What Does NetworthIQ Statistics Say about Net Worth?
I have been using NetworthIQ to track our net worth for several months now and find it’s a quite nice tool. However, for most of the time, I go straight to my account and update the numbers without paying much attention to what happened elsewhere. Last night, when I was broswing NetworthIQ, I noticed that their net worth statistics section has some interesting numbers on the relationships between age, income, education and net worth. Though the statistics only cover less than 5,000 users, the trend seems to be quite clear.
Age and net worth
It appears that NetworthIQ users on average have much higher median net worth than the national average across all age groups (there are only 13 users of age 70 and above, thus the numbers are well represented for that group). However, both statistics show that net worth peaks around age 65 when people, after decades of wealth accumulation, enter retirement.
NetworthIQ data also shows that the 25 to 34 age group owns half of the active users (2,452 out of 4,975), though their net worth is relatively smaller than other age groups. The way I look at it is that this may suggest that people in their 20s and 30s, who are also the majority of internet users, are more likely to use network tools such NetworthIQ to track and share their financial progress. This can be a good thing if we can interpret this as a sign that young people are paying more attentions to their own financial well-being.
Income and net worth
Education and net worth
|Education||Profile Count||% of Pop||Median Net Worth|
|Less than high school graduate||52||0.86 %||$3,000|
|High school graduate||131||2.17 %||$37,038|
|High school graduate with some college||660||10.93 %||$19,450|
|Associate degree||219||3.63 %||$49,200|
|Bachelors degree||2303||38.15 %||$75,000|
|Masters, professional, doctoral degree||1488||24.65 %||$197,754|
If there’s any doubt on how education (thus, income) will affect a person’s wealth, the data from NetworthIQ just confirms that higher education means higher personal income and, thus, higher net worth. This is also observed from the census data (use above link). I know there are many highly talented and motivated people who don’t need an advanced degree to make a fortune, but for working classes, a good education paves the path to a good-paying job and the ability to earn more from everyday job generally leads to higher net worth (the net worth grows almost exponentially with the income level).
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