What Is Net Worth and Why It Matters
Net worth is the value of assets minus liabilities. It is a common measure of financial position used by economists, policymakers, and researchers to compare wealth across households and classes.
Average Net Worth by Class and Income Group
Wealth data is often grouped by income quintile, education level, or age. Federal Reserve data show that higher income and older households typically hold more wealth than lower income and younger households. For detailed tables, see the Federal Reserve Survey of Consumer Finances at https://www.federalreserve.gov/econresdata/scfindex.htm.
Key Takeaways for Understanding Wealth Distribution
Average figures can differ from medians because a small number of very wealthy households raise the mean. Median net worth is often a better indicator of typical household wealth. Differences across classes reflect income, savings rates, homeownership, and access to investment opportunities.
