Money Matters: How 35-44-Year-Olds Stack Up Financially

The Federal Reserve's data shows that families usually make more and own more as they reach middle age. For those between 35 and 44, this is a big time to build financial strength. Knowing how your money compares to others your age can help you see where you stand and what you can do better.

Income and Age

In 2022, the middle income for households aged 35-44 was $86,473. This is more than most other age groups, except for those aged 45-54, who make a bit more at $91,878. On the lower end, people 75 and older make about $49,073, mostly from retirement money like pensions and Social Security.

Financial Challenges

The 35-44 age group is right before their highest earning years. They often have to balance many money demands, like:

Mortgages
Childcare
College tuition

Income Gaps

The data also shows big money gaps in America. For example:

People with a college degree make a lot more than those without a high school diploma.
The middle group includes high school graduates and those with some college education.

Homeownership

Owning a home also makes a big difference. Homeowners make more than twice as much as renters. Homeownership can help with budgeting and building savings, but it's not always the best choice for everyone. Renting can be better in some cases.

Net Worth

Income is just part of the story. Net worth, which is what you own minus what you owe, shows how much money you keep. For those aged 35-44, the middle net worth is $135,300. This includes things like:

Homes
Cars
Retirement accounts
More

Minus debts like:

Mortgages
Loans

Financial Security

Two households can make similar amounts, but their financial security can be very different based on how they spend money. Think of income as water flowing into a bucket. One household might have a steady stream but a bucket with holes due to unchecked spending. Another might have a smaller stream but fewer holes, leading to more savings and financial stability.