The Federal Reserve conducts its Survey of Consumer Finances (SCF) every three years. The report provides a snapshot of the financial conditions of U.S. households, measuring income, assets, and debt across various demographic categories.
The latest SCF was conducted in 2022 and published in 2023. The median net worth among U.S. families at the time was $192,700. Median is one way to measure the average. It refers to the middle value of a data set, meaning half the numbers are bigger and half the numbers are smaller. So, anyone with a net worth above $192,700 ranks in the top 50% of American households.
However, it makes more sense for individuals to benchmark themselves against people of a similar age. Time is one of the most important variables when it comes to building wealth. Read on for an age-based breakdown of the median net worth in the U.S. and to see five money-making strategies for 2025 and beyond.
Image source: Getty Images.
By definition, net worth equals assets minus liabilities. Some of the most common assets are bank accounts, retirement accounts, and brokerage accounts. And some of the most common liabilities are credit card debt, mortgages, and auto loans. The chart below shows the median net worth among American households based on the age of the reference person.
Age Group
Median Net Worth
18-34
$39,040
35-44
$135,300
45-54
$246,700
55-64
$364,270
65-74
$410,000
75+
$334,700
All households
$192,700
Data source: Federal Reserve 2022 Survey of Consumer Finances. Note: Reference person refers to the male in mixed-sex couples and the older individual in same-sex couples.
As shown above, U.S. households reported a median net worth of $192,700 in the 2022 Survey of Consumer Finances. That means half of households reported a greater net worth, while the other half reported a smaller one. The same applies to the net worth shown for specific age groups.
The first three steps to increasing your net worth are creating a budget, tracking your spending, and paying down high-interest debt. Financial advisors often suggest the 50-30-20 budgeting framework, which divides after-tax income into three spending categories:
50% to necessary purchases, like food, medical care, housing, and utilities
30% to discretionary purchases, like travel, hobbies, and restaurants
20% to retirement savings
It makes sense to pay down high-interest debts as fast as possible. Doing so should take priority over discretionary purchases and saving for retirement. Credit cards are the most common source, but any loans that charge 8% or more qualify as high-interest debt.
Once that debt is paid off, 20% of income should be allocated to savings. The five options listed below are good ways to build wealth, and several require very little effort.
1. Open a health savings account: Individuals enrolled in a high-deductible health plan can contribute pre-tax dollars to a health savings account (HSA). Those savings, as well as interest or investment gains earned on the principle, will not be taxed upon withdrawal so long as they are used for qualified medical expenses, like copays, prescriptions, and dental care. That means HSAs can increase your net worth by reducing taxable income and providing tax-free capital gains.
2. Open a high-yield savings account: The Federal Deposit Insurance Corporation (FDIC) says the national average interest rate on savings accounts is 0.42% annual percentage yield (APY). However, certain financial institutions offer high-yield savings accounts that pay more. For instance, Apple Savings (for consumers with the Apple Card) currently pays 3.9% APY, with no minimum account balance or monthly maintenance fees. At that rate, $1,000 will earn about $39 in interest each year.
3. Build an emergency fund: Experts generally recommend building an emergency fund that can cover three to six months’ worth of expenses. That figure will vary a little from source to source, but keeping cash stashed away for unexpected events is important. That advice will not add directly to your net worth, but it may prevent you from selling stock or taking on credit card debt to navigate challenging financial circumstances. Bonus tip: Keep your emergency fund in a high-yield savings account.
4. Buy and hold an S&P 500 index fund: The S&P 500(SNPINDEX: ^GSPC) is a bellwether for the U.S. stock market. It tracks the performance of 500 large companies that are essential to the American economy, including Apple, Microsoft, Amazon, and Nvidia. An S&P 500 index fund is an easy way for investors to own stock in 500 of the most influential companies in the world.
Importantly, very few professional fund managers outperform the S&P 500 — just 4% in the last five years — which makes it a smart choice for most retail investors. And while there is no guarantee an S&P 500 fund will increase your net worth in 2025, the index has been a profitable investment over every 20-year period in history, and it returned 244% over the last decade.
5. Buy and hold individual stocks: The U.S. stock market has historically been one of the best places to build wealth. Buying stocks requires more work than the other options listed here, and there is no guarantee that owning stocks will ever increase your net worth. But for investors willing to do the research, owning good stocks offers a chance at market-beating returns.
In closing, I have one last piece of advice to offer: Building wealth takes time. Sure, some people get lucky and make a lot of money quickly. But that is the exception, not the rule. For the vast majority of people, patience and prudent decisions are the secrets to building wealth.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
