Average and Median Net Worth by Age: How Do You Compare?

Average net worth

According to the 2022 Federal Reserve Survey of Consumer Finances, the average net worth of U.S. households is $1.06 million and the median net worth is $192,900^[0]

» MORE: See the average retirement savings by age

What is net worth?

Your net worth is the value of all your assets (such as your home, if you own one, your car, and money in savings, checking or retirement accounts) minus your liabilities (such as a mortgage, student loans, car loans or credit card debt). Net worth is one measure of wealth.

» MORE: Use our net worth calculator

Net worth by age

Net worth usually grows as a person ages and savings, investments and assets add up over time. It often dips when people retire, likely due to living on Social Security and fixed incomes as while inflation increases costs, including more medical expenses and transitions to assisted living.

How to increase your net worth

There are many tactics you can use to build net worth if that's your goal. Start with a few basic steps.

1. Track your spending

“Figuring out where your money is actually going is the first step,” says Chelsea Ransom-Cooper, a certified financial planner and chief financial planning officer at ZenithWealth Partners. “It doesn't matter how much you make, if your money isn't going to the right places, you can blow it.”

If you don't already have a budget, start tracking how much money comes in, and how much goes out, even if you have a high income.

Most budget frameworks will tell you to set aside a certain amount for needs, wants and savings/debt payoff.

Because net worth is what you own minus what you owe, cut down on what you owe. NerdWallet recommends paying down debts with the highest interest rates first. Another option you may consider is debt consolidation: rolling multiple debts into one payment.

2. Grow your money

“Immediately when that paycheck comes in, set up auto payments for all the things that are going to have a positive impact on your net worth,” Ransom-Cooper says. Any level of saving can add up, whether it’s stashing $200 or $20 per month.

“You’ll surprise yourself on how quickly you can build wealth,” Ransom-Cooper says.

If you have access to a 401(k) with an employer match, consider contributing at least enough of your paycheck to get the match. Your money, plus the match, will grow as you continue to work.

» MORE: See the average 401(k) balance by age

3. Increase your income

Sometimes it might feel like you don’t have enough left over to save and/or invest. If you want to get more cash flow, we have a list of money-making ideas, including different side hustles.

4. Be patient

Factors beyond your control can affect your net worth, such as stock market swings and sudden changes in income. The goal should always be to try to pivot as necessary to get your finances back on track.

The tables above show that net worth can change with time.

Try to be as consistent as you can with your savings so that compound interest can do its job in helping your money grow over the long term.