Have you ever wondered how are your finances? You are not alone. We often think about our financial situation compared to others – although few of us like to admit it. Having an idea of your financial health can be motivating, especially when it’s not about competition but about setting realistic goals.
Don’t miss:
What is net worth, really?
Before diving into the numbers, it’s important to clarify what “net worth” means. Simply put, it’s what you own (assets) minus what you owe (liabilities). Assets include things like your home, car, investments, and savings. Liabilities include things like mortgages, credit card debt, and student loans. Think of net worth as a quick snapshot of your financial health. It’s a broader view than just income, revealing how much you’ve kept.
See also: Can you guess how many people retire with a $5,000,000 nest egg? – How does this compare to the average?
Net worth by income level
According to the latest data from the Federal Reserve, here’s how net worth varies across different income brackets:
-
Less than $34,600: median net worth $14,000, average $129,700
-
$34,600 to $59,499: median $71,000, average $218,700
-
$59,500 – $91,899: median $159,300, average $385,400
-
$91,900 – $153,099: median $307,200, average $636,800
-
$153,100 – $245,399: median $747,000, average $1,264,700
-
$245,400 and more: median of $2,556,200, average of $6,629,600
In the United States, high-income households generally have significantly higher net worth than low-income households. According to the Pew Research Center, the median net worth of high-income households is approximately 7.3 times higher than that of middle-income households, and 75 times that of households with the lowest incomes.
Trend: Studies show that 50% of consumers think financial advisors cost much more than they do. To demystify this, this company offers free connection and a free first call with the corresponding advisor.
What you can learn from data
There are a few points to remember:
Median and average: The median net worth of American households is $192,700, while the average is around $1.06 million. This gap highlights how wealthy individuals skew the overall average.
Age matters: Net worth tends to peak among people ages 65 to 74, with an average of about $1.78 million. Years of savings and investments add up.
