What is the average networth? It depends on which average you mean. In the Federal Reserve’s 2022 Survey of Consumer Finances, the typical American household had a median net worth of about 192,900 dollars, while the mean, which is pulled up by very rich households, was roughly 1.06 million. Those two numbers describe very different realities, and the gap between them is the most interesting part of the story.
Median or mean: which one to trust
The median is the middle household: half have less, half have more. The mean is the total wealth divided by the number of households. Because a small number of households hold enormous fortunes, the mean is far above what a normal family has. For an honest picture of what is typical, use the median.
What the Fed survey found
The Survey of Consumer Finances is published every three years. The 2022 edition reported, in round terms:
- Median net worth of about 192,900 dollars for all households.
- Mean net worth of about 1.06 million dollars.
- A median around 39,000 dollars for households headed by someone under 35.
- Medians that rise through middle age and are highest in the 65 to 74 range, at a few hundred thousand dollars.
Check the Fed’s own tables for exact figures by age and group, since they publish full detail on their Survey of Consumer Finances page. These numbers are for the United States, and other countries look different.
Why age matters so much
Net worth usually follows a life cycle. Young adults often have student debt and few assets. Mid-career households build home equity and retirement savings. Many people reach their highest net worth just before or around retirement, and then slowly draw it down.
So comparing a 28-year-old to a national average of all ages is not fair. The better comparison is with people in your own age bracket.
What is in the number
Assets that count
Home equity, retirement accounts, savings, investments, vehicles and business interests.
Debts that subtract
Mortgages, car loans, student loans and credit card balances.
For many households, the home is the biggest asset. That is why net worth tends to track home ownership closely, and why renters often have a much lower median than owners.
Quick answers
Is being below the average bad?
Not necessarily. Being below the mean is the norm, since most households are below it. Being near or above the median for your age is a more useful reference.
Does the average include retirement accounts?
Yes. Retirement savings are part of the total, though pensions that pay income are usually not counted as an asset in the same way.
Do averages differ by group?
Yes. Surveys show large differences by age, education, race and family type. These reflect long-standing patterns in income, home ownership and inheritance.
How is it different outside the US?
Other countries measure wealth differently, and exchange rates and housing markets matter. Sources such as the UBS Global Wealth Report compare countries, though they use their own methods.
Using the figure properly
The average is a rough guide, not a score. If your net worth is lower than the median for your age, look at where the gap comes from. Often it is one big item, such as no home equity or a large student loan, rather than a general failure to save.
1. Calculate your own net worth with a simple asset and debt list.
2. Find the median for your age group in the Fed’s tables.
3. Check whether the difference is explained by one or two big items.
4. Choose one change, such as raising your retirement contributions or paying down a high-interest card.
Why the mean misleads
Imagine a room of ten people, each with 100,000 dollars. The mean is 100,000 and so is the median. Now one billionaire walks in. The mean jumps to many millions, but nothing changed for the ten people. That is the same effect that makes the national mean so much larger than the national median.
It also explains why wealth gaps look so large when you read headlines. The top one percent hold a large share of total wealth, and they lift the mean while the median barely moves.
So what is the average networth for you?
If you are asking what is the average networth in order to judge your own progress, aim for a comparison that is fair. Use the median for your age band, ignore the mean, and remember that home prices in your area can shift the picture a lot. A renter in a high-cost city and a homeowner in a low-cost town may be saving equally hard but look very different on paper.
A caution about old figures
Net worth figures change with house prices and stock markets. The 2022 data came after a strong run for asset prices in the early 2020s, so the next survey may look different. Always check which year a number comes from before you quote it.
This article is general information, not financial advice.
Related reading: Marketing to Ultra High Networth Individuals: What Works.
