Datastream
Visualizing U.S. Household Debt, by Generation
Introducing our new index, which ranks U.S. generations on their economic, political, and cultural influence.
The Briefing
- Generation X is the most indebted generation on average, with $140,643 of household debt
- Younger generations are witnessing their debts growing at a greater pace relative to older Americans
Visualizing U.S. Household Debt, by Generation
The year 2020 could be categorized as one where debt grew across the board. In the U.S., every generation except the Silent Generation saw their debts rise in the last year.
But how much debt does each generational household owe?
| Generation | 2019 | 2020 | Growth (%) |
|---|---|---|---|
| Generation Z (18-24) | $9,593 | $16,043 | 67.2% |
| Millennials (25-40) | $78,396 | $87,448 | 11.5% |
| Generation X (41-56) | $135,841 | $140,643 | 3.5% |
| Baby Boomers (57-75) | $96,984 | $97,290 | 0.3% |
| Silent Generation (76+) | $43,255 | $41,281 | -4.6% |
Gen X are the most indebted Americans followed by the Baby Boomers. The breakdown of debt by age group suggests the typical American’s debts grow with adulthood to a certain age, at which point it begins to taper off.
Download the Generational Power Report (.pdf)
Digging Deeper
The types of debt vary in significance for each generation. For instance, the leading source of debt for Gen Z and Millennials are student loans (20%) and credit card bills (25%), respectively. Mortgages on the other hand, are the leading source of debt for Gen X (30%) and Baby Boomers (28%).
Collectively, American households have a debt pile of $14.5 trillion, with mortgages representing the majority, at 70%.
Here’s how home mortgages by generation breaks down.
| Generation | Portion of Mortgage Debt |
|---|---|
| Silent Generation | 4.8% |
| Baby Boomers | 29.0% |
| Generation X | 42.0% |
| Millennials | 24.2% |
| Generation Z | - |
Given mortgages represent the largest slice and that Gen X is the most indebted household, it stands to reason that at 42%, Gen X carries the most mortgage debt out of any generation.
Editor’s note: It should be mentioned that the Federal Reserve is yet to include Gen Z in some of their data.
Zooming Out
Though debts are rising for most U.S. households, they still pale in comparison to other countries. Here’s how household U.S. debt ranks on the international stage.
| Country / Territory | Household Debt to GDP (September 2020) |
|---|---|
| 🇨🇭 Switzerland | 131% |
| 🇦🇺 Australia | 122% |
| 🇳🇴 Norway | 112% |
| 🇩🇰 Denmark | 112% |
| 🇨🇦 Canada | 110% |
| 🇳🇱 Netherlands | 104% |
| 🇰🇷 South Korea | 101% |
| 🇳🇿 New Zealand | 95% |
| 🇸🇪 Sweden | 93% |
| 🇬🇧 United Kingdom | 89% |
| 🇭🇰 Hong Kong SAR | 88% |
| 🇺🇸 U.S. | 78% |
The U.S. ranks 12th in global household debt to GDP rankings.
In addition to being the largest economy by GDP, America’s GDP per capita remains one of the highest out of major countries, suggesting these high debts by generation are in part offset by high incomes.
Looking Ahead
Increasing debts have been manageable due to a low interest rate environment. This has persisted for well over a decade, and is expected to remain the case for the near future.
Whether this can hold steady in the long run is still largely unknown.
Where does this data come from?
Source: Federal Reserve, Experian
Notes: Household debt to GDP data is as of September 2020
Central Banks
Charted: Public Trust in the Federal Reserve
Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.
The Briefing
- Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
- After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low
Charted: Public Trust in the Federal Reserve
Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.
More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.
Methodology and Results
The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.
| Year | Fed chair | % Great deal or Fair amount |
|---|---|---|
| 2023 | Jerome Powell | 36% |
| 2022 | Jerome Powell | 43% |
| 2021 | Jerome Powell | 55% |
| 2020 | Jerome Powell | 58% |
| 2019 | Jerome Powell | 50% |
| 2018 | Jerome Powell | 45% |
| 2017 | Janet Yellen | 45% |
| 2016 | Janet Yellen | 38% |
| 2015 | Janet Yellen | 42% |
| 2014 | Janet Yellen | 37% |
| 2013 | Ben Bernanke | 42% |
| 2012 | Ben Bernanke | 39% |
| 2011 | Ben Bernanke | 41% |
| 2010 | Ben Bernanke | 44% |
| 2009 | Ben Bernanke | 49% |
| 2008 | Ben Bernanke | 47% |
| 2007 | Ben Bernanke | 50% |
| 2006 | Ben Bernanke | 41% |
| 2005 | Alan Greenspan | 56% |
| 2004 | Alan Greenspan | 61% |
| 2003 | Alan Greenspan | 65% |
| 2002 | Alan Greenspan | 69% |
| 2001 | Alan Greenspan | 74% |
Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”
We can see that trust in the Federal Reserve has fluctuated significantly in recent years.
For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.
On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.
Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.
Confidence Now on the Decline
After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.
This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:
- Negative impact on the stock market
- Increases the burden for those with variable-rate debts
- Makes mortgages and home buying less affordable
Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.
Where does this data come from?
Source: Gallup (2023)
Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.
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