Americans' Net Worth Falls
Author: Mark Whitehouse</br></br>U.S. households saw their wealth decline in the second quarter despite their efforts to save more money, underscoring the economy's struggle to recover from the recession.</br></br>The Federal Reserve reported Friday that household net worth--stocks, bonds, homes and other assets, minus mortgages and other debts--fell 2.8% to $53.5 trillion in the second quarter, driven by a sharp decline in the value of stock investments. The drop, the first since the darkest days of the financial crisis in early 2009, left average net worth at about $182,000 a person--though the average is pulled up by a small group of the very wealthy.</br></br>The numbers highlight the extent to which erratic financial markets are adding to the job troubles already weighing on consumers. While markets have rebounded somewhat in recent weeks, many people are keeping a lid on spending and focusing on repairing damaged nest eggs.</br></br>"I worry every day about our financial future," said Steve Gohmann, a 62-year-old retired insurance industry executive. He said that he and his wife were cutting their discretionary spending by some 18% this year while they try to rebuild their investments, which are down about 13% from their peak in 2007. Among the cuts: Golf outings and membership in a California wine club.