As of 2021, the median household income in the United States was $67,521 per year, which equates to roughly $5,627 per month. However, this number can vary significantly based on a number of factors, including geographic location, industry, education level, and job experience. In this essay, we will explore the various factors that can impact the average American’s monthly income and provide some context for the numbers.
Geographic Location One of the biggest factors that can impact an American’s income is where they live. For example, according to the Bureau of Labor Statistics, the states with the highest median incomes as of 2020 were Massachusetts, Connecticut, New Jersey, Maryland, and Hawaii. These states had median incomes ranging from $78,000 to $94,000 per year, or roughly $6,500 to $7,800 per month.
In contrast, the states with the lowest median incomes were West Virginia, Arkansas, Mississippi, Kentucky, and Alabama, all of which had median incomes of less than $50,000 per year, or roughly $4,200 per month. Of course, the cost of living also varies widely by location, so a higher income in a more expensive area may not necessarily provide a better quality of life.
Industry The industry in which someone works can also have a significant impact on their income. According to data from the Bureau of Labor Statistics, as of May 2020, the industries with the highest median salaries were management, computer and mathematical occupations, legal occupations, healthcare practitioners and technical occupations, and architecture and engineering occupations.
On the other hand, the industries with the lowest median salaries were food preparation and serving-related occupations, personal care and service occupations, farming, fishing, and forestry occupations, building and grounds cleaning and maintenance occupations, and healthcare support occupations. The median salaries for these industries ranged from $21,350 per year ($1,780 per month) to $36,600 per year ($3,050 per month).
Education Level Another important factor that can impact an American’s income is their level of education. According to data from the Bureau of Labor Statistics, as of 2020, individuals with a bachelor’s degree had a median weekly income of $1,305, or roughly $5,370 per month. By comparison, individuals with only a high school diploma had a median weekly income of $746, or roughly $3,060 per month.
Similarly, individuals with advanced degrees tended to earn higher incomes than those with only bachelor’s degrees. For example, individuals with a master’s degree had a median weekly income of $1,497, or roughly $6,150 per month, while those with a professional degree had a median weekly income of $1,883, or roughly $7,740 per month.
Job Experience Finally, an individual’s level of job experience can also play a role in their income. Generally speaking, individuals with more experience in their field tend to earn higher salaries than those who are just starting out. For example, according to data from PayScale, as of March 2023, the median salary for an entry-level software engineer is around $76,000 per year, or roughly $6,333 per month, while the median salary for a senior software engineer with 20 years of experience is around $145,000 per year, or roughly $12,083 per month.
Similarly, according to data from the Bureau of Labor Statistics, the median salary for someone with less than one year of experience as a registered nurse is around $61,000 per year, or roughly $5,083 per month, while the median salary for a nurse with 20 years of experience is around $86,000 per year, or roughly $7,167 per month.