From Research we found out that an average American Household has a net worth of $748,000.
However, if we remove home equity from this amount, the median net worth would now be $121,700.
In this article, we will tell you the average net worth of an American Household. Also, we will give you some other useful.
With that in mind, let’s begin with the average net worth of an American Household.
Average U.S Net Worth
The word “Average” means the median net worth in mathematical terms. In other words, this means the midpoint between the highest and lowest net worth in the U.S.
Hence, note that the net worth is figured when liabilities are subtracted from assets.
Thus assets mainly include real estate and money. Whereas Liabilities include loans, debts on credit cards, etc.
Also, note that most American wealth is tied up mainly in their household. Thus, the net worth of the household doesn’t reflect the daily financial state of the household.
Average Net Worth by State
Your location places a major role in your earning and also in your net worth. Hence, the average and median net worth by states as of 2019 are based on the Federal Reserve reports.
| States | Average Net Worth | Median Net Worth |
| Alabama | $343,000 | $85,900 |
| Alaska | No data | No data |
| Arizona | $420,900 | $126,100 |
| Arkansas | $281,100 | $49,990 |
| California | $628,400 | $200,300 |
| Colorado | $630,400 | $217,900 |
| Connecticut | $733,400 | $173,500 |
| Delaware | $341,900 | $143,700 |
| District of Columbia | $355,900 | $24,000 |
| Florida | $410,100 | $95,770 |
| Georgia | $365,900 | $110,000 |
| Hawaii | $708,700 | $373,200 |
| Idaho | $418,900 | $182,400 |
| Illinois | $389,800 | $103,500 |
| Indiana | $309,600 | $84,620 |
| Iowa | $456,700 | $152,800 |
| Kansas | $330,800 | $77,010 |
| Kentucky | $295,700 | $73,150 |
| Louisiana | $350,300 | $84,850 |
| Maine | $463,200 | $107,400 |
| Maryland | $565,200 | $194,700 |
| Massachusetts | $587,100 | $251,000 |
| Michigan | $374,300 | $117,600 |
| Minnesota | $555,500 | $228,500 |
| Mississippi | $159,600 | $40,280 |
| Missouri | $304,600 | $70,220 |
| Montana | $407,200 | $190,300 |
| Nebraska | $366,200 | $99,520 |
| Nevada | $378,000 | $93,920 |
| New Hampshire | $531,300 | $243,600 |
| New Jersey | $581,300 | $195,200 |
| New Mexico | $256,200 | $56,450 |
| New York | $479,900 | $123,900 |
| North Carolina | $419,200 | $108,400 |
| North Dakota | $563,600 | $241,000 |
| Ohio | $390,700 | $102,800 |
| Oklahoma | $360,600 | $80,790 |
| Oregon | $598,200 | $183,200 |
| Pennsylvania | $455,400 | $137,800 |
| Rhode Island | $319,200 | $83,790 |
| South Carolina | $364,500 | $81,150 |
| South Dakota | $599,900 | $216,600 |
| Tennessee | $338,700 | $70,100 |
| Texas | $340,000 | $90,390 |
| Utah | $444,100 | $170,900 |
| Vermont | No data | No data |
| Virginia | $540,600 | $148,400 |
| Washington | $566,900 | $170,400 |
| West Virginia | $294,500 | $65,290 |
| Wisconsin | $427,200 | $110,400 |
| Wyoming | $495,300 | $171,600 |
Average Net Worth by Age
According to the Federal Reserve reports, here is the average and median net worth by age as of 2019.
| Age | Average Net Worth | Median Net Worth |
| 75 and above | $958,450 | $254,900 |
| 65 to 74 | $1,215,920 | $266,070 |
| 55 to 64 | $1,176,520 | $213,150 |
| 45 to 54 | $833,790 | $168,800 |
| 35 to 44 | $437,770 | $91,110 |
| Below 35 | $76,340 | $14,000 |
Average Net Worth by Education
Here is the average and median net worth by education level as of 2019 based on the Federal Reserve reports.
| Education Level | Average Net Worth | Median Net Worth |
| College degree | $1,516,910 | $308,800 |
| Equivalent to a college degree | $374,010 | $89,280 |
| High school diploma | $304,590 | $73,890 |
| No high school diploma | $137,580 | $20,780 |
Average Net Worth by Family Structure
Here is the average and median net worth by Family Structure as of 2019.
| Family Structure | Average Net Worth | Median Net Worth |
| Couple with no child | $1,314,550 | $251,700 |
| Couple with a child or children | $879,210 | $166,300 |
| Single with no child (age 55+) | $444,900 | $119,500 |
| Single with no child (under age 55) | $131,760 | $15,700 |
| Single with a child or children | $284,620 | $36,710 |
Average Net Worth by Ethnicity
Here is the average and median net worth by Ethnicity as of 2019 based on the Federal Reserve reports.
| Ethnicity | Average Net Worth | Median Net Worth |
| White | $980,550 | $189,100 |
| Black | $142,330 | $24,100 |
| Hispanic | $165,540 | $36,050 |
| Other Ethnicity | $656,600 | $74,500 |
How to Calculate Your Net Worth
If you want to know your Net Worth just follow these easy steps to calculate your net worth:
First sum all your liquid assets. Hence, this includes; cash, savings, land, or a vehicle.
Next, get the sum of your liabilities such as; debt, loans, and medical bills. As well as other outstanding payments.
Now, subtract your liabilities from your total assets to get your net worth.
For instance, if you have an asset of $1,000,000 and liabilities of $700,000, your net worth is $300,000.
All, you have to do is subtract $700,000 (liabilities) from $1,000,000 (assets) to get $300,000 (Net worth).
How to Increase Your Net Worth
To increase your net worth there are some bold steps you must make. Hence, below are ways by which you can increase your net worth:
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Pay off debt
The first way to increase your net worth is to pay off your debts.
Hence, by paying off your debt, you reduce your total liabilities and increase your net worth.
Thus, this act increases your net worth even with a steady asset level.
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Maximize your retirement contributions
This is another great way to increase your net worth. Hence, you’re not just only increasing your assets, but you also reducing your current tax burden.
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Cut down expenses
Cutting down your expense is a great way to increase your net worth. Hence, if you spend less money, you save more of it, thereby increasing total assets.
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Increase your income
This is another way by which you can increase your net worth. Hence, you can increase your income by having multiple sources of income.
As long as do not also increase your spending, increasing your income helps you to save and invest more.
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Invest wisely
Saving money is not just the only way to increase your assets. Hence, you should also learn to invest your money wisely.
Thus, some of the money you’ve saved can be used to invest. Hence, these investments grow over time and increase your income.