(NEXSTAR) – When you think about net worth, some of the richest people in the world may come to mind, like Jeff Bezos or even Oprah. But you don’t have to be a billionaire for it to matter.
Anyone can calculate their net worth and it’s a great way to measure your financial health. The Federal Reserve released its Consumer Finance Survey in October, which ranks the average net worth of Americans by age – so you can see how you compare to those around you.
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According to the Federal Deposit Insurance Corporation (FDIC), net worth is your assets minus your liabilities. Simply put, it’s everything you own minus any debts you owe.
Assets include things like your home and retirement investments. Liabilities include debts such as student loans and car payments.
You can use the FDIC calculator here to determine your own net worth.
Average Net Worth of Americans by Age
The Federal Reserve publishes its Survey of Consumer Finances every three years. The latest report contains data collected primarily in 2022.
According to the report, the median net worth of U.S. households increased 37% to $192,900 between 2019 and 2022. Median or average net worth increased 23% to $1,063,700.
You may be wondering why the mean is so much higher than the median net worth. That’s because the wealthiest households tend to drive up the average.
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The Federal Reserve said several factors likely contributed to net wealth increases in 2022, such as changes in the U.S. economy, the large number of families reporting “unusual income” in this recent survey, and people who At the beginning of the COVID-19 crisis, more money was saved during the pandemic.
The following table contains both mean and average net worth, broken down by the age of the head of household or reference person. The survey uses the term “significant other” to avoid assessing how different families might be structured. Single people who are economically dominant are also considered caregivers.
|Age of the head of the family (or caregiver)||Median net worth||Average Net Worth|
|Less than 35||$39,000||$183,500|
Source: 2023 Federal Reserve Consumer Finance Survey
Aside from net worth, the report also found that the home ownership rate increased slightly to 66.1% over the three years. For families that owned homes, the median net home value increased from $139,100 in 2019 to $201,000 in 2022, the survey said.
Click here to view the full report.
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Source : thehill.com