Money is weird right now. If you look at the federal data, the net worth of us as a collective nation has never looked better on paper, yet if you ask the guy buying eggs at the grocery store, he’ll probably tell you he’s broke. It’s a massive paradox. According to the Federal Reserve’s Survey of Consumer Finances, the median net worth of American households shot up by 37% between 2019 and 2022. That is the largest three-year increase on record.
But figures lie. Or rather, they don't tell the whole story.
Wealth isn't just about what's in your checking account. It's a calculation of everything you own—your house, that dusty 401(k), the car in the driveway—minus everything you owe. When we talk about the net worth of us, we’re talking about a country that saw home values skyrocket during a global pandemic while many people were simultaneously racking up credit card debt just to keep the lights on. It’s messy. It’s uneven. And honestly, it’s a bit of a localized phenomenon depending on whether you bought a house in 2012 or 2022.
What's actually driving the net worth of us?
Most people think it's their paycheck. It isn't. The real engine behind the surge in American wealth over the last few years has been the housing market. If you own a home, your net worth likely exploded. Real estate is the primary asset for the middle class, and with home prices hitting record highs in 2024 and 2025, that "equity" looks great on a balance sheet.
However, there's a catch. You can’t eat your house.
For the average family, having $400,000 in home equity feels good, but it doesn't help with the $5 gallon of milk. This is where the disconnect happens. We are "wealthy" in assets but "cash-poor" in reality. The Fed’s data shows that while the median net worth is around $192,900, the gap between the top 10% and the bottom 50% is still a yawning chasm. The bottom half of Americans hold only about 3% of the total wealth in the United States. Think about that for a second.
Then you have the stock market. Roughly 58% of American households own some form of stock, whether it’s through a direct brokerage account or a retirement fund. When the S&P 500 performs well—as it has shown resilience despite inflation—the net worth of us climbs. But again, this wealth is concentrated. If you don't have a 401(k), you're not invited to the party. You’re just watching the party through the window while paying higher rent.
The age gap is becoming a wall
If you’re 65, you’re likely sitting on a mountain of wealth compared to a 25-year-old. That's normal, right? You work, you save, you grow. But the disparity has widened. The median net worth for households headed by someone aged 65–74 is roughly $410,000. For those under 35? It’s closer to $39,000.
Student loans are the primary culprit here.
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We’ve created a system where young people start their financial lives in a hole. Even with recent attempts at debt relief, the "net" in net worth of us remains negative for a huge portion of the Gen Z and Millennial workforce. It’s hard to build wealth when your first $500 every month goes to a loan servicer instead of a Roth IRA.
Why the "Average" is a total lie
Averages are dangerous in economics. If Jeff Bezos walks into a dive bar, the average person in that bar is a billionaire. That’s why we look at the median. The median is the true middle. While the average net worth in the U.S. is over $1 million per household, the median is nowhere near that.
Wealth is top-heavy. The top 1% of households hold about 30% of all wealth.
I was talking to a financial planner recently who noted that many of his clients don't feel rich even with a million-dollar net worth. Why? Because the cost of living has scaled alongside asset growth. If your house doubled in value, so did the property taxes and the cost of the guy who fixes the roof. It’s a treadmill.
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Debt: The silent net worth killer
You can't talk about the net worth of us without talking about the $17 trillion in household debt Americans are carrying. It’s a staggering number. Credit card balances have surpassed $1.1 trillion. Interest rates on those cards are often north of 20%.
- Credit Cards: The most expensive way to borrow.
- Auto Loans: People are taking out 84-month loans for trucks that cost $70,000.
- Mortgages: The "good" debt, but only if you locked in a 3% rate.
If you have $50,000 in savings but $60,000 in high-interest debt, your net worth is -$10,000. Simple math. But a lot of people ignore the right side of the balance sheet. They see the savings account and think they’re doing okay. They aren't. Inflation has acted as a hidden tax, eroding the purchasing power of every dollar you’ve managed to save.
How to actually move the needle on your own numbers
Forget the national statistics for a moment. They're just a benchmark. If you want to increase your slice of the net worth of us, you have to be aggressive about where your money lives.
- Kill the high-interest vampires. Anything over 7% interest is an emergency. Pay it off before you even think about "investing" in the next hot stock. You can't out-earn a 24% APR credit card.
- Automate the boring stuff. Wealth isn't built on big wins; it's built on the $200 that leaves your paycheck before you see it.
- Audit your "Lifestyle Creep." Every time you get a raise, your expenses shouldn't follow. If they do, your net worth stays flat while your stress goes up.
The reality of the net worth of us in 2026 is that the middle class is being squeezed into two different directions. There are those who own assets (houses, stocks, businesses) and those who sell their time for a wage. The asset owners are winning. The wage earners are struggling to keep up with the cost of being alive.
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Tangible steps to take right now
Calculating your own net worth is the first step toward changing it. Grab a piece of paper. Total up your bank accounts, retirement funds, and the estimated value of your home or car. Then, list every single debt. Subtract the debt from the assets.
If that number is negative, don't panic. Most of America is right there with you.
The goal isn't to be "average" because the average American is heavily in debt and under-saved for retirement. The goal is to deviate from the norm. Focus on acquiring appreciating assets—things that go up in value while you sleep. Stop buying depreciating assets on credit. It sounds like basic advice, but if it were easy, the median net worth of this country would be a whole lot higher than it is.
Track your progress quarterly. Don't look at it every day; the market is too volatile for that. Just keep your head down, keep your debt low, and make sure you're actually owning things instead of just renting a lifestyle.