Net worth is the total value of your assets minus your liabilities. Simply put, it's everything you own minus everything you owe.

To calculate your net worth:

1. Add up all your assets (what you own)
2. Add up all your liabilities (what you owe)
3. Subtract liabilities from assets

Assets include:

• Cash in bank accounts
• Investment accounts
• Retirement accounts (401(k)s, IRAs)
• Real estate equity
• Vehicles
• Valuable personal property

Liabilities include:

• Mortgage balances
• Credit card debt
• Auto loans
• Student loans
• Personal loans
• Any other debts

Important: Income is not part of net worth calculations. High earners can have low net worth if they spend heavily, while modest earners can build significant wealth through saving and investing.

Median U.S. Family Net Worth by Income (2022):

• Less than $20,000: $14,000
• $20,000 to $39,900: $71,000
• $40,000 to $59,900: $159,300
• $60,000 to $79,900: $307,200
• $80,000 to $89,900: $747,000
• $90,000 to $100,000: $2,556,200
• All families: $192,900

Median Net Worth by Race/Ethnicity:

• White non-Hispanic: $285,000
• Black or African American non-Hispanic: $44,900
• Hispanic or Latino: $61,600
• Other or multiple race: $132,900
• All families: $192,900

Median Net Worth by Education:

• No high school diploma: $38,100
• High school diploma: $106,800
• Some college: $136,500
• College degree: $464,600
• All families: $192,900

These statistics come from the Federal Reserve's 2022 Survey of Consumer Finances, released in September 2023.

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