Financial Expert Defines Net Worth Brackets for American Economic Classes
A prominent financial analyst has provided clear definitions for what net worth levels categorise American households as poor, middle-class, or wealthy, drawing on the latest data from the Federal Reserve Board's Survey of Consumer Finances. Economics expert and author Geoff Schmidt explained to Benzinga that while these figures vary across different regions of the United States, general benchmarks can be established to understand economic standing.
The Net Worth Thresholds That Define Economic Status
According to Schmidt's analysis, a household with a net worth of approximately $20,856 or less would typically be considered poor. Individuals or families falling into this category are unlikely to own their own home and must allocate most of their capital toward essential expenses such as groceries, rent, and utility bills.
In contrast, a middle-class household possesses an average net worth of around $193,000. This economic bracket usually includes home equity, savings accounts, and retirement funds like a 401(k), providing a degree of financial security and stability.
The Federal Reserve benchmarks indicate that a well-off family would have a net worth of approximately $1.6 million. This level of wealth typically allows for disposable income that can be directed toward family vacations, college savings plans, and regular charitable contributions.
Wealthy and Elite Financial Categories
To be categorised as truly wealthy, a household's net worth would need to approach $3.8 million. This substantial financial position often enables the ownership of multiple properties and significant investment opportunities beyond basic necessities.
Those in the top one percent of wealth holders in America are likely to possess a net worth of $11.6 million or more. This elite category enjoys considerable financial freedom and luxury, with resources far exceeding typical household requirements.
Diverging Public Perceptions of Wealth
Schmidt acknowledges that his conclusions differ somewhat from findings in Schwab's 2024 Modern Wealth Survey. That research indicated that most Americans consider an average net worth of $778,000 as "financially comfortable," while $2.5 million signifies wealth, and $11 million represents elite wealth status.
The current average annual wage in the United States stands at $82,933 according to OECD data, placing the country fourth globally behind Luxembourg, Iceland, and Switzerland, and notably ahead of Canada ($69,417) and the United Kingdom ($63,691).
Political Context and Economic Concerns
Despite these wage statistics, many Americans continue to express unease about the state of the economy. Recent polling indicates significant public desire for President Donald Trump to address affordability concerns more effectively.
A CNN/SSRS survey conducted earlier this month revealed that 55 percent of respondents believe Trump's policies during his first year back in office have worsened economic conditions, compared to 32 percent who feel they have brought improvement. This represents a challenging verdict on his reciprocal tariffs program, which aims to renegotiate international trade terms.
Notably, 64 percent of those surveyed stated that the president has not done enough to reduce the cost of living—a key issue that influenced many voters to support him over former Vice President Kamala Harris in November 2024. Even among Republican respondents, 42 percent acknowledged that more action is needed to lower everyday prices.
Political Responses and Future Directions
With midterm elections approaching in November, President Trump is seeking to address these perceptions through public engagements focused on economic matters. Following a December visit to Pennsylvania where he discussed the economy, the president plans to travel to Des Moines, Iowa, to continue addressing this central theme.
During his previous appearance at a casino in Mount Pocono, Pennsylvania, Trump departed from prepared remarks to accuse Democrats of promoting what he termed an "affordability hoax." He assured his audience in the Keystone State that "prices are way down" and that concerns were unwarranted.
The president faces continued pressure on economic issues, having repeatedly promised voters during the presidential election that he would initiate a new "golden age," revitalise manufacturing sectors, and create substantial employment opportunities. These pledges included assurances that Americans would soon have more money than they knew how to spend—a vision that many feel remains unrealised amid ongoing economic challenges.
