Your spending habits, debt patterns, and credit score are the day-to-day levers that shape your financial health. These indicators can help you see where you’re in good shape—and where you might need to make a tweak or two.
Just remember: the numbers guide you, they don’t define you.
1. Spending comparisons
Bank of America publishes a simple spending tool that helps you compare how your spending compares to others your age and with similar income. Your biggest expenses are typically housing, transportation, food, and health care; but these may be more challenging to change. (Though if you can reduce one of the big 4, they can have a huge impact on your feeling of financial freedom.) Instead, compare how you spend on other categories, where a quick change might be easier. If you find an area where your spending is measurably higher than others’, spend some time thinking about what’s truly important to you and asking whether there are emotional triggers that explain your spending. You may find there are small ways to reframe the way you think about money.
Tool: Better Money Habits calculator
Money Nudge: Pick one category — like dining out, or subscriptions — and see how your spending compares to the average. Are you surprised? Would a small adjustment make a difference?
2. Credit score benchmarks
Think of your credit score as your financial reputation. A higher score means banks, lenders, stores, and even landlords often offer lower interest rates and easier approvals. And that can save you a lot of money.
Average scores by age:
- Ages 18–29: 680
- 30–39: 691
- 40–49: 704
- 50–59: 721
- 60 and above: 752
Source: Nerdwallet
Money Nudge: Check your score for free on AnnualCreditReport.com, the only government-authorized website where you can get a credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Choose one action this month to boost it. Can you automate your bill payments? Paying on or before a due date is the number one factor that impacts your credit score.
3. Debt-to-income ratio
Lenders use this ratio to measure how much of your monthly income goes toward debt payments. It’s a good way to understand how stretched you are.
How to calculate it: Add up how much you pay on debts each month (minimum credit card, loan, and mortgage payments, etc.) and divide by your gross monthly income (i.e., your monthly pay before taxes are taken out).
For example, $1,225 in monthly debt payments divided by a monthly salary of $3,500 = 35%.
Money Nudge: You want your debt-to-income ratio below 36%. If yours is higher, see if you can make an extra payment on one debt. Even small amounts make a difference over time.
Final thought:
Comparisons are just a starting point. They can highlight opportunities for improvement, but everyone’s situation is different. Let these benchmarks inspire you, not discourage you. Be curious and try taking small, confident steps.
Haven’t checked your net worth, income, and savings yet?
Start with Part 1: Net worth, income & savings for a bigger-picture view of your financial health.