What Is Net Worth?
Net worth is the value of all assets minus all liabilities. For households, it includes savings, investments, home equity, and retirement accounts, minus debts like mortgages and loans. It is a common measure of financial health.
Median and Average Net Worth for White Households
According to the Federal Reserve’s Survey of Consumer Finances, white households in the United States have a median net worth significantly higher than the overall national median. Average net worth is higher still, reflecting the concentration of wealth at the top. These figures are based on data from the Federal Reserve.
Key Drivers of the Wealth Gap
Factors include historical access to homeownership, education, inheritance, and labor market opportunities. Differences in asset ownership and debt levels also play a role. Understanding these drivers helps contextualize wealth statistics across racial groups.
