Net Worth for Gen Z: How To Tell if You're Poor, Middle Class or Rich
Luxury apartment tours and videos promising six-figure side hustles rack up millions of views, but social media rarely shows the full financial picture.
Net worth offers a different lens by measuring what a person owns after subtracting what they owe. Here's how to tell if you're poor, middle class, upper-middle class or rich.
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Get Going: Start Growing Your Net Worth With Smarter Tracking
Know the Benchmark
The first step to figuring out where a net worth stands is knowing the benchmark.
According to the Federal Reserve's Distributional Financial Accounts, the median net worth for households headed by someone under age 35 is about $39,000.
Households well below that benchmark are generally earlier in their wealth-building journey, while those well above it have moved closer to upper-middle-class or wealthy territory.
That number isn't a finish line. It's a snapshot. Net worth measures everything a person owns minus everything they owe, making it a useful way to track financial progress.
Whether someone starts above or below the median, the goal is the same: keep building wealth over time.
Reach Positive Net Worth
The first meaningful financial milestone isn't $100,000. It's $0.
That’s because many young adults begin their careers with student loans, car loans or credit card debt, leaving them with a negative net worth. Reaching the point where assets equal or exceed liabilities marks a turning point.
As odd as it may sound, a $0 net worth can be a very realistic goal for many Gen Zers,” said Laci Graul, a financial advisor at Edward Jones. “If their net worth can be brought to $0 in five years, that's a win.”
Once that milestone is reached, she said, building toward a $50,000 net worth becomes a realistic next step.
Build Middle-Class Wealth
Growing a net worth doesn't usually come from one big break. It comes from repeating the right habits month after month.
Ralph V. Estep Jr., an accountant and host of the podcast "The Content Creator’s Accountant," said three things matter most: consistency, margin and intentionality.
“You're not just hoping money accumulates,” Estep said. “You're telling it where to go. Income matters, but I've seen people earn $80,000 a year and have nothing to show for it and I've seen people earn $45,000 who are quietly building something real.”
Let Money Compound
Keep investing long enough and those steady contributions can start producing results that are easier to see.
Graul said clients often begin noticing the effects of compounding once they have about $30,000 invested.
She also finds that after three to four years of making automatic monthly contributions, many start seeing their investment earnings make a meaningful contribution alongside the money they're adding themselves.
Keep More of It
Building wealth isn't just about earning more. It's also about avoiding expensive setbacks.
“The fastest way up that ladder isn't a bigger salary,” said Nick Avila, founder of United Debt Relief, but no longer carrying a balance. Using the average interest rate, Avila calculated that "paying off that card is a guaranteed 21.52% return, better than almost anything an advisor can sell you.”
Reducing credit card debt also creates a stronger foundation for building wealth over time, especially as income and investments begin to grow.
Bottom Line
The labels “poor,” “middle class,” “upper-middle class” and “rich” aren't permanent.
Net worth changes as debt is paid down, savings grow and investments have time to compound.
Rather than chasing a specific label, focus on the next milestone. A negative net worth can become zero. Zero can become the $39,000 median for households under 40. And that can grow into far more over time.
“Real wealth is quiet,” Estep said. “It's the number on your balance sheet, not the number of likes on your lifestyle. The goal isn't to look like you have money. The goal is to actually have it.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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