Net worth is a crucial measure of financial health. For Gen Z, who are just starting their careers, understanding how their net worth compares to others can provide perspective and motivation to build wealth.
According to a study by Kiplinger, net worth varies significantly by age. Individuals in their 20s usually have lower net worths as they start their careers, earn modest incomes and begin building assets like retirement accounts and real estate. In contrast, older generations, especially those in their 60s and 70s, generally boast higher net worths due to decades of savings, investment growth and asset appreciation.
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GOBankingRates outlined Gen Z’s net worth compared to other generations based on the study. Read on to see where you stack up compared to other people in different age groups.
Household Net Worth by Age Group
Here are the average and median household net worth by age group, sourced from the Kiplinger study. It is important to note that net worth varies significantly by age, reflecting financial growth over time:
- Under 35: Average $183,500 | Median $39,000
- 35 to 44: Average $549,600 | Median $135,600
- 45 to 54: Average $975,800 | Median $247,200
- 55 to 64: Average $1,566,900 | Median $364,500
- 65 to 74: Average $1,794,600 | Median $409,900
- Over 75: Average $1,624,100 | Median $335,600
- All ages: Average $1,063,700 | Median $192,900
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More Highlights From the Study
Homeownership and education level also play significant roles in determining net worth.
Data shows that homeowners have an average net worth of $1.53 million compared to $154,900 for renters. Additionally, individuals with a college degree have a higher net worth of $2 million versus $413,300 for those with only a high school diploma.
For Gen Z, investing in education and aiming for homeownership can significantly enhance long-term financial health.
Managing debt is another vital aspect of building net worth. Reducing liabilities such as student loans and credit card debt directly boosts net worth.
Financial advisors recommend prioritizing debt repayment while simultaneously building assets through retirement accounts like 401(k) plans, which offer employer matching and tax benefits.
Entrepreneurship also offers a pathway to increasing net worth. Nearly half of the top net worth households own a privately-held business, highlighting the potential of scaling a business to generate significant wealth.
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This article originally appeared on GOBankingRates.com: Net Worth for Gen Z: How Do You Stack Up vs. Your Generation?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
