The average net worth in America by age, race, education and place of residence
The average college graduate has nine times the net worth of the typical American without a high school diploma.
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- According to Federal Reserve data, the average American family has a net worth of 748.000 US dollars.
- But the median net worth is 121.700 $.
- Data show net worth varies by age, race, location and education level.
The average net worth of American families, according to the latest data from the Federal Reserve's 2019 Survey of Consumer Finances, is. The Federal Reserve conducts the survey every three years announced in a February press release that it will release its 2022 survey in late 2023.
Between 2016 and 2019, the net worth of the average American family increased by 2%.
While the average net worth is over 700.000 $, the median net worth tells a very different story. Calculated in this way, the typical American family has a net worth of 121.700 US dollars. The median, or mean, in a series of numbers is less sensitive to outliers and therefore may be a more accurate representation of a typical family. The median shows a very different reality for Americans, and we've included both numbers in this look at American families' finances.
Average net worth by age
Your age has a lot to do with your assets.
People tend to build value in some assets over time. Retirement assets grow compound interest, for example, earning more interest for themselves. Home value, or the value of your home minus any mortgage debt, also tends to increase over time.
Here is the net worth of a typical American by age, according to Federal Reserve data:
| The age | Average net worth | Average net worth |
| Under 35 | 76.300 $ | 13.900 $ |
| 35 to 44 | 436.200 $ | 91.300 $ |
| 45 to 54 | 833.200 $ | 168.600 $ |
| 55 to 64 | 1.175.900 $ | 212.500 $ |
| 65 to 74 | 1.217.700 $ | 266.400 $ |
| 75 or older | 997.600 $ | 254.800 $ |
Average net worth by education level
As the education level of the head of household increases, so does the average net worth. The average college graduate has nine times more net worth than a typical American without a high school diploma and about four times more than someone who did not complete college.
It's worth noting, however, that median net worth tells a very different story. In terms of median net worth, those who did not complete college and those who only had a high school diploma have almost the same median net worth.
Here's how educational attainment affects Americans' average and median net worth:
| Highest education attained | Average net worth | Mean net worth |
| No high school diploma | 137.800 $ | 20.500 $ |
| Baccalaureate | 305.200 $ | 74.000 $ |
| Some college | 376.400 $ | 88.800 $ |
| University degree | 1.519.900 $ | 302.200 $ |
Average net worth by location
Where you live usually plays a big role in your net worth. While the cost of living in America's cities tends to be higher than the cost outside of cities, the typical American living in a city tends to have a higher net worth than people living in rural areas.
| Place | Average net worth | Change in average net worth compared to 2016 data | Median net worth |
| People living in urban areas | 806.400 $ | 1% increase | 126.000 $ |
| People who live in rural areas | 324.800 $ | 11% increase | 90.400 $ |
Average data show that the typical American in an urban area has 2.7 times the net worth of a rural American. In part, higher property values in cities could contribute to the higher net worth of urban America.
Job opportunities and income also contribute to this unequal wealth distribution, as high-paying job opportunities have shifted rural America to big cities. Data from the same Federal Reserve study show that families living in urban areas saw an average income increase of 11% between 2016 and 2019, while this was not the case for Americans living outside of urban areas No average income change over the same time period.
Average net worth by race
The racial wealth gap is reflected in America's average net worth. The average black family still has a much smaller net worth than the average white family, based on the latest 2019 data.
Here's how average net worth changes by race in America:
| Race | Average net worth | Mean net worth | Average change in net worth compared to 2016 |
| White, non-Hispanic | 983.400 $ | 188.200 $ | -1% |
| Black | 146.800 $ | 24.100 $ | -3% |
| Latino | 203.300 $ | 36.200 $ | -19% |
| Multiracial and other identities | 486.800 $ | 74.500 $ | 20% |
Average net worth by homeownership status
Real estate is an important factor in net worth. Even with a mortgage, a home can contribute to net worth. According to Federal Reserve data, the average homeowner has 2.8 times the net worth of a typical person who does not own a home.
| Homeownership Status | Average net worth | Mean net worth |
| Owns a home | 1.102.100 $ | 255.000 $ |
| Does not own a home | 95.600 $ | 6.300 $ |
What is net worth?
Net worth is the total value of assets you own minus any liabilities or debts. In this study, the federal reserveincluded several categories of assets, including:
- Bank accounts, including checking, savings, money market, brokerage money accounts, prepaid debit cards and call accounts.
- CDs, government bonds and savings bonds
- Health Savings Accounts
- Investment accounts, including 529 college savings plans and individual taxable investment accounts
- Retirement accounts, including IRAs, 401(k)s and 403(b)s
- Refundable life insurance and annuities with equity
- Vehicles including cars, RVs, motorcycles, boats, and helicopters
- Real estate, including homes
In calculating net worth, liabilities or debts are subtracted from the value of the asset amount. In this survey, debt included:
- Mortgages
- Home equity lines of credit or home equity loans
- Credit card balances
- Installment loans, including auto loans and student loans
Here's how to increase your net worth
The best way to build wealth is to play the long game: decide on your goals now and work toward them with small steps. Here are three places to start:
Maximize your retirement savings
Whether you save and invest for retirement through your office's 401 (k) or have a solo 401 (k) if you are self-employed, saving for retirement is one of the most important ways to build your wealth.
If you qualify based on income, a Roth IRA could help you save beyond your 401(k) plan and grow money tax-free. A traditional IRA is available to almost anyone at any income level and can help you lower your tax bill now instead of later.
Start investing now
Whether you want to start building wealth through an investment app or simply invest automatically without too much management, long-term investment is another way to increase your wealth.
Opening a brokerage account is the first place to start. There are different types of brokerage accounts that fit your goal, some more specific than others. If your goal is to one day pay for your child's college, opening a 529 plan could be the right choice for your investment. For individuals who have already reached the maximum limits for retirement accounts, putting your investments into an individual brokerage account may be right for you.
Get smart with your savings
To achieve big assets like real estate that build your wealth, you usually need to save some money up front. Whether you're saving for a down payment on a home or building an emergency fund, having the right savings account is critical.
If your savings account is earning 0.01% interest, it's time to switch it to an account that can earn you more money (z. B. Ally's high-interest savings account and Discover's online savings account earn 0.90% APY and 0.85% APY, respectively). , respectively). A high-yield savings account could help you earn multiples of interest each month and reach your goals faster.