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Ever wonder what your net worth is?
In a technical sense, it’s the sum of an individual’s financial account balances, the value of their vehicles and real estate minus the sum of their debt, such as mortgages, credit cards, auto and student loans, financial firm Empower explains. A simpler way to say it is “assets minus liabilities.”
If you’re like 25 percent of Americans, you’ve never calculated your net worth, according to financial services company Western Southern. And that, experts say, is a sign that you may not be as aware of your finances as you should be.
“Knowing and understanding net worth can give a more well-rounded picture of someone’s financial standing versus simply looking at a bank account balance,” said Leslie Tayne, a personal finance expert and head attorney at Tayne Law Group, told The Independent in an email.
“[It] can also help you track your financial progress over time and help you see whether you are building assets and paying down your debt, which can help you with your long-term financial goals.”
Knowing your net worth – and how it compares – helps consumers know if they’re on track for a financially-sound future or falling behind.
Checking-in on your net worth
The average net worth of Americans ranges by age from $162,744 for those in their 20s to $1,412,514 for those in their 90s, according to a 2026 analysis by Empower.
Somewhat predictably, net worth was lowest for those just starting adulthood. Net worth peaked around age 60, then declined from aged 70 into the 90s as users drew money from savings and investments to fund their retirement.
Here is the average net worth for every generation:
- Generation Z (1997-2012): $162,744
- Millennials (1981-1996): $379,562 – $853,374
- Generation X (1965-1980): $853,374 – $1,748,689
- The Silent Generation (1925-1945): $1,412,514 – $1,478,003
- The Baby Boomer Generation (1946-1964): $1,478,003 – $1,748,689
How the generations compare with money
As newcomers to retirement savings, Gen Z’s average balance is far behind older generations. That’s not for a lack of trying, though.
The youngest adult generation bumped up contributions to their IRAs – a retirement account individuals can open without an employer – by 65 percent over the past year, according to a 2026 study from financial services firm Fidelity.
The Silent Generation is on the other side of the retirement spectrum – its net worth remains above $1 million per person, on average.
Combined with boomers, the two generations have around $105 trillion in net worth. They’re passing about a trillion each year to younger generations, a 2025 analysis from investment advisor firm GW&K.
“Together they’re powering something the US has never seen before: a live, rolling transfer of around $1 trillion a year – a private stimulus that could keep consumer spending humming through at least the next decade,” GW&K wrote last December.
Making good financial choices
Net worth is not an end-all metric to determine financial health, Tayne noted. While big bank balances can bring peace of mind, certain habits are critical to overall money health.
“It’s helpful specifically for long-term financial progress, but sometimes can offer a jaded snapshot,” she said.
Those with a small net worth may have excellent financial well-being because they pay debts consistently and on time, Tayne said.
“Someone early in their career may have low net worth because they have significant student debt and a modest income ,but could still be a financially healthy individual by making all their payments on time and consistently,” she said.
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