Your net worth may not be something you think about very often. But if your goal is to retire securely, it's important to work on growing not just your 401(k) or IRA balance, but your net worth. A 2022 Aspen Institute report found that about 13 million Americans, or 10.4% of U.S. households, had a negative net worth. Clearly, these statistics are a bit dated, but they're based on an analysis of Federal Reserve data that only comes out every few years. Where to invest $1,000 right now? Our analyst team jus ...

Core Insights - Approximately 13 million U.S. households have negative net worths, representing about 10.4% of all American households as of 2019 [1][3] - The 2022 Survey of Consumer Finances indicates that families in the bottom quarter of wealth distribution averaged -$5,300 in net worth, an improvement from -$15,700 in 2019, yet millions still start from below zero [4] - The demographics of households with negative net worth reveal that they typically have a median income of around $39,700, compared to the national median of approximately $59,000 [5] Demographics and Trends - Younger Americans are disproportionately represented in the negative net worth group, often due to student loans and lack of savings or home equity [6] - Disadvantaged groups are more frequently found in negative-net-worth statistics, highlighting ongoing racial and generational wealth gaps [6] - Key factors contributing to negative net worth include lower incomes, younger household heads, and higher student loan burdens [9]