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What is the average American net worth? The average (or mean) net worth of Americans is $748,800, according to the Federal Reserve Survey of Consumer Finances in 2019.
Key takeaways:
The Federal Reserve conducts a survey every few years to see where Americans stand financially. As of 2019, they found that the average American net worth was $748,000. The median net worth for American households was $121,700 during this same time. So, where do you stand?
Knowing your net worth and how you compare to other Americans can be a good way to see where you stand financially and how secure you are in your future.
Here, we’ll go over the average American net worth by age, education, household type, and more. This will give you a rough idea of how you compare, and then we’ll give some actionable tips you can use to increase your net worth and improve your financial well-being.
Table of contents:
Your net worth is comprised of your assets and your liabilities. Your assets include anything you own that’s worth money, which includes the following:
Liabilities are your debts, such as:
How much you save and invest aren’t the only contributing factors to your net worth. Here are some of the key findings and factors for the average net worth of Americans as reported by the Federal Reserve.
As of 2019, the median net worth of Americans was $121,700 and the mean was $748,800. The median is the main number to look at because it helps separate outliers. For example, if you had $100 and someone had $5, the average (or mean) would be $52, but that’s not an accurate picture because the person with $5 is so far from that average number. With net worth, the median helps separate the extremely wealthy from the average American.
Here, we’ve listed both the mean and median net worth of Americans by age:
Age group | Median net worth | Mean net worth |
---|---|---|
Under 35 | $13,900 | $76,300 |
35 to 44 | $91,300 | $436,200 |
45 to 54 | $168,600 | $833,200 |
55 to 64 | $212,500 | $1,175,900 |
65 to 74 | $266,400 | $1,217,700 |
75 and older | $254,800 | $977,600 |
While you might be looking to increase your net worth, it’s helpful to remember that everyone’s situation and goals are different. Your ideal net worth should be the amount you need to have to live comfortably and pursue the activities that you enjoy.
As we’ll cover in upcoming sections, education, family structure, race, and more all statistically influence net worth. In fact, Georgetown University published a study showing that one of the primary predictors of wealth was being born into a family with a high socioeconomic status (SES). The report found that these children often receive the material support they need to increase their scores, earn college degrees, and work in good entry-level jobs as young adults.
Education is one of the primary predictors of wealth in America, and those with a college degree have a median net worth of over 1,400 percent more than those without a high school degree. These individuals also have a median net worth of $219,400 more than those who only have some college.
Education level | Median net worth | Mean net worth |
---|---|---|
No high school diploma | $20,500 | $137,800 |
High school diploma | $74,000 | $305,200 |
Some college | $88,800 | $376,400 |
College degree | $308,200 | $1,519,900 |
Owning a home is one of the primary ways that people increase their net worth. In fact, many people buy homes as an investment. With every renovation, the value of a home typically increases, depending on the economy. During times when the housing market is performing well, a person’s net worth can grow significantly with homeownership.
Housing status | Median net worth | Mean net worth |
---|---|---|
Renter or other | $6,300 | $95,600 |
Homeowner | $255,000 | $1,102,100 |
Homeowners have a median net worth of nearly $250,000 more than renters. To buy a home, you need a quality credit score as well as the funds for a down payment.
The Federal Reserve charts how different family structures vary in net worth as well, and it shows that couples without children have a significantly higher net worth than single Americans. This makes sense because these are typically dual-income households without the additional expenses of raising children.
Family structure | Median net worth | Mean 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 |
Empower recently ran a survey of their users to discover the average net worth from state to state. Currently, California has the highest average net worth at $884,003, followed by Connecticut and Washington, which are at $873,746 and $865,309, respectively. The state with the lowest average net worth is North Dakota at $339,955.
In a section on why some states rank high or low, Todd Burnaford at Empower says, “Not surprisingly, some of the states with the largest numbers of millionaire households ranked high in net worth.
For example, New Jersey has the highest ratios of millionaire households per capita (9.76%). Connecticut (9.44%), Massachusetts (9.38%), California (8.51%), New Hampshire (8.47%) and Virginia (8.31%) also rank in the top 10 in both average net worth and ratio of millionaire households per capita.”
As previously discussed, education and family wealth are key indicators of a person’s net worth in America, and race plays a role in this as well. In the table below, you’ll find that the median net worth of White Americans is seven times higher than Black Americans and five times that of Hispanic and Latin Americans.
Race or ethnicity | Median net worth | Mean net worth |
---|---|---|
White, non-Hispanic | $189,000 | $980,550 |
Black or African American, non-Hispanic | $24,100 | $142,330 |
Hispanic or Latino | $36,050 | $165,540 |
Other or multiple race | $74,500 | $656,600 |
The Federal Reserve’s report shows that those living in urban areas and big cities have a median net worth two times that of those living in smaller communities. The report splits the two types of locations into Metropolitan Statistical Areas (MSA) and non-MSAs. Non-MSAs are locations with populations of 50,000 people or less, as explained by the Cornell University website.
Location type | Median net worth | Mean net worth |
---|---|---|
MSA | $126,000 | $806,400 |
Non-MSA | $90,400 | $324,800 |
Now that you know where you stand, if you’re looking to increase your net worth, here are some steps you can take to improve your financial future.
Lastly, you can create a budget. Finding where you can cut your spending and save money will provide you with more funds to pay down debt and then begin saving and investing.
Your current net worth is a predictor of your future net worth. If you’re looking to retire or leave money for your children, your net worth is an important factor. Unfortunately, if you have a low credit score, it can make building your net worth difficult. Not only does a low credit score mean you’re paying higher interest rates and security deposits, but it’ll be difficult to buy a home and take other steps that vastly increase your net worth.
Here at Credit.com, we’re here to help you find the tools, resources, and tips to manage your credit. If you’re not sure where you stand with your credit score, we’ll provide you with your credit score for free, and you can also receive a free credit report card. We also offer a variety of products like ExtraCredit, which can help you build your credit by reporting items to the credit bureaus that usually don’t help your score, so sign up today!
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