which lands it in seventh place on the median wealth list at $103,861. One possible reason is that the pay gap ratio between Japanese CEOs and the average worker is much lower than other developed nations.
With reducing income inequality as a priority for many countries around the world, how might this list change in coming years?
Footnote: All data estimates are using mid-2018 values, and reflected in US$.
How Much Student Debt Does Each State Hold?
Crippling student debt in the U.S. has reached a record high of $1.5 trillion nationwide. Today’s map breaks down which states bear the highest burden.
How Much Student Debt Does Each State Hold?
Education may be priceless, but the costs of obtaining it are becoming steeper by the day.
Almost half of all university-educated Americans rely on loans to pay for their higher education, with very few graduating debt-free. Total U.S. student debt has more than doubled in the last decade—reaching a record high of $1.5 trillion today.
Today’s data visualization from HowMuch.net breaks down the average student debt per capita, to uncover which states shoulder the highest burden in this growing crisis.
Students are Paying Through the Nose
Before diving into the graphic, let’s take a quick look at why student debt is racking up. The ballooning costs to attend college today compared to thirty years ago is one driving factor.
Source: The College Board 2018 report.
What’s more, these figures don’t include the expenses for accommodation and other supplies, which can add another $15,000-$17,000 per year.
The United States of Student Debt
In the state map above, it’s immediately obvious that Washington D.C. tops the list. While the nation’s capital is the most educated metropolitan area in the country, it also suffers from $13,320 in student debt per capita.
At approximately 147% above than the national average of $5,390, Washington D.C.’s debt burden per capita is almost double that of the state in second place. Georgia comes in with $7,250 debt per capita, 34.5% above the national average.
|State||Student Debt per Capita||Difference from Average|
|District Of Columbia||$13,320||147.1%|
Rounding out the five states with the most student debt per capita are Maryland, Minnesota, and Ohio, in that order. On the flip side, Wyoming has the least debt per capita ($3,610), which is 33.0% lower than the national average. Hawaii follows right behind at $3,780, and 29.9% below the national average.
Interestingly, a growing population on the West Coast helps to lower the debt burden for states like California, even despite the strong presence of prestigious schools. Home to Stanford, USC, UCLA, CalTech, and more, the Golden State surprisingly only has $4,530 in debt per capita.
The Last Straw?
Today’s Americans are more educated than ever before, but the sticker shock is causing some whiplash. This overall trend of spiraling student debt has significant implications on a person’s life trajectory. With many graduates unable to repay their loans on time, more of them are delaying major life milestones, such as starting a family or becoming a homeowner.
In efforts to curb this crisis, many 2020 presidential hopefuls have already started proposing plans to cancel or forgive student debt—with close attention on mid- to low-income households that would benefit the most from reduced loans.
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