You may think the term “net worth” only applies to celebrities and CEOs, but it’s something we all have — and we all should know it.

Your net worth, calculated by the total value of your assets minus your debt, is essentially a snapshot of where you stand financially as a whole, taking into account how much you owe and the value of the things you own. You can think of it like a report card on your financial health.

And although net worth varies widely based on a person’s circumstances, like their income, cost of living, family inheritances, housing status (renter or buyer) and educational background, knowing the net worth of someone your same age is a good benchmark to help you see where you stand compared to the average.

Here’s a breakdown of both median and average American net worth by age, according to the Federal Reserve’s Survey of Consumer Finances published in October 2023. Keep in mind the average figures are skewed by the most affluent households in the U.S., making the median net worth figures a better indicator of where Americans at every age actually stand.

Household net worth by age

Age of head of family	Median net worth	Average net worth
Less than 35	$39,000	$183,500
35-44	$135,600	$549,600
45-54	$247,200	$975,800
55-64	$364,500	$1,566,900
65-74	$409,900	$1,794,600
75+	$335,600	$1,624,100

Source: The Federal Reserve Survey of Consumer Finances, published October 2023 

Everything that goes into your net worth

As we mention above, your net worth is calculated by adding up your total assets (like earned income) and then subtracting your liabilities (such as debt).

Your assets can include anything you own that has value, like:

• Cash
• Investments
• Retirement accounts
• Property
• Jewelry
• Art
• Collectibles

Your liabilities can include any and all debt, like:

• Credit card debt
• Student loans
• Mortgages
• Auto loans

In simple terms, net worth looks at the difference between what you owe and the assets you own.