How Your Net Worth Compares to the National Average

Americans spend much of their adult lives balancing their income and savings, from opening high-yield savings accounts to consulting a financial advisor and sticking to a strict budget. Many of us spend decades working hard and investing our earnings to maximize our net worth. But how does your hard work compare to other people your age? A recent study shows just how much Americans are worth, and you can quickly see how your finances compare to others.

How to Calculate Your Net Worth

Let’s begin by calculating your net worth. Add up the value of all your assets, including cash, savings, investments, and equity in cars, houses, and other similar properties. Subtract outstanding debt or loans from that total to determine your net worth. There are also net worth calculators to help find the exact number.

The Breakdown by Age

The 2022 Survey of Consumer Finances is the most recent source of government-provided data. The survey breaks down economic data by finding the average net worth, which is the total net worth value divided by the number of individuals surveyed, and the median net worth, which is the middle point of the data set. However, many analysts believe that the average number is skewed by a small number of extremely wealthy American families with abnormally high net worths, so the median net worth is more accurate in determining the true financial state of most American households. This chart taken from the survey shows net worth by age bracket.

Age Range	Average Net Worth	Median Net Worth
20-24	$120,896	$10,800
25-29	$120,185	$30,160
30-34	$258,073	$89,801
35-39	$501,289	$141,200
40-44	$590,718	$134,730
45-49	$781,923	$212,800
50-54	$1,132,532	$272,800
55-59	$1,442,075	$320,700
60-64	$1,675,214	$394,010
65-69	$1,836,884	$394,300
70-74	$1,714,085	$433,100
75-80	$1,630,969	$316,000

Analyzing the Numbers

• Americans in their 20s probably have only a few thousand dollars due to entry-level salaries and the costs of living on their own for the first time. 

• Once you enter your 30s, that number rises as you capitalize on earning potential. Purchasing your first home or car is an excellent way to add to a person’s total net worth.

• In your 40s, the average American notices a slight dip in their net worth due to the costs of raising a family. People often recoup those losses later in the decade as they continue to make financial strides in their careers. 

• Americans in their 50s are likely to see a massive uptick in net worth due to a higher salary, several retirement and investment accounts, and significant assets like a larger home or more expensive car.

• When you reach your 60s, your career may wind down as you contemplate retirement. Many people’s net worth may slightly decline during this point as income falls with retirement or they begin withdrawing from investments.

• Most Americans see their net worth reach its apex in their 60s and early 70s due to personal savings and investments.

How to Raise Your Net Worth

If your net worth is not where you want it to be compared to your peers, there are ways to raise it. Build your savings by paying off debt and boost your income where possible with passive income, upgraded jobs, and side hustles. Cut back on unnecessary expenses, and take a look at reducing your necessary expenses, such as high home bills. You can gradually raise your net worth by increasing the amount of assets you have, whether through building home equity or increasing retirement savings payments. Maintaining a good credit score is also a good way of boosting your net worth.

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