Average Net Worth By Age For Americans

Typically, net worth is the total value of all your assets, deciding what you own and what you owe. We will guide you here about the average net worth by age, which will make you grow your savings over time.

A financial metric showing the amount that comes after deducting the liabilities in your assets while helping to keep your finances in perspective. Net worth widely depends on salary (income) and age. Still, there could be a difference between the realistic income figure and unreal expectations in this world of inflation. The economy has been uncertain recently, so one must focus on contribution amounts.

To enhance your financial health, one must be aware of their net worth, which will help them to create a balance in their spending, saving and investing habits that will help you establish a more stable future.

What is a net worth?

Net worth will make you understand your finances differently, as it would be an amount you own minus what you owe. Knowing about overall net worth will teach you how to save money and use it to pay your debts, grow your wealth, and secure your future.

In other words, net worth is an accurate measurement of America’s finances that will determine their financial status by calculating your assets, everything you own, and the liabilities in terms of debts.

Your assets usually include cash, bank accounts, bank investments, equity of your home, valuable jewels, automobiles, insurance policies, personal property and other expensive holdings like antiques. In comparison, liabilities include mortgages, student loans, automobile loans, bank loans, personal loans, credit cards and other debts such as payments you owe to somebody else, whether business or any person.

If we talk about the average net worth by age, then dividing the net amount by the number of households could be one individual or a large number of people. Net worth usually increases over time and decreases in debts as income increases. Eventually, the difference between your assets and liabilities (including debts) is your net worth.

To know about your net worth, add up all the value of the assets you own and then subtract the value of creditors (that will exclude all the money you owe); the difference would be the net worth.

In the same way, we can get the overall net worth of the U.S. population by knowing the net worth of the entire population of America by adding up the value of assets of every household and then subtracting the total amount those households owe their creditors. This obtained amount would be the total net worth of the American population.

Usually, older Americans have a more significant number of wealthy people while holding more net worth than young Americans. So the young people who are degree holders have more net worth than the youngsters with no degree.

If we see in terms of race, then White Americans have eight times higher net worth than black Americans. Even maintain five times higher net worth than Hispanic Americans.

Is salaried income considered an asset?

The salaried income we do not consider an asset, as ample of it goes into spending over liabilities. Moreover, in salaries, we usually have significantly less to take home, but most of the portion goes into retirement accounts. So for a salaried person, the asset from the income could be retirement accounts and other savings.

55% of Americans working and getting salaries feel behind in their retirement savings. Whereas 16% of working Americans contributed less in the year 2022 to their retirement than in 2021. And 24% of the American adults who contributed less or the same in 2022 as compared to 2021 complained about reducing or sustaining the same amount of income.

What is the difference between positive and negative net worth?

A positive or negative net worth depends on whether the present value of the assets outweighs the liabilities. Everyone wants a positive net worth where assets are higher than liabilities, like if they have more income and savings than any debt and liability and make their future secure.

In comparison, a negative net-worth could be more liabilities than your income and put you in debt most of the time. One can assess their financial future by combining the value of assets and liabilities and take decisions accordingly to choose the right direction.

Maiden net worth trends in the United States

According to the Federal Reserve, for Americans, both their maiden and net worth increased in 2016 and 2019. These calculations are optimistic as previously, between 2007 to 2010, there was a great recession. After that recession, 18 percent of net worth increased, and eventually, in 2019, there was a maiden net worth of $121,760.

Average net worth in the United States by age

In 2019, the maiden net worth of Americans under 35 was $14,000. In comparison, Americans between 65 and 74 years old have 19% higher maiden worth, with a figure of $266,070.

The Americans with a college degree had a maiden worth of $308,800 and the people with a high school diploma had a figure of $73,890. The maiden net worth of White Americans was $189,100, whereas Black Americans had $24,100, and Hispanic Americans maintained a net-worth of $36,050.

Remember that the Federal Reserve Survey of Consumer Finances was held after three years, and we have provided you with the latest one held in 2019; the information was published in 2020. And we are expecting further information to be published in 2023.

What would be the average net worth by age 25?

Your age affects your net worth very much. People usually build assets with time through savings and then compound interest. According to CNN Money’s details, the average net-worth for a 25-year-old usually is $9,000.

We can understand this lower amount is due to student loans and credit card debt. Recently, this ratio was so devastating that youth could not get any right jobs after the pandemic outbreak.

During this pandemic, young adults usually stayed home with their parents. But we hope the situation will improve as recovering stocks and real estate are also boosting, and tech-related fields are also flourishing.

People can enhance their average net worth by the age of 25 by following a few simple steps:

  • Believing in themselves and focusing on ethics, getting good grades in college, and getting degrees.
  • Control their spending by stopping irrational spending.
  • Saves for the future and keeps hard times in mind.
  • Learn from the wrongdoings and take responsibility for their actions.
  • Staying innovative and leveraging free tools while minimizing investment fees, managing their budget, and dealing with finances.
  • Utilize tech trends to optimize wealth and then grow it positively.
  • Take criticism in a positive way rather than getting sensitive to constructive stuff. Controlling emotions does not have any negative impact while keeping improving.
  • Keeping their mind open towards new ideas and options.
  • Use healthier self-esteem that will lead to positive change.
  • Learn, learn and learn to empower yourself, focus on reading finance blogs and thoughtful books, attending education seminars and continuing your education.
  • Try to avoid student loans and dig deeper for suitable scholarships.
  • However, parents always want to help their kids and give them money even for investments, but being responsible young people, they must also help their parents by doing part-time jobs and their studies.
  • Being 25 can allow compounding that could be a greater force in investing.

Average net worth by educational level

When there is an increase in the education of the head of the household, there is an increase in net worth as well. An average college graduate in the United States usually maintains nine times more net-worth than a high school diploma holder and four times more than an individual who has not finished college yet.

But if we consider maiden net-worth, the individuals who have not finished college or just obtained a school diploma. Education level plays a vital role in American maiden and average net-worth:

Education achieved Average net worth Maiden net worth
No high school diploma $137,800 $20,500
High school diploma $305,200 $74,000
Not finished college $374,400 $88,800
College degree $1,159,900 $302,200

Average net worth by location

The place where you live plays a vital role in the average net worth of Americans. It is understood that living in city areas can cost you more instead of living in some rural areas. In America, the costs of living in cities are way higher than living outside of them; even some metropolitan areas make you spend more and more to meet the basic needs along with living.

According to the average data, the typical American in an urban area has a net-worth of 2.7 times compared to a rural American. Due to higher real estate value, job opportunities and income that even makes most Americans leave their native place for urban cities.

Specific data from the Federal Reserve Study indicated an increase in the income of 11% on average to the people living in urban areas from 2016 to 2019. On the other hand, Americans living outside the urban areas have never seen much increase or significant improvement.

Location Average net worth Change in average net worth from data in 2016 Maiden net worth
Urban areas $806,400 1% increase $126,000
Rural areas $324,800 11% increase $90,400

The average net worth of an American by race

There is a significant racial wealth gap if we talk about the average net worth of Americans. According to recent data, the average Black family has a lesser net worth than White American families.

Race Average net worth Maiden net worth
White / Non Hispanic $983,400 $188,200
Black $146,800 $24,100
Latino $203,300 $36,200
Multi racial $486,800 $74,500

Average net worth by age 20

By 20, young adults have yet to start contributing to retirement as they are out of a job and living with their parents. They have a lot of plans, like making their own home and many other things.

More than assets, they have liabilities in terms of student loans. They usually make ends meet with the help of their parent’s financial support or by doing some part-time jobs. But this is when they can get a good education and make wise choices regarding their job and investment plans.

What is the average net worth of a 50-year-old American?

According to CNN Money 2021, there are some following data regarding the average net-worth by age:

Age Average net worth
25-34 years $9,000
35-44 years $52,000
45-54 years $100,000
55-64 years $180,000
65 plus years $232,000

By 50, your average net worth should be four times your salary. For instance, if you are making $200,000, your average net worth must be $800,000. Usually, the average net-worth of those aged 45-54 years American would be $833, 200 and the maiden net-worth would be $168,600.

What is the net worth to be considered wealthy?

According to Schwab’s Modern Wealth Survey 2022, being considered rich as an American takes an average net-worth of $2.2 million. Remember that an average net worth is the sum of assets minus liabilities, including debts.

The percentage of Americans who hold a $1000000 net worth

8.8% of adults in America are millionaires, whereas 33% are women. With a one million dollar wealth, you could be among the top ten percent wealthiest in the United States. There are almost 62.5 million millionaires worldwide, and there will be an 11.4% increase from 2020.

Net worth in terms of assets

Net worth is the total value of your assets while deducting debts and liabilities. Federal Revenue includes several categories of assets, which are given below:

  • Bank Accounts (Checking, saving, money market accounts, cash accounts, prepaid debit cards, and call accounts).
  • Saving bonds or Government bonds.
  • Health saving accounts.
  • Investment accounts, including saving plans and individual tax accounts.
  • Retirement accounts.
  • Life insurance policies and annual equities.
  • Automobiles and other vehicles, including motorcycles, cars and helicopters.
  • Real estate, including holding property anywhere and residential homes as well.

Liabilities while calculating net worth

Liabilities and debts are deductible values from the assets to find the net-worth. They may include:

  • Mortgages
  • Home equity loans
  • Credit card bills
  • Installment loans
  • Automobile loans
  • Student loans for youth

How can one calculate net worth?

To determine your net worth, one much follow the given steps:

  • Calculate your liquidated assets, including cash and savings and non-liquidated vehicles and property that we can not easily convert into cash.
  • Then calculate your liabilities, including debts and outstanding payments, medical bills, credit card bills, or student loans.
  • The final step is subtracting the total liabilities from the total assets, and the resulting amount would be your total net worth.

How is knowing your net worth important?

Understanding your wealth and tangible assets will help your financial well-being and make you know how to control your liabilities. You will understand which areas you need to work on and enhance gradually.

Knowing your financial situation will help you to figure out how much money you need to meet your future goals and improve your financial situation. In addition, it will help you to understand the fundamentals of personal finance.

Nonetheless, knowing your net worth and several factors that drive assets up and down will help you evaluate your finances. And it will make you make some efforts to increase your finances and make stable assets without slowly depreciating them and accumulating liabilities.

Knowing the net-worth will serve some following essential purposes as well.

  • Evaluating your financial status will make you manage your monthly bills, decrease your liabilities and build long-term wealth. The value of your money will help you go in a positive direction over time and eliminate certain factors that hold you back.
  • It would be helpful for money-related choices while diagnosing financial problem areas. It could also bring warning signs if you spend more in one area or underinvest in some areas where you need to invest.
  • Additionally, it will make you realize which areas of financial mismanagement are enhancing your debts and liabilities. Knowing your finances will make you set some financial debt management and investment strategies to enhance your assets.
  • Knowing your financial situation will make you aware of your future goals. Or you will hit specific goals, whether about buying a home, starting some business or any plans for early retirement. It will help you to develop your financial habits, control your useless spending and achieve your goals while meeting an ideal timeline.

How can one grow their net worth?

Increasing your net-worth and wealth is a long-run game, so one must determine their goals and take baby steps to find the best in future. One can get a lot in return by taking up a few strategies and working on a few things.

Start investing now

Try to invest now, with proper management and make long-term strategies for getting better outcomes. That will help you grow your net worth without putting in much effort. One can start by opening a brokerage account and then stepping up to different other accounts to fit your goals.

You need to be more specific regarding your goals and start working on the plans that will fit your investment. Although retirement investment accounts are essential, plunge into personal brokerage accounts and make investments there if you are done with the maximum limits.

Maximize retirement savings

There are two options to save and invest for retirement, one is through your office’s 401k plan, or if you are self-employed, you have a solo 401k plan. Retirement savings are the best way to build your net-worth.

Some other particular plans make your retirement savings tax-free. We will suggest a traditional IRA for everyone with every income level that can help lower the tax bills and give you a better outcome for later years.

Make smart savings

Considerable assets, including real estate, build the net-worth while saving some cash upfront. Dig deeper to determine the correct savings accounts to build an emergency fund or any down payment for any house.

Do not go for less interest-earning accounts and switch to some saving accounts that will make you earn more in terms of saving. Switching to high-yield savings accounts that will help you get multiple times higher interest than money will help you reach your goals faster.

Choose a wise debt payoff strategy

Create a plan to deal with your liabilities and manage things to pay off debts. Please do not go for debts with higher interest rates, as one can get stuck into higher debts. Consider debt consolidation and sort out multiple debts into one payment. Explore ways wisely to grow your wealth.

Be patient and stay consistent

One must put effort into finding the right track to reach their goals. Do not be strict with yourself, and let your efforts hit your goals with patience. Do your best and work smart and hard slowly while staying consistent and then reap the results later in future.

Cut down on luxury spending

Find ways to make your life exciting and enjoyable without spending too much. Only adopt the behavior of spending on frivolous things with dropping a lot of money. Go back to your basics, set your budget and avoid bragging or getting into expensive shitty stuff.

Take advantage of employer matches and tax deferments

Set near-future financial goals that you can take for an extended period. Then you can make plans to manage your long-term financial goals through retirement accounts and multiple offers, including tax deferments by your company or employer.

Diversify your investments

Do not put all the eggs in one basket or all the money in one company’s stock. Find diverse ways to disperse your little investment while not relying only on one business. Protect yourself from disappointments and loss if the one business is not giving you as per your expectations.

Consider acquiring a business

Make a strategy to do business that gives you a return on investment rather than just draining your money. Business depends on the owner’s ability, which would also be an asset as salaries can not be considered your asset.

Raise your income

One must always try to increase their income by learning new skills or staying busy inside hustles that can make one enhance their earnings. Increase your monthly income, and you can do it by increasing your household’s net worth, which can boost social security payments in terms of retirement.


The average net worth is about calculating the assets and then excluding the liabilities. Assets include your liquidated and unliquidated valuables, and liabilities include your expense in terms of debts, monthly spending, credit card bills and much more. Knowing your net worth is crucial as you can check your finances and adjust your spending, saving, and investing habits.

The average net-worth by age, race, education and location varies, and according to Federal Reserve data, the average American family has a $748,000 worth. In comparison, the average maiden net worth is $121,700.

One must focus on factors that will boost your net-worth by controlling certain things. Focus on paying down debt to eliminate financial obligations, building emergency savings for unexpected expenditures, and looking for ways to enhance your capital and investments.