How do you stack up? (4/24/06)

Want a real eye-opener? I recently stumbled across a survey produced by the Federal Reserve Bulletin that categorized statistics on net worth of U.S. families in 2004. The categories are broken down by age, education, region, housing status, etc. I thought this would be an opportunity for you to find out how you stack up against others in the U.S. with regards to net worth.

Net Worth: First, you need to determine your net worth. Net worth = Total Assets – Total Liabilities. In other words, add up everything you own (bank accounts, investments, retirement accounts, home, cars, boats, etc.) and subtract all of your debt (mortgage, car loans, credit card debt, student loans, stock margin loans, etc). This is your net worth. Do not count the following items as assets in your calculation: furniture, old jewelry, pets, baseball card or stamp collections, children, or anything else that you may deem of significant sentimental value to you only.

The bulletin lists the Median and Mean for each statistical category. Because there is a small percentage of very rich people in the U.S., the Mean (or average) is skewed. Therefore, I’ve included the Median figures only. The Median is the midpoint, meaning half the people surveyed are above the Median and half are below. Researchers found that the Median was a more accurate figure with which to compare yourself. Without further delay, here are the numbers:

Category (Median Net Worth)
Age
Less than 35: $14,200
35-44: $69,400
45-54: $144,700
55-64: $248,700
64-74: $190,100
75 and over: $163,100

Education
No H.S. diploma: $20,600
H.S. diploma: $68,700
Some college: $69,300
College degree: $226,100

Race
White (non Hispanic): $140,700
Non-white: $24,800

Region
Northeast: $161,700
Midwest: $115,000
West: $94,800
South: $63,800

Housing Status
Owner: $184,000
Rent or other: $4,000

Hopefully, these statistics aren’t a shock to you. If they are, you may be behind the curve slightly. Try to focus on the Age category. The most beneficial element to building a good net worth is time. Therefore, I think Age is the most important category if you’re going to compare yourself to these statistics. The other categories do not factor in age, but are interesting to see.

While net worth doesn’t make or break your financial situation, it’s a good indicator of your overall financial health.