If you’re curious about your financial health, one of the key metrics you’ll want to track is your net worth. In simple terms, your net worth is the difference between your assets (what you own) and your liabilities (what you owe). It’s a snapshot of your overall financial situation and can be a useful tool for setting financial goals and tracking progress.
Common net worth
According to recent data, the mean net worth in the United States is around $746,820. Of course, this figure can vary widely depending on factors such as age, income, education level, and geographic region.
Recent changes
Looking back at the last two decades, we can see that mean net worth has evolved significantly. Prior to the 2008 financial crisis, mean net worth was steadily increasing, hitting a peak of $710,000 in 2007. However, the crisis had a significant impact on wealth, with mean net worth dropping to $570,000 by 2010. It took until 2016 for mean net worth to recover to pre-crisis levels.
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More recently, the COVID-19 pandemic has had a mixed impact on net worth. While many people have struggled with job losses and financial insecurity, others have benefited from rising asset prices and government stimulus programs. As a result, the overall effect on mean net worth is not yet clear.
To help visualize these changes, we’ve included a chart below that tracks the mean net worth of American households from 1999to 2019:
As you can see, there have been some significant ups and downs over the past two decades. However, it’s worth noting that the mean net worth has been steadily increasing since 2012.
Net worth: slicing the data
Now let’s take a closer look at how net worth varies by different demographic factors. First, age is a major factor in determining net worth. According to recent data, the mean net worth for those under 35 is just $76,300, while those over 65 have a mean net worth of $1,217,700. This makes sense, as older Americans have had more time to accumulate assets such as homes and retirement savings.
| Age Range | Mean Net Worth | Median Net Worth |
|---|---|---|
| Under 35 | $76,300 | $13,900 |
| 35-44 | $436,200 | $91,300 |
| 45-54 | $877,900 | $168,600 |
| 55-64 | $1,269,500 | $212,500 |
| 65-74 | $1,217,700 | $266,400 |
| 75+ | $1,067,000 | $254,800 |
Education level is another important factor. Those with higher levels of education tend to have a higher net worth. For example, those with a bachelor’s degree have a mean net worth of $505,000, while those with only a high school diploma have a mean net worth of $174,000.
| Education Level | Mean Net Worth |
|---|---|
| Less than high school graduate | $66,000 |
| High school graduate or equivalent | $174,000 |
| Some college or associate degree | $345,700 |
| Bachelor’s degree only | $1,118,600 |
| Advanced degree (master’s or higher) | $2,598,400 |
Finally, there are significant differences in net worth by geographic region. The Northeast and West tend to have higher mean net worths than the South and Midwest. For example, the mean net worth in the West is $827,500, while the mean net worth in the South is just $554,600.
| Region | Mean Net Worth |
|---|---|
| Northeast | $571,700 |
| Midwest | $397,100 |
| South | $554,600 |
| West | $827,500 |
Common net worth: wrap up
In summary, net worth is a key metric for tracking your overall financial health. While the mean net worth in the United States has evolved significantly over the past two decades, it has generally been increasing in recent years. However, there are significant variations in net worth by age, education level, and geographic region, so it’s important to keep these factors in mind when evaluating your own financial situation.
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