hey D rollers welcome back to the channel so the FED recently released a study they put out every three years that tracks the average net worth income and debt of families in the United States and I'm going to show you what that is today we're going to focus on net worth and we're going to look at it in particular by age you know I'm not really into comparing myself to other people because that you know can just get depressing but I do think it could be helpful to kind of get a a general sense as to where we stand and the data is just interesting in fact you're not going to believe the average net worth so let's dive right into it so this is uh the fed's website and we're going to look at a couple of charts as you can see here I will leave a link uh to this below the video this happens to be before tax family income the average which is what the mean is you can see here in the drop- down they have a ton of different statistics and data that you can look at as I said we're going to focus on net worth and be ready for these numbers I I was stunned here we go so what we're looking at is the average net worth of all families in the United States it's in $222 so if we go all the way back to 1989 in $222 meaning adjusted for inflation for All Families the average net worth was about $436,000 today all the way to the right look at that $ 1, 59,000 that's the average I was stunned by that number now before we get too depressed keep in mind that this mean or average you know it's what we calculated in grade school right um it it's you know where you add up in this case all the wealth and you divide by the number of families the it's an interesting data point but the problem is this the Elon musks and Warren buffets of the world with their hundreds of billions of dollars skew the results and so in many cases it can be more useful to look at the median which would be where that point where you know half of the households have more and half have less we're going to look at the median but before we get there let's let's look at the average in one other way we can look at it based on age and we're going to uncheck this let's start with the less than 35 so this is folks younger than 35 again this is the average we'll look at the mean in just or the median in just a second the thing that struck me about this we can see the average $183,000 in net worth the thing that struck me about this is look at the jump from just three years ago I mean it more than doubled and you know a lot of that no doubt from the stimulus and uh the stock market 2022 was rough but uh there's been a lot of of uh uh growth in in Investments uh there there was growth in the value of homes so to the extent that younger folks have homes many don't but the jump in net worth for that age group is as you can see the highest you know three-year change we've seen going back to 1989 and in fact if we look at the next uh age up 30 35 to 44 there was a jump but as you can see boy it's you know not nearly as impressive of course their starting point was a lot higher just over half a million $500,000 uh and they had a nice jump to 548 but boy not nearly the kind of jump that the the the younger folks had and that's a trend uh that kind of continues 45 to 54 was basically flat uh and 55 to 64 went up but again you just don't see those big jumps now we can look at these others briefly uh 75 and older by the way the thing that struck me about both of these age groups you'll notice they both went up and not as much as the the under 35 crowd but still big jumps and these are folks in retirement these are folks that by and large aren't working and are in theory spending down their their money but look at that still had pretty sizable jumps in net worth uh in 3 years so now let's go to uh we're going to we're going to go back to uh All Families let's look at the median I think this is probably the most useful for comparison and a couple things to point out the median that's where half of the families have a higher net worth and half have a lower net worth 192,000 that's across all age groups uh two things that that struck me here one is again a nice jump from just three years ago 141,000 up to 192,000 that's over about about a third 33% jump but the other thing is it's only now in 2022 that we we surpass the at the median uh net worth back in 20 in 2007 obviously it it fell quite a lot during the Great Recession but it's taken us 15 years to get back above that point now we passed it pretty nicely uh 192 compared to 173 but boy that's a long time to to get back to where we were now again that's looking at all families uh when we look at by age group the numbers are fascinating uh so we're going to untick them we'll start with the younger folks those uh under 35 again just like we saw with the averages the median man what a massive jump from $116,000 just three years ago to to 39,000 you know I mean that's like tripling and you can see that it's the biggest jump I mean by far going back to 1989 and it now far surp surpasses the highs of say 2004 or even 1995 uh so the last three years have been you know very good for the the younger crowd the folks underage uh 35 big big jump now I can tell you right now it the data doesn't look like that for older for the older uh uh a age groups we'll start with 35 to 44 now again a nice jump from 105 to 135 but but they're basically just getting back to where they were more or less 2007 they were at 126,000 in 01 they were at 131 going back all the way to 1989 they were at 130 and and now 135 so they they basically haven't improved much if at all since 1989 you know we're talking over 30 years I mean it's good that they've gotten back to that point uh but it's been a struggle and I I my theory is is that the Great Recession 078 and9 hurt this age group uh the most perhaps and certainly a lot more than folks that that today are younger than 35 many of whom you know weren't even in the workforce during the Great Recession uh and so I think uh this age group is really sort of just now digging itself out of the Great Recession whole uh it's good that they're there but boy it took a while huh uh if we go up to to this age group we could see 45 to 54 another big jump they were also hurt by the Great Recession and we can see they're still not back there yet 07 they're at their median net net worth was 264,000 and you know it's close now it's 246,000 but they're still not there so this age group seems to have been hurt even more by the Great Recession and they're still trying to recover and if we go here to the 55 to 64 group it's interesting they've recovered from the Great Recession they're now at 3 64,000 versus 363 so they've sort of broken even uh but they're still behind the 2004 number of 395,000 a lot of that could be real estate you know the the the the real estate values as you may recall back then were just going through the roof and it continued past 2004 but at 2007 and then thereafter obviously uh real estate was a took a big hit and so uh that's a big part of folks net worth and uh and so they're really sort of still digging themselves out of that hole uh from the Great Recession if we get to 65 and uh to 74 uh I think they they've obviously done a little bit better a big jump in the last three years right from 308 to 410 um uh probably a big part of that is uh investment returns they're now entering in or entering retirement um you know they may have they also may have had potentially more equity in their homes when the Great Recession hit H potentially depending obviously it's going to vary from household to households but but maybe they got through that a little bit better than the 45 to 64 uh age group uh but again it's interesting that their net worth continues to climb even as they're in the retirement age and if we go to the last one again uh they've gone up as well even as they continue presumably to spend money in retirement they're at the highest median net worth at least going back to 1989 uh 2016 was pretty good 32 6,000 uh but now it's 334 so even as they spend money in retirement their overall median net worth is going up uh so interesting numbers obviously uh uh a big improvements across all ages both mean and median it will be interesting to see the next three years as we fully digest the difficult 2022 stock market of course we don't know what obviously uh 24 is going to look like uh or or 25 but it'll be interesting to see how these numbers change over the next 3 years as I mentioned there's a ton of data in here you can look at average net worth or excuse me average debt across all families one thing that struck me about debt by the way is if you look at age of reference person and then you look at the 75 or older these are folks that are retired right they still have a a median this is median uh debt of 36,000 if you go to average uh it jumps to 90 4,000 this is folks you know 75 or older but a lot of data here to digest as I said I will leave a link to this below uh the video and there you go average and median net worth has gone up I think significantly in the last three years particularly for you folks that are under the age of 35 but it's they've gone up well for every age uh group uh so there you go let me know if you have any questions leave them in the comments below and until next time remember the best thing money can buy is Financial Freedom
