Is net worth a good indicator of wealth?

It’s the best single number we have, because it counts everything you own and subtracts everything you owe. Income doesn’t do that. A family earning $250,000 and spending all of it can have a lower net worth than a teacher who has saved steadily for 30 years.

It has blind spots, though. Net worth hides how much of the money you can reach. Two families can both have $800,000, one in a paid-off house and one in a brokerage account. Only the second can pay for a surprise. That’s why liquid net worth exists.

It also depends on age and where you live. $400,000 is unusual at 30 and ordinary at 60, and it buys very different lives in Omaha and San Francisco.

Averages mislead, too. The average U.S. family had $1.24 million in 2025, but the median family had $215,900. Compare yourself with the median for your age on the median net worth by age page.