A Guide to GFL NYC’s Research

78% of former NFL players have gone bankrupt or are under financial stress just two years after they stopped playing.
Sports Illustrated, “How and why athletes go broke”

60% of former NBA players are broke within five years after they stopped playing.
Sports Illustrated,“How and why athletes go broke”

34% of Americans have no money at all in savings.
CNBC, “Here’s how many Americans have nothing at all in savings”

People living on regular salaries have been able to save significant amounts of money: A Virginia school teacher who left $1 million to her school district; a secretary in NYC left $8 million to city charities; a navy nurse earning $70,000 per year left $1 million to a military charity; a New Jersey school teacher left $1 million to special education students; a janitor left $5 million to a hospital and $1 million to a library after amassing a fortune himself of $8 million.
PWC News; New York Times; Military News; CNBC; CNBC

If you save $6 per day (the cost of coffee in New York City) and invest it instead, and earn 8% interest over 40 years, you’ll end up with over $550,000.
Investor.gov

People who have the most success in reaching their goals are those who make very small changes that they can stick to.
Insights by Stanford Business, “Building Habits: The Key to Lasting Behavior Change”

In New York City, 37.2% of the average household budget goes toward housing (i.e., rent or mortgage); the national average is 33.1%. 12.5% of the typical NYC household budget goes toward food (national average is 12.9%), and 14.2% goes toward transportation (national average is 16.9%).
Bureau of Labor Statistics, “Consumer Expenditures in the New York Metropolitan Area, 2022–23”

More than 80% of people who set big goals (like a multi-year New Year's resolution) tend to not achieve them.
Journal of Substance Abuse, "The Resolution Solution: Longitudinal Examination of New Year's Change Attempts"

The 30% rule dictates that annual rent should be no more than 30% of your salary, but more than 30% of New Yorkers spend 50% of their salary on housing.
Shared Easy; Pix11

$8,000 is the median amount of savings among people with bank accounts.
Federal Reserve, "Survey of Consumer Finances"

87% of banked households have mainstream credit.
Federal Deposit Insurance Corporation, "FDIC National Survey of Unbanked and Underbanked Households"

34.9% of banked homes, vs. 4% of unbanked homes, hold a mortgage.
Federal Deposit Insurance Corporation, "FDIC National Survey of Unbanked and Underbanked Households"

In 2023, 4.2 percent of U.S. households – representing about 5.6 million households – were unbanked. Conversely, 95.8 percent of U.S. households – representing about 128.0 million households – were banked.
Federal Deposit Insurance Corporation, "FDIC National Survey of Unbanked and Underbanked Households"

In NYC, 9.4% households don’t have bank accounts.
NYC Department of Consumer and Worker Protection, "Where are the unbanked in NYC?"

Federal laws did not begin to prohibit discrimination in the financing of housing until the Fair Housing Act of 1968. Four years prior, the Civil Rights Act of 1964 prohibited racial discrimination in certain business sectors, but banking wasn’t one of them.
Urban Institute, "Building Trust in the Financial System Is Key to Closing the Racial Wealth Gap"

Amongst immigrant populations: Only 63% of immigrant heads of household have a checking account, 55% have a savings account; compare that to 76% and 68% for native-born household heads.
Federal Reserve Bank of Chicago, "Financial Access for Immigrants"

There is a higher presence of and participation in alternative financial services (like check-cashing businesses) in less-banked areas.The New York State Department of Financial Services, "Access to Financial Services in New York"

The top reasons people report not opening a bank account: (1) They don't think they have enough money to open one; (2) they don't trust banks and similar financial institutions.
Federal Deposit Insurance Corporation, "FDIC National Survey of Unbanked and Underbanked Households"

Check cashing stores, or places where people take their paychecks to get them paid out in cash, are capped in NY State at charging 2.2% of the check amount. A $500 check, for instance, would cost $11 to cash.
NY Department of Financial Services, "Check Casher Licensing"

Ally Online Bank and Apple Bank are two banks that have no minimum balance or fees to open a checking account.

Ally Bank Spending Account; Apple Bank Simple Checking Account

The average overdraft fee for a bank checking account is $27.08.
Bankrate, "Survey: ATM fees reach 26-year high while overdraft fees inch back up"

Various overdraft fees: Apple Bank charge $35 up to 3 times a day; Chase Bank charges $34 up to 3 times a day; Bank of America charges $10 up to twice a day.
Apple Bank; Chase Bank; Bank of America.

Despite fees, one-third of Americans opt into Overdraft Protection.
PEW, "Overdraft America: Confusion and Concerns about Bank Practices"

Those with opted-in Overdraft Protection are three times as likely to overdraft ten or more times per year compared to those who don’t have it (and just have their overdraft attempts declined).
Consumer Financial Protection Bureau, "Data Point: Checking account overdraft"

The average annual percentage rate (APR) on a credit card is 22.68%.
WalletHub, "Average Credit Card Interest Rates"

Paying a $1,000 on a credit card with a 22.68% annual percentage rate (APR) with take 12 years and 11 months, and cost $2,098.14 in interest (for a total cost of $3,098.14).
Credit card calculator

The average used car costs around $25,000.
Consumer Reports, "Used-Car Prices Remain High, With Fewer New Cars to Choose From"

Your credit score can make a difference in your auto loan rate; a very high score (781-850) might pay 6.82% on a used car, where a low score (601-660) might pay 13.74%. This can mean thousands of dollars in interest over the course of an auto loan.
NerdWallet, "Average Car Loan Interest Rates by Credit Score"

The average first-time homebuyer is now 38 years old.
National Association of Realtors, "First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High"

The average home price in NY state is over $500,000.
Zillow, "New York Housing Market"

Your credit score can make a difference in your mortgage rate; a very high score (760-850) might pay 7.24% on a used car, where a low score (620-639) might pay 7.83%. This can mean hundreds of thousands of dollars in interest over the course of a home loan.
The Mortgage Reports, "Current Mortgage Rates by Credit Score"

Landlords in NYC are allowed to ask for your credit score when you apply to rent an apartment. If you say no, they might not rent to you.
Azibo Legal, 'Understanding Tenant Screening Laws in New York"

Employers in NYC are generally not allowed to ask to see your credit score when you apply for a job. There are some exceptions – police officers will be asked to submit credit scores, as will higher level workers who control a company’s finances, computer security, or trade secrets.
NYC Commission on Human Rights. "Credit Check Law: For Employees"

Paying on time and in full is the top factor when it comes to determining your credit score.
Experian, "What Affects Your Credit Scores?"

On average, college students have over $3,280 worth of credit card debt.
CollegeFinance, "College Student Debt and Credit Card Usage"

Young people (18-24) are worst of any age group at managing credit; nearly 20 percent of young adults (ages 18 to 24) are in debt collection, meaning they’re unable to pay their credit card back.
Urban Institute, "What Can Policymakers Do to Help Young Adults Cope with Debt?"

Across generations, Gen Z is most likely (47%) to feel stressed after using credit cards
Yahoo Finance, "Rising Credit Card Debt Fuels Unprecedented Stress Levels, Aggravating Mental Health Issues"

Some teenagers may see 1,260 advertisements per day.
Federal Trade Commission, "Protecting Kids from Stealth Advertising in Digital Media"

America is an environment where every company is getting smarter, faster, and better at getting you to part with your money.
American Psychological Association, "How can behavioral science help our spending habits?"

Children who are exposed to a greater amount of consumer advertising go on to display stronger materialistic values and a greater desire to purchase the advertised products. This effect is particularly strong when people perceive advertisements to be an accurate portrayal of real life.
AdFree Cities, "When ads get into our psyche: Materialism and its consequences for people and planet"

People tend to spend twice as much with plastic cards than they do with cash.
Journal of Business Research, "How mobile payment influences the overall store price image"

People who use a loyalty app apps end up spending up to 20% more than people who don’t use them.
Zinrelo Loyalty, "Must-know brand loyalty and customer rewards program statistics"

Chipotle’s single largest sales day in 2024 was driven by a trivia game on its loyalty app.
PYMNTS, "Chipotle’s Loyalty Gamification Drives Record-Breaking Digital Sales"

The average movie has 12 products placed in it.
Sortlist Data Hub, "Product Placement Power"

Candy Crush, a free iPhone game, saw $1 billion in revenue in 2022 from selling in-game products like extra lives and power boosts. The video game Fortnight made $5 billion in a year from player clothes/accessories.
Money, "‘Free’ Games Like Candy Crush and Counter-Strike Are Wrecking People’s Finances"

While researchers will likely continue to look into the performance of generic versus brand-name drugs, the bulk of research out there shows that taking the no-name brand not only saves you money, but also provides you with a medication that is just as effective as the original.
Harvard Health Publishing, "Do generic drugs compromise on quality?"

Hungrier shoppers spend 64% than people who aren’t hungry -- and they buy less healthy food items.
PNAS, "Hunger promotes acquisition of nonfood objects"

People who feel sad are willing to spend up to 4 times as much as people who aren't.
Psychological Science, "Misery is not Miserly: Sad and Self-Focused Individuals Spend More"

When you shop with friends, you tend to spend more than when you shop alone.
Journal of Retailing and Consumer Services, "Greater patience and monetary expenditure"

If you make an initial investment of $2,000 and make no additional investments and the estimated interest rate is 8%, you will make $94,000 in 50 years.
Investor.gov, Compound Interest Calculator

If you invest $50 per month for 50 years with an initial investment of $0 and the estimated interest rate is 8%, you will make $344,000 in 50 years.
Investor.gov, Compound Interest Calculator

If you invest $50 per month for 50 years with an initial investment of $2,000 and the estimated interest rate is 8%, you will make $438,000 in 50 years.
Investor.gov, Compound Interest Calculator

People who have the most success are the people who make a very small change they can stick to.
Insights by Stanford Business, "Building Habits: The Key to Lasting Behavior Change"

A stock price can go up after you purchase it, but it can also drop down and go below the price you initially bought it for.
Macrotrends, NIKE - 45 Year Stock Price History

You can buy an S&P 500 index fund from Schwab with a minimum investment of $1 and an expense ratio of .02%.
Charles Schwab, Schwab S&P 500 Index Fund

You can buy an S&P 500 index fund from Fidelity with no minimum investment and an expense ratio of .015%
Fidelity, Fidelity 500 Index Fund

Over the last 10 years, index funds have earned a little more than 10% per year.
TradeThatSwing, "Historical Average Stock Market Returns for S&P 500 (5-year to 150-year averages)"

80% of Bitcoin investors have lost money.
CNBC, "Around 80% of Bitcoin investors have lost money, says a study"

96% percent of gamblers lose money to online gambling.
University of California, "Legalized gambling increases irresponsible betting behavior, especially among low-income populations"

The more you gamble, the more you lose.
BYU Magazine, "Gambling: What Are the Odds?"

People who don’t have a lot of money gamble more irresponsibly.
UC San Diego Today, "Legalized Gambling Increases Irresponsible Betting Behavior, Especially Among Low-Income Populations"

Investing scams cheat people out of more money than than any other type of scam.
CNBC, "Americans lost $5.7 billion to investment scams in 2024, FTC says. Here’s how to protect yourself"

Americans lost $5.7 billion by giving money to investment scammers in 2024.
CNBC, "Americans lost $5.7 billion to investment scams in 2024, FTC says. Here’s how to protect yourself"

The typical amount a person loses when they get scammed is $9,000.
CNBC, "Americans lost $5.7 billion to investment scams in 2024, FTC says. Here’s how to protect yourself"

Your odds of being struck by lightning are 1 in 12,000. Your odds of getting rich from cryptocurrency are 1 in 25,000. That means you’re about twice as likely to get struck by lightning than to get rich off crypto.
MLive, "Odds of being struck, and other amazing facts about lightning"; Medium, "Spin the Memecoin Wheel: What are the Odds of Becoming a Memillionaire?"

The odds of being killed by a shark attack are roughly one in 3.7 million. The odds of claiming the jackpot in a Powerball drawing are one in 292.2 million. That means you are more likely to be killed by a shark than win the Powerball.
Peta, "Lawn Mowers, Tanning Beds, and 20-Plus Other Things That Kill More People Than Shark Encounters"; Investopedia, "The Lottery: Is It Ever Worth Playing?"

Historically, people who have invested their money in S&P 500 index funds for a 15 year period made money 99.8% of the time.
Medium, "The Odds of Making Money in The Stock Market"

The median salary for recent college graduates is about $60,000 a year in the few years after graduation. The median salary for those who did not go to college but have a high school diploma is closer to $40,000.
The Federal Reserve Bank of New York, The Labor Market for Recent College Graduates

Four out of every ten college students don’t graduate within six years
Best Colleges, "Six-Year College Completion Rate Hits Record High"

There are two types of federal student loans: subsidized and unsubsidized loans. With subsidized loans, the government pays the interest on these loans while you’re still in school, and also for the first six months after you graduate. With unsubsidized loans, interest rates start racking up as soon as you borrow (though you don’t have to pay back until six months after graduation).
Federal Student Aid, Direct Subsidized and Direct Unsubsidized Loans

2 out of 3 students attend CUNY tuition-free.
CUNY, Tuition, Aid, and Scholarships

57% of graduating NYC high school students go to CUNY.
GraduateNYC, "The State of College Readiness and Degree Completion in New York City"

Students who take CUNY Start classes have more successful graduation rates.
MDRC, "An On-Ramp to Student Success"

CUNY ASAP students were twice as likely to earn an associate’s degree in three years than kids who don’t take ASAP.
CUNY, CUNY ASAP Fast Facts

There are 1.1 million credential programs in the US, but only 12% of them actually lead to a real wage gain.
National College Attainment Network, "Research Roundup: Credential Outcomes, Gen Z Perspectives, “Some College, No Credential” Growing"

Some articles report that half of parents and half of students think college is not worth it.
NYT Magazine, "Americans Are Losing Faith in the Value of College. Whose Fault Is That?"

In the U.S. specifically, a national study found that if a teen talks with parents or a close relative about their future plans, they’re 1.48 times less likely to be unemployed by age 25.
OECD Education Working Papers No. 258, "Indicators of teenage career readiness"

75% of high schoolers feel moderately, slightly, or not at all prepared for college/career choices.
You Science, Post-graduation readiness report

Studies have shown that when highschoolers talk about the jobs they might be interested in, they are more likely to have a job in their 20s, be happier in that job, and earn more money.
OECD Education Working Papers No. 258, "Indicators of teenage career readiness"

If you make less than $48,000 per year, New York offers a free tax software called FreeFile.
New York State Department of Taxation and Finance, E-file your income tax return

VITA, a free service that NYC offers which you can contact if you'd like to speak to a person for help filing your taxes.
New York State Department of Taxation and Finance, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE)

Students’ high school GPAs increased up about 15 hours worked per week, but declined as hours worked exceeded 15 hours.
BLS Working Papers, Time to Work or Time to Play: The Effect of Student Employment on Homework, Sleep, and Screen Time

For first-year college students, working less than 20 hours a week had a positive impact on their grades.
ERIC, "First-Year Students' Employment, Engagement, and Academic Achievement: Untangling the Relationship between Work and Grades"

Health insurance pays a big chunk of your medical bills for you -- whether it’s a big bill for a bike accident or something smaller and more routine like a check up.
Investopedia, Health Insurance: Definition, How it Works

The average deductible for NY employer plans is $1,722
KFF, Average Annual Deductible per Enrolled Employee in Employer-Based Health Insurance for Single and Family Coverage

The typical 18-24 year-old pays $0 - $500 per month for their health insurance premium.
Value Penguin, How Age Affects Health Insurance Costs

Health insurance deductibles can range from $200 to $5,000.
Mira, How Much is Health Insurance In NY for One Person?

Typical copays might be $10 each time you need prescription drugs and $25 for your annual care visit. Something more pricey, like an ER visit, might have a copay of $250.
NY State of Health, Summary of Essential Plan Costs and Benefits

As many as 66.5% of people who file for bankruptcy cite medical bills as the primary cause. More than half a million people file for bankruptcy each year for this reason.
National Library of Medicine, "Medical Bankruptcy: Still Common Despite the Affordable Care Act"

More than 15 million people are in serious medical debt in the US, including 5.9% of 18-29 year-olds.
Consumer Financial Protection Bureau, "CFPB Finds 15 Million Americans Have Medical Bills on Their Credit Reports"

Only 2.8% of NY children are uninsured.
Children's Healthcare Report Card, New York

Your parent's health insurance policy can cover you until you turn 26 years old, whether their health insurance is provided by their employer or they get it independently from the marketplace.
Healthcare.gov, Health Insurance Marketplace

If your parents qualify for Medicaid, they can cover your health insurance until you turn 19, or -- if you continue to live at home after that -- until you turn 21.
NYC.gov, Medicaid Income Eligibility Levels, NYC.gov 19-to-20-year-olds-medicaid

Child Health Plus or CHIP can cover your health insurance directly until you turn 19.
Health.ny.gov, Child Health Plus Eligibility and Cost

Many colleges offer health insurance for students.
NYT, What You Need to Know About Campus Health Insurance

Of all age groups, young people (19-34 years old) are most likely to go without health insurance.
U.S. Census Bureau, Uninsured Rates Highest For Young Adults Aged 19 to 34

73.7% of uninsured adults said that they were uninsured because the cost of coverage was too high.
U.S. Census Bureau, Survey of Income and Program Participation (SIPP)

A little over half (53.6%) of uninsured Americans between the ages of 18 and 26 reported a medical visit in the past year.
U.S. Census Bureau, Survey of Income and Program Participation (SIPP)

More than 30% of uninsured people ages 18 to 26 had to seek medical care for an injury or illness in the past year.
U.S. Census Bureau, Survey of Income and Program Participation (SIPP)

Uninsured young people have twice as much medical debt as their insured peers.
U.S. Census Bureau, Survey of Income and Program Participation (SIPP)

People who have the most success are the people who make a very small change they can stick to.

Insights by Stanford Business, "Building Habits: The Key to Lasting Behavior Change"

The average overdraft fee for a bank checking account is $27.08.
Bankrate, "Survey: ATM fees reach 26-year high while overdraft fees inch back up"

People who feel sad are willing to spend up to 4 times as much as people who aren't.
Psychological Science, "Misery is not Miserly: Sad and Self-Focused Individuals Spend More"

Willingness-to-pay can be increased when customers are instructed to use a credit card rather than cash. The effect may be large (up to 100%).

Marketing Letters, "Always Leave Home Without It: A Further Investigationof the Credit-Card Effect on Willingness to Pay"

People who use a loyalty app apps end up spending up to 20% more than people who don’t use them.
Zinrelo Loyalty, "Must-know brand loyalty and customer rewards program statistics"

80% of Bitcoin investors have lost money.

CNBC, "Around 80% of Bitcoin investors have lost money, says a study"

96% percent of gamblers lose money to online gambling.

University of California, "Legalized gambling increases irresponsible betting behavior, especially among low-income populations"

College grads earn $1.2 million more in their lifetime than those who only graduate high school.

Georgetown University, The College Payoff