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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 considers assets, like cash, investments and property, as well as debts, like loans, mortgages and credit card balances.
Recent data from the Federal Reserve gives us a good idea of how Americans are doing financially. This information can help you see how you compare to other Americans. 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 facts about net worth, the wealth gap, and some key statistics.
Table of contents:
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.
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 |
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 |
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.
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 must 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.
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.
Like net worth, retirement account ownership can expose some potential inequalities in the U.S.
Data from the U.S. Census Bureau data reveals that Black Americans own retirement accounts by almost 20 fewer percentage points than White Americans — and the gap is even bigger for Hispanic 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 |
Ideally, by the time you retire, these investments will have grown to a point where you have enough money to have a comfortable retirement. They steadily grow your wealth by investing your contributions into stocks or bonds.
A common retirement account option is an individual retirement account (IRA), which you can open with a stock brokerage. There are also 401(k) accounts, which go through your employer.
A 401(k) plan is a popular tax-advantaged employer retirement account that contributes to your overall net worth. This plan is popular with many workers because employers will typically match a certain percentage of contributions.
The following data comes from the Fidelity Building Financial Futures report and shows the average 401(k) balance by generation.
| Generation | Average balance |
|---|---|
| Baby Boomers (1946 – 1964) | $249,300 |
| Gen X (1965 – 1980) | $192,300 |
| Millennials (1981 – 1996) | $67,300 |
| Gen Z (1997 – 2012) | $13,500 |
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.
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.
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.
Begin to more seriously plan for retirement by saving and investing. A retirement calculator is a great place to start because it gives you an idea of how much you need to save to reach your retirement goals. You should also learn what affects your credit score and what you need to do to improve it so you have a solid financial foundation.
At this point, many people are beginning to make larger financial decisions and start their families. This is the time to really manage your spending habits and start planning for big events like marriage, children and buying a home.
During this time, you should continue working on your credit because it can help you buy a better home and vehicle and fund major events, like a wedding.
Some people don’t buy a home in their 30s, but they can be a great investment. If possible, have enough to buy a home by this time so you can sell it later or pass it on to your children to give them a head start. This is also when it’s time to beware of “lifestyle creep,” meaning you’re gradually spending more without realizing it due to your increased income.
Once you reach 50, it’s time to start seriously preparing for retirement. Look over your retirement account numbers and see if you’re on track to meet your goals. The amount of money you’ll need to retire is different for everyone.
Ideally, you’ll have enough to accommodate your lifestyle and other activities you’d like to do in retirement, like travel. If you’re not on track, start saving more aggressively.
Now that you’ve retired, you can worry less about growing your net worth. You’ve spent your life being financially savvy, and now it’s time to enjoy your golden years. To simplify things, you can set up a monthly withdrawal schedule from your retirement fund that can cover your living expenses and activities.
Debt significantly impacts net worth because net worth is assets minus liabilities. Recent reports show the average consumer debt among Americans was nearly $17 trillion by the end of 2022.
The U.S. Census Bureau also calculated the median debt for Americans, which includes both secured debts, like mortgage and auto loans, and unsecured debts, like student loans and medical debt.
| Age | Median value of debt |
|---|---|
| Less than 35 years | $52,200 |
| 35 to 44 years | $121,400 |
| 45 to 54 years | $100,500 |
| 55 to 64 years | $70,000 |
| 65 to 69 years | $40,000 |
| 70 to 74 years | $35,000 |
| 75 and over | $17,000 |
As people enter their 30s and 40s, they accumulate more debt because this is when many start growing a family and buying homes. As people age, they often have less debt because they’ve paid it down over the years.
Many people don’t realize bad credit costs you money and can make it difficult to grow your net worth. A poor credit score is often due to outstanding debts, meaning you have less to save and invest because you’re paying back loans. Improving your credit score increases your overall financial well-being.
If you’re unsure of your credit score, allow Lexington Law Firm to help. Sign up to get your free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
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