Median Income and Net Worth of American Households by Age
Median Income and Net Worth by Age
The recent Federal Reserve Survey of Consumer Finances highlights the financial snapshot of American households. The data reveals that achieving the median income and net worth is key to being in the top half of households in the U.S.
Interpreting Statistics:
- 25% of households reported a net worth under $27,100, which means 75% reported a higher net worth.
- 50% of households reported a net worth under $192,900, which means 50% reported a higher net worth.
- 75% of households reported a net worth under $658,900, which means 25% reported a higher net worth.
- 90% of households reported a net worth under $1.9 million, which means 10% reported a higher net worth.
Prudent Budgeting and Investment:
Financial advisors recommend the 50-30-20 rule for budgeting money. This strategy allocates income to needs, wants, and savings categories, emphasizing paying off high-interest debt before saving. Investing in an S&P 500 index fund can provide long-term wealth growth by tracking the performance of the U.S. stock market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.