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Family Net Worth Data

I was reviewing some interesting facts from the Federal Reserve’s 2010 Survey of Consumer Finances.  Feel free to add your observations.  Here are some of mine:

  • As expected, the high net worth of a few skew averages much higher.  Notice the median net worth and average net worth where the age of the head is less than 35 years old – $9.3 vs.  $65.3 thousand respectively.
  • Also notice mean net worth trending downward after the age cohort 55-64.  I would expect this to be due to retirees using their retirement funds.  However, I also suspect this only part of the story.  Noticing that the median net worth continues to increase, I would guess there is some effective tax planning amongst the high net worth individuals.
  • Also as expected, a college degree weighs heavily on your ability to accumulate high-net worth.
  • Consistent with other wealth studies I have seen, the self-employed have a much higher net worth compared to those working for someone else.
  • Notice the net worth differences between those owning their home vs. renting.  Homeowners have a mean net worth of $713,400 compared to renters with only an average net worth of $57,200.  While significant, this statistic could have many different stories as this is life stage issue as well (i.e. most rent before purchasing their home).
Median Net Worth Percentiles - FR SCF

From the Federal Reserve’s 2010 Survey of Consumer Finances

Highly recommend checking it out.  It’s a great source for family financial data.

{ 2 comments… add one }

  • clothedeconomist June 3, 2014, 12:53 pm

    does the rent statistic account for age variance? I assume most people that rent are younger and therefore would have much less net worth.

  • economicnudity June 3, 2014, 1:33 pm

    I don’t think it necessarily does leading to that larger variance.

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