The average American is closer to being homeless than being Elon Musk Show Caption Hide Caption Trump says tariffs may impact how much parents buy for kids President Donald Trump says that tariffs on China may impact the cost of products for children. When discussing the effects of his tariffs, President Donald Trump said maybe children will get “two dolls instead of 30” and maybe they’ll cost “a couple of bucks more” in 2025. But could the average American afford 30 dolls?
It might be difficult. The average American makes roughly $62,000 a year, more than half of Americans say they're barely making ends meet, and 2 out of 5 don't have $1,000 to spare if their car breaks down or another emergency crops up. In contrast, Trump, who Forbes estimates has a net worth hovering around $5 billion, has surrounded himself with other billionaires, appointing several of them to the wealthiest presidential cabinet in U.S. history.
His pick to lead the Department of Government Efficiency, Elon Musk, is the richest person in the world. This year alone, Musk lost nearly $100 billion of his net worth, leaving him with $333 billion, Bloomberg estimates. That’s more money than the average American could get even if they win the Powerball jackpot, which has never exceeded $2.04 billion.
The odds for grabbing such a windfall are 1 in 292.2 million. So what's the financial reality for the average person? More: Is America's economic slip temporary?
Trump, Biden allies divided over GDP report One crisis away from homelessness While discretionary spending is somewhat determined by priorities, income is the key factor when calculating what and where to spend. A recent NerdWallet survey found that 57% of Americans said they were living paycheck to paycheck. As wealth inequality continues to rise, more than half of the nation is in effect “one crisis away from homelessness,” according to the U.S. Interagency Council on Homelessness.
What is the median U.S. salary? American workers made a median wage of $1,192 per week in the first quarter of 2025, according to a U.S. Bureau of Labor Statistics (BLS) report, which would add up to $61,984 per year. But how much you make often depends on various factors including gender.
In the year’s first quarter, women brought in a median wage of $1,092 per week, earning less than men who brought in $1,303. Median wages also can vary by race. Asian men and women earned the most, making $1,822 and $1,455 per week, respectively.
They were followed by White men and women, who earned $1,342 and $1,103 per week, respectively. Median weekly wages for Black men and Hispanic men were the next highest, making $1,017 and $991 per week respectively. They were followed by Black women and Hispanic women who earned $984 and $879 per week respectively.
What is the minimum wage? The federal minimum wage is $7.25 per hour and has been since 2009. Most U.S. states, districts, and territories have established higher minimum wages, above the federal rate, for their residents.
But in 22 states and two territories, the federal minimum wage applies. Overall, 1 million Americans worked for wages at or below the federal minimum in 2022, according to the Bureau of Labor Statistics. Among them, 141,000 workers made exactly $7.25 per hour and about 882,000 earned less.
To get by in most states, the MIT Living Wage Calculator estimates the average single person needs to make about $45,000 a year, or $21.63 an hour, assuming a 40-hour work week. You’ll need more in states with higher costs of living, like California and New York. More than half of Americans struggle to pay for emergencies Although 60% of Americans said they needed to cover an unexpected expense last year, 2 in 5 don’t have an emergency savings fund and couldn’t afford a $1,000 unexpected expense, according to a U.S. News survey.
Demographics also matter in terms of savings. At 49%, almost half of women said they didn’t have an emergency fund, compared to 36% of men, according to the survey. For those without savings, the most popular way to cover an emergency expense is to use a credit card, according to a Bankrate report.
That strategy comes with high interest rates that can leave Americans in an even worse financial situation. Experts advise building an emergency fund as soon as you can. Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
