Core Insights - Net worth is a crucial indicator of financial health, representing the difference between total assets and total liabilities, and reflects financial management skills [2][3] Net Worth Calculation - To calculate net worth, one must list all assets (savings, investments, real estate) and subtract liabilities (mortgages, loans, credit card debt) [3][7] Comparative Analysis - In 2021, median net worth figures were reported as follows: upper-income households at $803,400, middle-income households at $204,100, and lower-income households at $24,500 [4] - The average net worth in the U.S. was $1,063,700 in 2022, marking a 23% increase from 2019, while the median net worth rose by 37% to $192,200 [5][7] Asset Distribution - Common asset holdings among Americans in 2022 included checking accounts (98.6%), vehicles (86.6%), primary residences (66.1%), and retirement accounts (54.3%) [5] Income Level Breakdown - Average and median net worth by income percentile in 2022: - Less Than 20%: Average $129,700, Median $14,000 - 20% to 39.9%: Average $218,700, Median $71,000 - 40% to 59.9%: Average $385,400, Median $159,300 - 50% to 79.9%: Average $636,800, Median $307,200 - 80% to 89.9%: Average $1,264,700, Median $747,000 - 90% to 100%: Average $6,629,600, Median $2,556,200 [6][8] Improvement Strategies - Enhancing net worth involves increasing assets and reducing liabilities through regular savings, long-term investments, and efficient debt repayment [9]