Average Amount Of Money People Have By Age In The US?

Matt | Personal Finance

Average Net Worth By Age 2025 – Where Are You? #wealthbuilding #savingmoney #investing  Have you ever wondered how your Net Worth compares to others in your age group in 2025?   In this video, I break down the average net worth by age — and show you what a healthy net worth looks like in your 20s, 30s, 40s, 50s, 60s and beyond. You’ll get real benchmarks, smart personal finance tips, and the exact money habits to build wealth at any stage.  We cover the average and median Net Worth by age in the US based on the latest data from the Federal Reserve. This video includes how to calculate Net Worth and how much money the average American has.  Plus I also share 5 actionable tips for how you can build and increase your own Net Worth!

Transcript

00:00Have you ever wondered how your net worth stacks up against your peers?

00:04I've done the research and I'm going to share with you the average net worth numbers for households

00:08in the US based on data from the Federal Reserve. If you're new to this channel, I'm Matt,

00:13I'm a finance consultant. I've spent over eight years working for one of the top consulting

00:17companies in London. I now run my own company and on this channel, I talk all things personal

00:23finance. So before we get going, it's worth explaining what net worth is and how it's

00:27calculated. It's the calculation of what you own your assets minus what you owe your debts and

00:34liabilities. So for example, if you had a $350,000 house, $50,000 in your pension and $10,000 in cash

00:43in a bank account, then you would have a total of $410,000 worth of assets. However, for your net

00:49worth, you need to subtract any debts that you had. So if you had a $250,000 mortgage and $2,000 worth

00:57of credit card debt, then the total net worth would actually be the $410,000 minus the $252,000

01:05equaling a total net worth of $158,000. You can use an online net worth calculator to help you

01:12calculate your own net worth. The key categories of net worth are firstly physical wealth, which

01:17includes things like the value of any cars that you own or household possessions such as jewelry,

01:22watches, electronics, or expensive furniture. Secondly, property wealth, which includes your

01:28home or main residence, and then any other properties that you might own such as rental

01:33properties or a holiday home. It's the value of these properties minus any mortgage debt.

01:39Thirdly is the value of your pension wealth and investments. And fourthly is your financial wealth

01:44from things like savings, stocks and shares, and any other financial investments that you might have

01:49minus any financial liabilities like credit card debts or personal loans. Importantly, it's not to

01:55be confused with earned income, which is your paycheck or your salary that you earn each month. You could

02:01be earning over $100,000 a year, but if you spend it all rather than saving, investing, and having assets,

02:08then your net worth is going to be zero. According to the most recent report released in October last

02:13year, the overall average net worth for US households is just over $1 million. You're probably thinking

02:20that's a lot of money. That's because affluent households drive the average up. If you look at

02:25the median or middle point value, which is a better representation of the everyday person,

02:31the overall median net worth for US households is just over $192,000. It's probably made you breathe a

02:38little easier. In this video, we're going to be looking at the average and median net worth figures

02:43for US households. So let's get going and start with the net worth for people aged between 18 and 24.

02:50For a lot of people at this age, they're either in or finishing college and university. They're just

02:54starting their career and they've often got large amounts of student debt to pay back. The median net

03:00worth for this age group is around $10,000 and the average net worth is around $112,000. And then for

03:08people aged between 25 and 29, who are just starting their careers, the median net worth is over $31,000

03:15and the average net worth is just over $120,000. In the thirties age group, net worth starts to

03:22increase more rapidly. The median net worth almost triples to over $88,000 and the average net worth

03:29doubles to $258,000. And then by 35 to 39, net worth increases again, with the median net worth

03:37increasing to $138,000. And the average net worth is now over half a million. In the late forties and

03:44fifties age groups, again, we see big increases in net worth. This is where people's pensions and

03:50investments have grown. They've likely owned and held property, which is appreciated in value over time.

03:56And they might also own businesses, which has also contributed to their net worth. It's also the age

04:02groups where on average, they earn the most amount of money they will do over their lifetime. So

04:07they're able to save, invest and grow their wealth at a much faster rate. For the age group between 45

04:13and 49, the median net worth is $213,000. And the average net worth is almost $782,000. And then if you

04:22go up to the 55 to 59 age group, the median net worth is $321,000. And the average net worth is now

04:30$1.44 million. Typically, property and pension make up the highest proportion of net worth for these age

04:37groups. Between late 60s and early 70s, net worth peaks and then gradually starts decreasing from early

04:44to mid 70s, when pension and retirement spending is increasing. Often at this point, people are turning

04:49their investment strategies from wealth appreciation to wealth preservation to support their retirement

04:55plans. For people aged between 65 and 69, the median net worth is over $393,000. And the average net

05:04worth is over $1.83 million. For the 70 to 74 age group, the median net worth continues to increase to

05:11over $438,000. But the average net worth starts to decrease and is now 1.71 million. And then for

05:19the 75 to 79 age group, the median net worth decreases to $338,000. And the average net worth

05:27also continues to decrease to $1.62 million. And that trend continues for the over 80 category.

05:34You might have spotted some correlations in the data. There's a strong correlation between age and

05:39wealth. As age increases, so does net worth up until retirement age. And then it starts to gradually

05:45decline. There's also a correlation between education and wealth. The median net worth of people in the

05:51US with a college degree is over $464,000. While the median net worth of people with no high school

05:58diploma is only $38,000. And then another point to note is that the data is covering all US states and

06:05the average net worth varies greatly when you look across the US. For example, in California, the median net

06:11worth for an individual is over $85,000. While in Oklahoma, the median net worth is just over $19,000.

06:19If you're looking at these numbers and thinking, well, I'm nowhere close to the net worth figures for

06:24my age group, or you're just wondering how to build and increase your own net worth, I'm going to share

06:30five tips for how you can do this. The first one is on how you manage your income and expenses and

06:35stopping the cycle of lifestyle inflation. As you earn more money, you spend more money. Many of the

06:40people who have large wealth aren't actually the same people who spend lots of money on designer

06:45clothes, sports cars, multiple holidays abroad. If you can do your best to keep your expenses at a

06:51similar level or within your means while your income goes up, you'll find you're able to grow

06:56your wealth at a much faster rate. One of the things I found really helpful was to have an income and

07:01expenses tracker. It helped me to set a goal on where I wanted to get to, to identify what I could save and

07:08invest. And it also helped me to target, to reduce the cost of large monthly expenses. So I could

07:13manage my budget to be within my means each month. Second is to pay off any high interest debts that

07:18you have, such as credit card debts, car loans, personal loans, or student debt. It's very difficult

07:24to build your savings and your wealth. If you have high interest debt, it can often feel like you're

07:29living paycheck to paycheck. Your income comes in, you pay your rent, you pay your bills, you pay off any

07:35credit card interest. And then at the end of the month, you find you haven't got any money left to

07:39save and invest. So if you have any high interest debt, make it a priority to pay off as soon as

07:45possible. Start by listing any debts that you have with an interest rate of greater than 7% and pay

07:50off the highest interest rate first. The third point is to save at least 20% of your annual income and to

07:56put it into your pension investments. If you haven't done this already, start by opening a tax-free

08:01investment account, such as a Roth IRA, and maximize any employer match pension benefits like 401k.

08:08Fourth is to focus on ways to increase your income so you're able to save more each month.

08:14There are a few ways to do this. One way is by investing in yourself to increase your skills so

08:19you're more valuable in the job market, either to be able to negotiate a higher salary or to be able to

08:24move to a higher paying job. For example, if you're currently a waiter in a restaurant and you manage to

08:29save up $500 and you take that money and you pay for a sales course, which enables you to get a

08:35sales job, paying you more money. If you're then able to add the ability to do marketing on top while

08:40you're doing your sales job, then you're now able to run an ad campaign, get customer leads in and

08:46close sales. Your earning potential has just gone up tenfold compared to the pay you were getting as a

08:51waiter. Another way to increase your income is to start a side hustle business. There are lots of

08:56videos on YouTube and online giving ideas of what you can start from scratch, and many of these don't

09:02require lots of startup money to get going with yourself. For example, it could be teaching a short

09:08course online about how to edit photos, which you can do on platforms such as Udemy. Have a think about

09:14what strengths and skills you already have, which could help you to earn some additional money on the

09:19side. And the fifth and final point is to invest with a long-term mindset. The trend for most people

09:24is that net worth increases as you get older, and it's essential to be as consistent as you can with

09:30your investments so that compound interest can do its job in helping your money grow over the long

09:36term. If someone who is 30 were to invest $500 per month over a 35-year period, assuming an average

09:44annual rate of return of 8%, they would have just over $1 million by 65. That's pretty good going.

09:52The earlier you can save and invest, the more benefit you can get from compounding your investments.

09:57The other part to this is acquiring assets which grow in value over the long term. If you look at

10:03some of the wealthiest people in the world, people like Elon Musk, Warren Buffett, Bill Gates, their wealth

10:08is not based on having cash in the bank. It's based on the value of the assets they own. They've acquired

10:14assets such as businesses or property, and their wealth grows from the equity value increasing, and

10:20also from the assets generating income. And that income is then reinvested in buying more assets, and

10:26that cycle keeps compounding, growing the size and value of their assets and wealth. So these are my top

10:32five tips for helping you grow your net worth and wealth. I hope this video has been helpful. Feel

10:37free to leave any questions in the comments and give the video a like and a subscribe, and I'll see

10:42you on the next video.

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