Are You Poor? Here's The Average Net Worth Of Americans And How You Stack Up

The year 2020 will be remembered as the year a pandemic brought the world to its knees. It was a struggle for every working man and woman in all corners of the planet. For Americans, the year showed how much disparity exists in the pay brackets across the country.

The overall average net worth of U.S. households is $748,800, according to the Federal Reserve’s latest Survey of Consumer Finances (SCF). The figure depends on the age and tends to increase as people earn more as they grow older and assets appreciate their value over time, CNBC noted.

However, there is a caveat to this figure. As of 2019, the average total debt per consumer was $90,460, which includes mortgages, credit bureau Experian reported.

CNBC noted, however, that looking at the average net worth is not the best way to see the state of Americans’ financial standing. The figure is too high, with the wealthiest Americans skewing the proportions. Americans are instead better judged by their median net worth, which is $121,700, per the SCF.

The Federal Reserve's data showed that $168,600 is the median net worth for Americans between the ages of 45 and 54. But those figures are much better compared to how much young Americans are worth. Those aged 35 to 44 have a median net worth of $91,300, while Americans younger than 35 are at $13,900.

But there is a way for Americans to lift themselves and grow their net worth. There are a variety of options available for them to maximize what they have by the time they age and retire.

CNBC said it is recommended that Americans in their 40s and 50s park their income on savings accounts that have better returns for their money. They are also advised to opt for higher interest checking accounts offered by major banks across the country.

Americans are also encouraged to make investments. CNBC recommended investing money on new assets to create new revenue streams. Mutual funds, index funds, 401(k) and real estate are some great investment options for a working American, per the outlet.

With these investments, the goal should be a debt-free, financially stable retirement. Fidelity Investments experts said that those who retire at 67 years old should have savings worth 10 times their income.