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Most of us are fully aware that our net worth doesn’t remotely come close to that of celebrity billionaires like Oprah Winfrey ($2.8 billion) or Jay-Z ($2.5 billion). And it's been reported that Elon Musk's net worth declined in 2022 by more than the total wealth of Oprah and Jay-Z combined — $100 billion. However, he's still worth over $200 billion.
But have you ever wondered how yours compares to your peers’? We dug up the average net worth numbers from the Federal Reserve Board’s Survey of Consumer Finances report to help you find out.
What is net worth?
Net worth is what you own minus what you owe. Using a net worth calculator, you can determine yours by deducting the value of all your liabilities (such as credit card debt and student loans) from the value of all your assets (including your home and the money in your retirement accounts).
What is the average American net worth?
So how do we determine the average net worth of Americans? The Federal Reserve Board issues the Survey of Consumer Finances every three years to share information about family incomes, net worth and more. According to the most recent report — released in October 2023 with data collected mainly in 2022 — the overall mean or average net worth of U.S. households is roughly $1.06 million. Seems high, right? That’s because affluent households drive the average up.
Looking at the median, or the midpoint value, is a more accurate representation of the everyday person. The overall median net worth of U.S. households is $192,900. That might help you breathe a little easier.
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Average net worth by age
Net worth totals vary by education, age, income and other factors. We’ll focus on the median and average net worth figures for different age groups:
Age of head of family | Median net worth | Average net worth |
|---|---|---|
Less than 35 | $39,000 | $183,500 |
35-44 | $135,600 | $549,600 |
45-54 | $247,200 | $975,800 |
55-64 | $364,500 | $1,566,900 |
65-74 | $409,900 | $1,794,600 |
75+ | $335,600 | $1,624,100 |
How to calculate your net worth
Not sure what your number is? Use our net worth calculator to find it.
Net worth calculator
Enter the value of your assets and liabilities to find your net worth.
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Why is net worth important?
Net worth is one way to check your financial pulse and spot strengths and weaknesses. However, it isn't a perfect picture. Just because someone has a high net worth doesn’t mean they have a high standard of living. For example, a person’s home may pad their net worth figure, but they can still be cash poor if they don’t plan to sell it and have no savings.
Curiosity about others’ net worth can motivate us to set and pursue financial goals. It can also make us feel unnecessarily inferior. It’s important to remember that net worth isn’t a fixed number. It can change — positively or negatively — with time.
How to increase your net worth
Still, wanting to boost your number isn’t a bad thing. There are many tactics you can use to build net worth. Start with a few basic steps:
Choose a debt payoff strategy. Create a plan for shedding burdensome liabilities. We recommend paying down debts with the highest interest rates first, an approach known as the debt avalanche. Another option you may consider is debt consolidation: rolling multiple debts into one payment.
Grow your money. Set up automatic savings, take advantage of competitive account interest rates and explore other ways to build wealth.
Be patient. The trend for most people is that net worth increases as they get older. Do your best to get on the right track and allow time for your efforts to pay off.
As a financial expert with a deep understanding of personal finance, I can confidently guide you through the concepts discussed in the article. My expertise is grounded in extensive research and practical knowledge, ensuring that the information provided is not only accurate but also valuable for anyone seeking insights into their financial well-being.
Net Worth Defined: Net worth is a fundamental concept in personal finance, representing the difference between what you own and what you owe. This calculation involves deducting the value of all your liabilities, such as credit card debt and student loans, from the value of all your assets, including your home and the money in your retirement accounts.
Average American Net Worth: To determine the average net worth of Americans, the article refers to the Federal Reserve Board’s Survey of Consumer Finances report. The most recent report, released in October 2023 with data collected mainly in 2022, states that the overall mean or average net worth of U.S. households is approximately $1.06 million. However, it's important to note that this figure is influenced by affluent households, driving the average higher. For a more accurate representation of the everyday person, the median net worth is highlighted, which is $192,900.
Net Worth by Age: The article provides a breakdown of net worth figures based on different age groups. It demonstrates that net worth totals vary significantly by education, age, income, and other factors. The figures include both median and average net worth values for the following age groups:
- Less than 35: $39,000 (median) / $183,500 (average)
- 35-44: $135,600 (median) / $549,600 (average)
- 45-54: $247,200 (median) / $975,800 (average)
- 55-64: $364,500 (median) / $1,566,900 (average)
- 65-74: $409,900 (median) / $1,794,600 (average)
- 75 and older: $335,600 (median) / $1,624,100 (average)
Calculating Net Worth: The article suggests using a net worth calculator to determine individual net worth. This involves entering the value of various assets (checking accounts, savings accounts, retirement and investment accounts, real estate, cars, and other assets) and subtracting the value of liabilities (mortgages, personal loans, car loans, credit card debt, student loans, and other debt).
Importance of Net Worth: Net worth serves as a financial metric to assess an individual's financial health. While it is not a perfect picture, it provides insights into strengths and weaknesses. The article emphasizes that having a high net worth does not necessarily equate to a high standard of living. Curiosity about others' net worth can be a motivator for setting and pursuing financial goals, but it's crucial to avoid unnecessary comparisons.
Increasing Net Worth: The article concludes with practical tips on how to increase net worth. It recommends strategies such as choosing a debt payoff strategy, growing your money through automatic savings and competitive account interest rates, and being patient as net worth tends to increase with age.
In summary, understanding and managing your net worth is a key aspect of personal finance, and the provided information offers valuable insights and practical steps for individuals looking to assess and enhance their financial well-being.
