Mean vs Median – Wealth by Age
For those who don’t recall statistical mathematics:
- Mean Net Worth is the sum total net worth divided by the number of households considered. This is commonly called an average. It is highly skewed by extremely wealthy individuals’ influence on the data set.
- Median Net Worth is calculated such that half of households considered are below and half are above the center. Moving to the middle of this data gives a more accurate picture of a typical American’s financial situation.
Because of the outsized wealth of a small proportion of people, the mean net worth of Americans is dramatically higher than the median.
Numbers Time
| Age Group | Median Net Worth | Mean Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35–44 | $135,600 | $549,600 |
| 45–54 | $247,200 | $975,800 |
| 55–64 | $364,500 | $1,566,900 |
| 65–74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
What this says about our culture, the reader must decide.
-Zac
