Ever wondered how your finances measure up? You’re not alone. We often think about where we stand compared to others financially – though few of us like to admit it. Getting a sense of your financial health can be motivating, especially when it’s not about competition but about setting realistic goals for yourself.
Don’t Miss:
What is Net Worth, Really?
Before diving into numbers, clarifying what “net worth” means is important. Simply put, it’s what you own (assets) minus what you owe (liabilities). Assets include things like your home, car, investments and savings. Liabilities are things like mortgages, credit card debt and student loans. Think of net worth as a quick snapshot of your financial health. It’s a bigger picture than income alone, revealing how much you’ve kept.
See Also: Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
Net Worth by Income Level
According to the Federal Reserve’s latest data, here’s how net worth varies across different income brackets:
-
Under $34,600: Median net worth of $14,000, average of $129,700
-
$34,600-$59,499: Median of $71,000, average of $218,700
-
$59,500-$91,899: Median of $159,300, average of $385,400
-
$91,900-$153,099: Median of $307,200, average of $636,800
-
$153,100-$245,399: Median of $747,000, average of $1,264,700
-
$245,400 and higher: Median of $2,556,200, average of $6,629,600
Upper-income households in the U.S. generally have a net worth significantly higher than lower-income households. According to Pew Research Center, the median net worth of upper-income households is roughly 7.3 times greater than that of middle-income households, and 75 times that of lower-income households.
Trending: Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.
What You Can Learn from the Data
There are a few standout takeaways:
Median vs. Average: The U.S. household median net worth is $192,700, while the average is around $1.06 million. The gap highlights how high-net-worth individuals skew the overall average.
Age Matters: Net worth tends to peak for those aged 65-74, averaging around $1.78 million. Years of saving and investing build up.
