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The average net worth by age for Americans is $76,340 for those under age 35, $437,770 for those ages 35 to 44, $833,790 for those ages 45 to 54, $1,176,520 for those ages 55 to 64, $1,215,920 for those ages 65 to 74 and $958,450 for those age 75 and above. For all Americans, the average net worth is $746,820, but this is skewed by a select group of very wealthy individuals. The median net worth for all Americans is $121,760.
Net worth is a good measure of overall financial stability, since it takes into account cash, investments and property, as well as debts, like loans, mortgages and credit card balances. When looking at the entire American population, we can get a sense of how the average American is doing by evaluating net worth.
We looked at the most recently available data from the Federal Reserve, which is the central bank of the United States, to get a sense of the average net worth of Americans by age, education, family structure and housing status. Here are a few of our key findings:
- Older Americans generally have a higher net worth: As people age, their net worth tends to increase (an average of $76,340 for those under 35 to an average of $1,215,920 for those approaching retirement).
- A college degree pays off in terms of net worth: Those with college degrees have an average net worth ($1,516,910) nearly five times higher than those who graduated high school ($304,590).
- Homeownership is correlated with higher net worth: Homeowners have an average net worth ($1,099,070) that is more than 10 times higher than those who don’t own homes ($95,560).
Read on to see more detailed statistics as well as an explanation of how to calculate and improve your own net worth, or jump straight to our infographic.
Household net worth statistics
According to the latest data available from the Federal Reserve, the average American household net worth is $746,820. Because this number includes very wealthy individuals, it does not give an accurate representation of the typical American’s net worth. Instead, we can look at the median net worth for American households, which is currently $121,760.
That said, net worth varies greatly according to a variety of factors, including age, education, family structure and housing status. Below, we provide both the average and median net worth statistics for a variety of different groups of Americans.
Net worth by age
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.
| Age group | Median net worth | Average net worth |
|---|---|---|
| Under 35 years old | $14,000 | $76,340 |
| 35–44 years old | $91,110 | $437,770 |
| 45–54 years old | $168,800 | $833,790 |
| 55–64 years old | $213,150 | $1,176,520 |
| 65–74 | $266,070 | $1,215,920 |
| 75 years or older | $254,900 | $958,450 |
The only exception to this general trend is among those 75 years or older, who are likely no longer working.
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.
| Education | Median net worth | Average net worth |
|---|---|---|
| No high school diploma | $20,780 | $137,580 |
| High school diploma | $73,890 | $304,590 |
| Some college | $89,280 | $374,010 |
| College degree | $308,800 | $1,516,910 |
The difference between college graduates and those who did not finish high school is most stark: The median net worth for those with a degree is 15 times higher than the median net worth of those without a diploma.
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 some expenses. 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 | Average net worth |
|---|---|---|
| Single (less than 55 years old), no child | $15,700 | $131,760 |
| Single with child(ren) | $36,710 | $284,620 |
| Single (55 years or older), no child | $119,500 | $444,900 |
| Couple with child(ren) | $166,300 | $879,210 |
| Couple, no child | $251,700 | $1,314,550 |
That said, the group with the highest average net worth is couples without children, who have an average net worth more than twice as large as single people without children.
Net worth by housing status
Those who are able to purchase homes have a much higher average net worth, since the value of a house contributes significantly to a person’s net worth.
| Housing status | Median net worth | Average net worth |
|---|---|---|
| Renter or other | $6,270 | $95,560 |
| Homeowner | $254,900 | $1,099,070 |
While we could be quick to draw the conclusion that everyone should try to buy property, we have to be careful not to confuse cause and effect. Although a person’s net worth may increase by purchasing a home, it’s also likely that the people who are able to buy homes are those who already have higher-than-average net worths.
How is net worth calculated?
Net worth is calculated by adding up all of your assets and subtracting all of your debts, also called liabilities.
Assets include money in your bank accounts or investments, as well as the value of your property, like a home or a car. Your debts may include credit card balances, loans or a mortgage. You have a positive net worth if you have more assets than debts, or you have a negative net worth if your debts outnumber your assets.
When calculating net worth, the question boils down to how much you own and how much you owe.
The average net worth of American households is calculated by adding up everyone’s assets, subtracting everyone’s debts and then dividing by the total number of households. When people talk about social class, they’re often referring to accumulated wealth, or net worth.
However, the average net worth is often skewed by a few very wealthy individuals. For instance, imagine a group of 100 people where everyone has a net worth of $1,000 except for one individual who has a net worth of $10 million. The average net worth of the group is over $100,000, but that doesn’t give a very clear idea of how the average person is actually doing.
Instead, many people use the median net worth to get a sense of the net worth of typical Americans. If you line up every American’s net worth from lowest to highest, the median will be the number in the middle of the list.
After looking at the statistics above, you may be comparing yourself to your peer group and wondering how to build your own net worth. We have some general guidelines to keep in mind as you work to increase your wealth.
How to build net worth
Fortunately, building net worth is a fairly straightforward process—but just because it’s simple doesn’t mean it’s easy. Try to stick to a few basic rules over the course of your career to work toward a net worth that will help support you in retirement.
- Aim to increase your income over time. While most of us start at modest wages and salaries, we can work to increase our skills over time, making us more desirable as employees. A higher income gives you more flexibility to save and invest, increasing your net worth.
- Save as much as possible. Many of us underestimate the effect of saving over the course of our lives. If you make $50,000 annually and save just 10 percent in a retirement account, you’ll have more than $1 million after 40 years with average investment returns.
- Pay off your debts. Paying off debt has a powerful effect on your net worth, since your assets can continue to grow as your debts decrease. If you pay down your mortgage as the value of your home increases, your net worth is increasing in two ways.
- Be mindful of spending. Throughout your life and especially after receiving a raise, be careful about where your money is going. Small purchases like lunch at a local restaurant or that streaming service you never use can add up to hundreds or thousands of dollars per year.
In order to keep an eye on your net worth, you’ll want to make sure to regularly check your credit report to understand how debt is affecting your overall wealth. As part of your thorough check, be sure to look out for any inaccurate information, which could bring down your credit score. A lower credit score could make it difficult to secure a mortgage—and purchasing a home is highly correlated with a greater net worth over time.
If you do notice inaccurate information on your credit report, it may be helpful to contact a credit repair consultant, who can help you start the process of filing a dispute with the credit bureaus. Ultimately, having a fair and accurate credit report is an important part of financial health—and it will help you work toward your net worth goals.
Infographic
