Understanding the Average American Net Worth: Insights and Analysis (2024)

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Written by Liz Knueven and Sophia Acevedo; edited by Sarah Silbert

Understanding the Average American Net Worth: Insights and Analysis (1)

  • What is net worth?
  • Average American net worth
  • Factors influencing net worth
  • How to grow your net worth
  • FAQs

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  • The average American family has a $1.063 million net worth, according to Federal Reserve data.
  • But the median net worth is $192,900.
  • Data shows that net worth varies across age, race, location, and education level.

The average net worth of American families is over $1.063 million, according to the most recent data from the Federal Reserve's 2022 Survey of Consumer Finances. The Federal Reserve conducts the survey for calculating average American net worth every three years; the most recent report was released in October 2023.

Between 2019 and 2022, the average American family's net worth increased by 23%.

While the average net worth is upward of $1 million, the median net worth tells a very different story. Calculated this way, the typical American family has a net worth of $192,900. The median, or middle value in a set of numbers, is less sensitive to outliers, so may be a more accurate representation of a typical family. The median shows a very different reality for Americans, and we've included both numbers in this look at American families' finances.

What is net worth?

Net worth: Definition and importance

Net worth is the total value of assets you own, minus any liabilities or debts.

In this study, the Federal Reserveincluded several categories of assets, including:

  • Bank accounts, including checking, savings, money market accounts, cash accounts at brokerages, prepaid debit cards, and call accounts
  • CDs, government bonds, and savings bonds
  • Health savings accounts
  • Investment accounts including 529 college savings plans and individual taxable investment accounts
  • Retirement accounts, including IRAs, 401(k)s and 403(b)s
  • Cash value life insurance policies and annuities with equity
  • Vehicles including cars, RVs, motorcycles, boats, and helicopters
  • Real estate, including residential homes

In calculating net worth, liabilities or debts are subtracted from the value of assets amount. In this survey, debts included:

  • Mortgages
  • Home equity lines of credit or home equity loans
  • Credit card balances
  • Installment loans, including auto loans and student loans

How to calculate your net worth

To calculate your net worth, follow these three steps:

  1. Determine the total all your liquid assets, like cash and savings, as well as illiquid assets, or money that can't be as easily converted to cash, like land or a vehicle.
  2. Determine the total of your liabilities, including debt and outstanding payments, like student loans and medical bills.
  3. Subtract your total liabilities from your total assets.

The resulting figure is your net worth.

Average American net worth

Average net worth by age

The impact of age on net worth is notable. People tend to build up worth in some assets with time. Retirement savings, for instance, grow through compound interest, where interest earns more interest on itself. Home equity, or the value of your home minus any mortgage debt, also tends to increase with time.

Here's the typical American's net worth by age, according to Federal Reserve data:

AgeAverage net worthMedian net worth
Under age 35$183,500$39,000
35 to 44$549,600$135,600
45 to 54$975,800$247,200
55 to 64$1,566,900$364,500
65 to 74$1,794,600$409,900
75 or older$1,624,100$335,600

Average net worth by education level

As the head of household's level of education increases, the average net worth increases as well. The average college graduate has a net worth more than 11 times that of the typical American without a high school diploma, and about four times greater than someone who didn't finish college.

Here's how educational achievements play into Americans' average and median net worth:

Highest education achievedAverage net worthMedian net worth
No high school diploma$175,600$38,100
High school diploma$413,300$106,800
Some college$541,100$136,500
College degree$2,003,400$464,600

Average net worth by location

Where you live tends to play a major role in your net worth. While costs of living in America's cities tend to be higher than the costs outside of them, the typical American living in a city tends to have a higher net worth than people living in rural areas.

LocationAverage net worthChange in average net worth compared to 2019 dataMedian net worth
People living in urban areas$1,133,10021% increase$199,200
People living in rural areas$652,10073% increase$146,400

Average data shows that the typical American in an urban area has over 1.7 times the net worth of a rural American. In part, higher real estate values in cities could contribute to urban America's higher net worth.

Data from the same Federal Reserve study indicates that families living in urban areas saw incomes increase 21% on average between 2019 and 2022, while Americans outside of urban areas saw a 73% increase during the same time period.

Average net worth by race

The racial wealth gap is apparent in America's average net worth. The average Black family still has a net much smaller than the average white family, based on the most recent 2022 data.

Here's how the average net worth changes by race in America:

RaceAverage net worthMedian net worthAverage net worth change compared to 2019
White, non-Hispanic$1,367,200$285,00020%
Black$211,500$44,90028%
Latino$227,500$61,60019%
Multi-racial and other identities$849,800$132,90012%

Average net worth by homeownership status

According to data from the Federal Reserve, the average homeowner has a net worth of over 9.8 times the net worth of the typical person who doesn't own a home.

Homeownership statusAverage net worthMedian net worth
Owns a home$1,530,900$396,200
Doesn't own a home$154,900$10,400

Factors influencing net worth

Income levels

A household's income can significantly influence people's net worth. According to Pew Research, the typical upper-income household has a net worth that's 33 times higher than the typical lower-income household.

This doesn't necessarily mean that someone with a high salary will always have a higher net worth than someone with a lower salary, though. Net worth depends on how you use your money to accumulate assets and manage liabilities. Someone with a lower salary can still grow their net worth effectively by managing their expenses and contributing regularly to their savings and investments.

Savings and investment choices

Savings and investing over time can also affect your net worth. Net worth factors in the balance of your savings and investment accounts. It also includes the value of significant purchases you've made, like expensive jewelry, clothes, and furniture.

Real estate, in particular, is a big factor in net worth. Even with a mortgage, owning a home can still contribute to net worth. Federal Reserve data also shows that homeowners have a higher net worth than those who don't own a home.

Debt and liabilities

You need to subtract debt and liabilities from assets to determine your net worth. If you have significant debt, you could end up with a negative net worth if you're liabilities exceed your assets.

Managing your debt and liabilities can ensure you maintain a positive net worth.

How to grow your net worth

The best way to build wealth is to play the long game: Decide on your goals now, and start working toward them with small steps along the way. Here are three places to start:

Maximize your retirement savings

Whether you save and invest for retirement through your office's 401(k) or have a solo 401(k) if you're self-employed, starting to save for retirement is one of the most important ways to build your net worth.

There are numerous investment strategies for enhancing personal net worth. If you qualify based on income, a Roth IRA could help you save beyond your 401(k) plan and let money grow tax-free. A traditional IRA is available to almost anyone at any income level, and can help you lower your tax bill now instead of later.

Start investing now

Whether you want to start building wealth through an investment app or just want to invest automatically without too much management, investing for the long term is another way to grow your net worth.

Opening a brokerage account is the first place to start. There are different types of brokerage accounts to fit your goal, some more specific than others. If your goal is to pay for your child's college someday, opening a 529 plan might be the right fit for your investing. For people who have already hit the maximum limits on retirement investment accounts, putting your investments into an individual brokerage account might be right for you.

Get smart with your savings

Attaining big assets, like real estate, that build your net worth usually involves saving some cash up front. Whether you want to save for the down payment on a house, or build an emergency fund, having the right savings account is critical.

If your savings account is earning .01% interest, it's time to open one of the best high-yield savings accounts to help your money earn more. A high-yield savings account could help you earn multiple times more interest each month, and help you reach your goals quicker.

Net worth FAQs

What exactly is net worth?

Net worth is used as a way to measure your financial stability. It tells you your wealth by adding all your assets, then subtracting any debt and liabilities.

How can I calculate my net worth?

First, add all your assets. That includes money in the bank, investment accounts, and physical things of value, like a house or a car. After that, you'll calculate your debt and liabilities — anything from student loans to credit card debt. Lastly, you'll subtract your total debt and liabilities from your assets.

What is the average net worth in America?

The average net worth in America is $1.063 million, according to data from the Federal Reserve. Median data is less likely to reflect outliers, however, and may show a more accurate depiction of the typical American family. The median net worth in America is $192,900, according to data from the Federal Reserve.

Why does net worth vary significantly by age?

Net worth varies by age because people tend to accumulate more assets over time. For example, if you bought a house with a mortgage, you'll pay it off over time, so your home equity will increase.

How can I improve my net worth?

To improve your net worth, maximize your retirement savings, start investing, and obtain assets.

Liz Knueven

Personal Finance Reporter

Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

  • Bank accounts
  • Savings and CD rate trends
  • Budgeting
  • Saving
  • How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Understanding the Average American Net Worth: Insights and Analysis (2024)

FAQs

Understanding the Average American Net Worth: Insights and Analysis? ›

The average net worth in America is $1.063 million, according to data from the Federal Reserve. Median data is less likely to reflect outliers, however, and may show a more accurate depiction of the typical American family. The median net worth in America is $192,900, according to data from the Federal Reserve.

What is the average net worth of an American citizen? ›

Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.

What is top 5% wealth net worth in the US? ›

The most recent data from the Fed's Survey of Consumer Finances comes from the end of 2022. If you wanted to be in the top 5% of households at that point, you would need a net worth of $3,795,000. As you might expect, though, you don't need as much to reach the top 5% of younger households.

How many people have $3000000 in savings in the USA? ›

There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.

What percentage of Americans have a net worth of over $1,000,000? ›

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

What net worth is considered upper class? ›

The upper class has an average net worth of $793,120 to $2.65 million, while the lower class has $16,900. The middle class ranges from $58,550 to $300,800. You can grow your net worth by saving and investing consistently, investing in the stock market, and being careful about taking on debt.

What net worth is considered wealthy? ›

Upper-Middle Class (Next 20%): The median net worth is $201,800. This group often enjoys more discretionary income and benefits from long-term investments. Wealthy (Top 20%): The median net worth is $608,900. This group often represents older individuals who have accumulated significant savings and investments.

Does net worth include home? ›

Key Takeaways. Net worth is a measure of what you own minus what you owe. It's calculated by subtracting all of your liabilities from all of your assets. In addition to your home, key assets include investments, automobiles, collectibles, and jewelry.

Is a 401k included in net worth? ›

Market value of your investment accounts: Balances of your brokerage accounts. Your 401(k) and IRA should be included in your net worth calculation.

At what age should your net worth be 1 million? ›

Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many 50-somethings become millionaires? Household wealth swelled at a record pace during the pandemic.

How many people have $1,000,000 in savings? ›

While many people may aim for that goal, most don't reach it. Employee Benefit Research Institute (EBRI) data estimates that just 3.2% of Americans have $1 million or more in their retirement accounts.

Is $2 million a multi-millionaire? ›

Still commonly used is multimillionaire, which refers to individuals with net assets of 2 million or more of a currency.

What is the average age of a millionaire? ›

The average millionaire in the United States is actually 61 years old. Back in 1992, the average millionaire was 57, according to Business Insider. This suggests that for most, the path to significant wealth is a marathon, not a sprint. Now, that's not to say young millionaires don't exist.

What net worth is considered wealthy in the US? ›

In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.

How much money does an average US citizen have? ›

Data from the Federal Reserve shows the average American family has $62,410 in transaction accounts. Factors like age or education level may impact the amount the typical American actually has saved. The average American savings balance may also depend on household size and homeownership status.

How many US citizens are worth $100 million dollars? ›

The U.S. is now home to 37% of the world's millionaires, up from 35% in 2018. The divergence grows even more at the top of the wealth ladder. The U.S. has 9,850 centi-millionaires — those worth $100 million or more — compared with China's 2,352. The U.S. has about 788 billionaires to China's 305.

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