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As of 2022, the average net worth of Americans under 35 was $183,500, $549,600 for ages 35 – 44, $975,800 for 45 – 54, $1,566,900 for 55 – 64, $1,794,600 for 65 – 74 and $1,624,100 for 75 and up.
Your net worth provides a fuller picture of how much you currently own and how financially prepared you are for the future. It’s a good measure of your overall financial stability because it includes cash, investments and property, as well as debts like loans, mortgages and credit card balances.
The most recent data from the Federal Reserve gives us a good idea of how Americans are doing financially. Using this information, we can help you see where you’re at compared to other Americans, and we’ll also provide some tips for how to grow your net worth based on your demographics and circumstances.
Or you can jump to our infographic to learn how to calculate your net worth, as well as some key statistics.
Or you can jump to our infographic to learn how to calculate your net worth, as well as some key statistics.
Key takeaways
- The highest average American net worth belongs to those aged 65 to 74 at $1,794,600.
- Americans 55 to 64 years old have the second-highest average net worth at $1,566,900.
- Couples with no children have the highest average net worth among family structures at $1,867,480.
- Those who buy a home hold a higher average net worth than renters, at $1,530,900.
Table of contents:
- What is the average American’s net worth?
- Average American net worth by age group
- Average net worth by top percentile and age
- Average net worth by education
- Average net worth by family structure
- Average net worth by housing status
- Average net worth by race or ethnicity
- Why your net worth matters
- How is net worth calculated?
- How to increase your net worth
What is the average American’s net worth?
The average American’s net worth as of 2022 is $1,063,700 when looking at the mean for U.S. households.
Averages, listed as the “mean” in the Federal Reserve report, can be skewed when certain individuals have a much higher or lower net worth. You’ll find the median value in the tables below, which is closer to the net worth of the typical household. The overall median for households in the U.S. is $192,900.
Average American net worth by age group
In general, as Americans age, their net worth increases. Over time, people are able to command higher salaries and purchase property—meanwhile, their investments and retirement accounts continue to grow.
The one caveat is for individuals 75 years and older. This is due to individuals no longer working and spending their retirement savings later in life.
| Age group | Median net worth (2022) | Average net worth (2022) |
|---|---|---|
| Under 35 years old | $39,000 | $183,500 |
| 35-44 years old | $135,600 | $549,600 |
| 45-54 years old | $247,200 | $975,800 |
| 55-64 years old | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75 years or older | $335,600 | $1,624,100 |
Average net worth by top percentile and age
The top one percent of net worth are some of the outliers. Here’s what the top one percent is making by age, according to DQYDJ’s 2023 report:
| Age | Top 1% net worth | Age | Top 1% net worth |
|---|---|---|---|
| 18-24 | $653,224 | 55-59 | $15,371,684 |
| 25-29 | $2,121,910 | 60-64 | $17,869,960 |
| 30-34 | $2,636,882 | 65-69 | $22,102,660 |
| 35-39 | $4,741,320 | 70-74 | $18,761,580 |
| 40-44 | $7,835,420 | 75-79 | $19,868,894 |
| 45-49 | $8,701,500 | 80+ | $16,229,800 |
| 50-54 | $13,231,940 |
Average net worth by education
While higher education can be costly in the short term, the results are noticeable for Americans who obtain college degrees. At every additional stage of education, both average and median net worth increase for American households. One concern Americans have is taking on student loan debt, but picking the right major can help you pay off your debt while increasing your net worth.
| Education | Median net worth (2022) | Average net worth (2022) |
|---|---|---|
| No high school diploma | $38,100 | $175,600 |
| High school diploma | $106,800 | $413,300 |
| Some college | $136,500 | $541,100 |
| College degree | $464,600 | $2,003,400 |
The difference between college graduates and those who did not finish high school is stark: the median net worth for those with a college degree is over 11 times higher than the median net worth of those without a high school diploma.
Average net worth by family structure
The family structure statistics for net worth show a positive effect for couples, likely due to their ability to share expenses, savings and investments. Even couples who have to provide for dependents have a higher average net worth than single people with no children.
| Family structure | Median net worth (2022) | Average net worth (2022) |
|---|---|---|
| Single (less than 55 years old), no child | $20,690 | $198,970 |
| Single with child(ren) | $50,750 | $274,130 |
| Single (55 years or older), no child | $162,920 | $721,820 |
| Couple with child(ren) | $250,620 | $1,159,730 |
| Couple, no child | $398,960 | $1,867,480 |
That said, the group with the highest average net worth is couples without children, who have an average net worth many times as large as that of single people without children.
Average net worth by housing status
Those who buy a house have a much higher average net worth, as the value of a house contributes significantly to a person’s net worth.
| Housing status | Median net worth (2022) | Average net worth (2022) |
|---|---|---|
| Renter or other | $10,400 | $154,900 |
| Homeowner | $396,200 | $1,530,900 |
Many people see buying a home as an investment, and these numbers show why. Being a homeowner makes a person’s net worth increase by over 1,000 percent.
Average net worth by race or ethnicity
The United States strives for equality, but the average net worth by race or ethnicity data shows that there is still a lot of work to do. The average net worth of white Americans is almost six times higher than that of Hispanic or Latino Americans and seven times higher than that of African Americans.
| Race or ethnicity | Median net worth (2022) | Average net worth (2022) |
|---|---|---|
| White, non-Hispanic | $285,000 | $1,367,200 |
| Black or African American, non-Hispanic | $44,900 | $211,500 |
| Hispanic or Latino | $61,600 | $227,500 |
| Asian | $536,000 | $1,826,900 |
| Other or multiple races | $132,900 | $849,800 |
Why your net worth matters
Your net worth is a good way to see how you’re doing financially in the present as well as how well you’re prepared for the future. An individual’s net worth includes savings and retirement funds, like a 401(k), as well as any investments like stocks or bonds that you own. When you have a higher net worth, you’ll be able to retire comfortably, and if you’re a parent, you’ll be more able to leave your children with some of your assets.
How is net worth calculated?
In short, your net worth is what you own minus what you owe. You’ll typically hear people say your assets (what you own) minus your liabilities (what you owe).
Assets include money in your bank accounts or investments, as well as the value of your property, like a home or a car. Your liabilities may include credit card balances, loans or a mortgage. You have a positive net worth if you have more assets than debts, and you have a negative net worth if your debts outnumber your assets.
Based on your net worth, you can also determine your social class, including whether you fall within the middle class.
How to increase your net worth
There are various ways to increase your net worth, like improving your financial literacy. Many Americans say they didn’t receive generational education about credit and other aspects of financial literacy, so learning about building credit, saving and investing can help set you up for success financially.
Here, we’ve broken down some other ways to increase your net worth by age group. There are different strategies that benefit individuals at different times in their lives, so we’ve included tailored tips by age below.
20 to 30 years old:
- Start saving and investing.
- Use an early retirement calculator to start planning.
- Know what affects your credit score and begin improving it.
30 to 40 years old:
- Manage your spending habits.
- Continue working on your credit.
- Plan for big events like marriage, children and buying a home.
40 to 50 years old:
- Plan on buying a home if you didn’t in your 30s.
- Beware of “lifestyle creep,” which is when you gradually spend more without realizing it.
- Automate your savings and investing.
50 to 70 years old:
- Begin more seriously preparing for retirement.
70 and older:
- Once you’re retired, you can worry less about growing your net worth.
- Set up a monthly schedule for withdrawing from your retirement fund for living expenses and enjoying your retirement.
What many people don’t realize is that poor credit can make improving a person’s net worth and overall financial health a lot more difficult. Bad credit costs you money that you could be saving or investing because you’re paying higher interest rates, fees and down payments. Sometimes, poor credit happens due to mistakes that you made when you were younger, but it can also be due to incorrect or unfair items on your credit report.
Whether you need help rebuilding your credit or challenging credit report errors, Lexington Law Firm is here for you. We can work with you to challenge inaccuracies, and we also offer other financial tools that may benefit you. To learn more about how we can help, get your free credit assessment today.
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