Stellar Snippets
First of all, what is net worth? The short definition is that it is the difference between what you owe and what you own. Your assets minus your debt.
The Federal Reserve’s Survey of Consumer Finances published a report in Oct. 2023 breaking down the median and average American net worth by age.
The average net worth of a primary earner below 35 is $183,500, the median being $39,000. Ages 35-44 have an average of $549,600 and a median of $135,600.
The highest average net worth is seen in the age group 65-74 with an average net worth of $1,794,600 and a median net worth of $409,900.
Experts advise referring to the median rather than the average, as it is skewed by the affluent U.S. households, making the net worth higher than it actually is.
Assets counting toward your net worth include cash, investments, retirement accounts, jewelry, real estate, art, and collectibles.
Debt includes credit card balances, student loans, mortgages, and auto loans. Knowing your net worth indicates your financial health.
You can decide whether to buy that house or study that course based on the value of your assets to your debts. Thus, knowing your net worth helps you make better financial choices.