If you spend a lot of time on social media, it’s easy to feel like your peers are leaving you behind.
That’s because social media only shows you everyone’s highlight reel.
The reality can be much different.
We should look at data if you’re wondering how you stack up against your peers.
Fortunately, we have that data from the U.S. Census Bureau. They collect net worth data every year and publish it in a Survey of Income and Program Participation. This data is from the survey year 2023 and was released by the U.S. Census on July 11th, 2024.
Median Net Worth by Age
Here is the median net worth of Americans based on their age cohort:
- All Americans: $176,500
- Under 35: $31,110
- 35 – 44: $210,800
- 45 – 54: $210,800
- 55 – 64: $280,700
- 65 – 69: $321,300
- 70 – 74: $403,000
The figures above include home equity, if you strip those out then you have the following median net worth figures:
- All Americans: $60,000
- Under 35: $18,300
- 35 – 44: $47,040
- 45 – 54: $80,120
- 55 – 64: $104,300
- 65 – 69: $122,300
- 70 – 74: $150,400
You can review your age bracket and see just how you compare against folks your age.
I would argue that the age brackets are a bit large, but that’s the limitation of using Census data. Someone 22 is usually in a completely different stage of life than someone 34, though both are in the same cohort. Still, this gives us a bit of context for what we see around us.
Home Equity Accounts for the Majority of Net Worth
The most surprising takeaway from this data is how much of our collective net worth is in home equity. This might explain why Americans believe owning a home is part of the American Dream.
Here’s the percentage of home equity of total net worth for each cohort:
- All Americans: 66%
- Under 35: 41%
- 35 – 44: 65%
- 45 – 54: 62%
- 55 – 64: 63%
- 65 – 69: 62%
- 70 – 74: 63%
Except for those under 35, every other cohort’s net worth is mostly home equity. I suspect the Under 35 cohort is only 41% because they simply own fewer homes, and the ones they own, they haven’t owned for long.
Net Worth by Generation & Education
The Census breaks down the data in various ways, which highlights the importance of factors other than age.
First, just for fun, we have net worth by generation:
- Generation Z – $77,590 ($8,600 when excluding net worth)
- Millennial – $79,900 ($32,000 when excluding net worth)
- Generation X – $207,100 ($79,000 when excluding net worth)
- Baby Boomer – $327,500 ($119,200 when excluding net worth)
- Silent Generation – $304,400 ($91,800 when excluding net worth)
Not surprisingly, the older generations have higher figures. It is interesting to note that Generation Z and Millennials are fairly similar in total net worth, but Millennials have more of it tied up in their homes.
Finally, education:
- No high school diploma – $8,700 ($3,810 when excluding net worth)
- High school graduate only – $57,020 ($17,570 when excluding net worth)
- Some college, no degree – $94,150 ($25,970 when excluding net worth)
- Associate’s degree – $147,500 ($44,790 when excluding net worth)
- Bachelor’s degree – $287,600 ($125,100 when excluding net worth)
- Graduate or professional degree – $544,700 ($296,200 when excluding net worth)
Again, this seems to match up with all the data we’ve ever seen about how education influences our income. It makes sense that it would also factor into our net worth.
You May Be Doing Just Fine
If you’re under 35 and have a net worth anywhere close to $31,110, know that you are doing OK. This includes equity you may have built up in your home, which doesn’t feel like real money but counts all the same.
As you scroll through social media, remember that Americans collectively have over a trillion dollars in consumer debt.
What you see on social media is usually not a sign of wealth but of consumer spending; avoid confusing the two.