Between 2019 and 2022, Americans’ real median net worth surged 37%, the largest three-year increase over the history of the Federal Reserve Board’s triennial Survey of Consumer Finance. In addition, the Fed noted that this pattern implies some narrowing of the wealth distribution between surveys.
Understanding what a net worth means and where you stand might help you make some financial adjustments that could bolster your finances. So, what is someone’s net worth? Simply put, it’s your assets minus your liabilities, or debt.
As the Federal Deposit Insurance Corporation (FDIC) explained, net worth is a good indicator of your financial health and a better measure of someone’s financial stability than income alone.
The FDIC further noted that your net worth can be a positive number — meaning that you have enough to cover your debt and some assets left. You can also have zero net worth, in which case your assets equal your liabilities and you don’t have a financial cushion. Finally, you can have a negative net worth, meaning that your liabilities are greater than your assets and you don’t have a financial cushion in this situation either.
According to the Federal Reserve Survey of Consumer Finances, published in October 2023, both median and mean net worth rose for all age groups. Here is a breakdown of household net worth by age, according to the survey:
Head of Family: Less Than Age 35
- Median net worth: $39,000
- Average net worth: $183,500
Head of Family: Age 35 to 44
- Median net worth: $135,600
- Average net worth: $549,600
Head of Family: Age 45 to 54
- Median net worth: $247,200
- Average net worth: $975,800
Head of Family: Age 55 to 64
- Median net worth: $364,500
- Average net worth: $1,566,900
Head of Family: Age 65 to 74
- Median net worth: $409,900
- Average net worth: $1,794,600
Head of Family: Age 75+
- Median net worth: $335,600
- Average net worth: $1,624,100
Families with heads of household younger than 35 years old saw the largest growth, with their median and mean net worth more than doubling between surveys, yet they also remained the least wealthy age group.
The wealthiest group — age 65 to 74 years old — also saw a large growth. Meanwhile, families older than 75 years saw relatively modest median wealth growth, according to the Fed.
