What Is Net Worth?
Net worth is the difference between your total assets and total liabilities. Assets include cash, investments, real estate, and retirement accounts, while liabilities include mortgages, loans, and credit card debt. A higher net worth generally indicates stronger financial health.
Average Net Worth in the United States
According to the Federal Reserve, the average net worth of U.S. households is several hundred thousand dollars, but the median is much lower because a small number of households hold a large share of wealth. Age, income, education, and homeownership all influence where a person falls on the distribution.
How Age and Income Affect Net Worth
Net worth tends to rise with age as people save more and pay down debt. Middle-aged households often have the highest averages, while younger households may have lower or even negative net worth due to student loans and shorter savings histories. Higher income households usually accumulate more wealth over time.
For detailed data and methodology, see the Survey of Consumer Finances.
