Survey of Consumer Finances

Anonymous man in casual clothes sitting at table and typing on laptop keyboard while working on remote project at home

Problem

The Federal Reserve needs reliable, accurate financial data about American households.

The Federal Reserve System is responsible for promoting maximum employment, maintaining stable prices, and moderating systemic risks to the U.S. economy. Quality information about the financial well-being of U.S. households is vital for the Fed to understand how central bank policies ripple through the system.

Solution

NORC conducts the Survey of Consumer Finances, the most comprehensive survey of American finances.

Since 1992, NORC has conducted the Survey of Consumer Finances (SCF) with sponsorship from the Federal Reserve Board. The SCF is unique. This triennial survey is the only fully representative source of information on the broad financial circumstances of U.S. households. Every three years, beginning the day after Tax Day, NORC queries roughly 6,000 scientifically selected participants about their financial well-being. The survey covers:

Attitudes about financial institutions
Credit attitudes and credit card use and debt
Principal residences and lines of credit
Real estate and loans to others
Small business ownership
Vehicle ownership and loans
Education loans
Attitudes about savings
Financial assets
Employment status
Retirement savings and pensions
Income, taxes, and support
Inheritances and charity
Impact of COVID-19 pandemic
Demographics and health
Finances of independent household members

NORC researchers use multiple sources to ensure the 6,000 respondents are a representative demographic sample, and they make an extra effort to include high-income earners, who are difficult to recruit.

Result

Informing policy and business decisions for more than 30 years.

The SCF is the only fully representative source of information about the finances of U.S. households. For 30 years, the data has informed U.S. monetary and tax policies, consumer protection initiatives, and federal legislation. Numerous agencies rely on SCF data, including the departments of the Treasury, Justice, and Commerce, and the Federal Deposit Insurance Corporation. SCF data also helps individuals, small businesses, and corporations navigate the economy. The Federal Reserve Bank of Saint Louis’s Center for Household Financial Stability relied on the SCF in their examination of how age influenced the recovery of households from the Great Recession. SCF data showed that people under 40 have recovered only about one-third of their lost wealth, while those over 40 have recovered almost all of it. SCF data has also informed the ongoing debate about affirmative action. White Americans account for 78 percent of the population and 88 percent of the nation’s wealth, while black Americans—who make up more than 13 percent of the population—own only 3 percent of the wealth.