What is the average net worth by state?

What is the average net worth by state?

08.23.2023

Tracking your net worth is a common way to gauge your financial health. You can determine your net worth by subtracting all of your liabilities (debts) from all of your assets (things you own).

We set out to find how different states’ residents rank according to their net worth. This information can help you determine if you want to take additional financial steps, like saving or investing more.

Following is the average and median net worth of people who use the free Empower Personal DashboardTM, broken down by state.

Net worth breakdown by state

It turns out that residents of Connecticut have the highest average net worth of any state in the country. The top five states in average net worth are Connecticut, California, Vermont, New Jersey and Washington.

On the opposite end of the spectrum, residents of North Dakota have the lowest average net worth of any state in the country. In addition to North Dakota, West Virginia, Mississippi, Utah and Louisiana round out the five lowest states in average net worth.

Following is a full list of the average and median net worth of residents in every state, from the highest to the lowest average net worth.

Rank

State

Average net worth

Median net worth

1

CT

$878,513

$81,332

2

CA

$787,755

$85,581

3

VT

$782,375

$82,598

4

NJ

$775,885

$76,167

5

WA

$766,158

$127,823

6

MA

$742,793

$88,791

7

NH

$687,146

$82,813

8

IL

$660,233

$68,218

9

NY

$651,131

$59,404

10

VA

$646,839

$78,373

11

NV

$629,326

$19,998

12

SD

$617,773

$50,275

13

FL

$615,886

$22,600

14

CO

$611,234

$72,364

15

PA

$608,886

$47,229

16

MN

$608,818

$85,813

17

TX

$599,236

$47,019

18

NC

$597,834

$58,630

19

AK

$597,100

$83,688

20

MD

$595,772

$54,884

21

OR

$578,196

$61,679

22

IA

$576,512

$49,094

23

WY

$565,122

$35,304

24

WI

$557,244

$64,300

25

AZ

$546,419

$41,324

26

DC

$543,254

$68,865

27

ID

$542,760

$33,325

28

SC

$542,638

$34,560

29

DE

$536,089

$30,167

30

MI

$534,030

$44,828

31

NM

$524,490

$41,513

32

OH

$523,834

$50,123

33

RI

$520,574

$33,772

34

GA

$511,415

$32,775

35

KS

$510,458

$52,659

36

TN

$509,153

$31,101

37

ME

$507,578

$50,000

38

KY

$503,656

$26,964

39

NE

$494,165

$40,019

40

MO

$491,909

$40,899

41

MT

$477,140

$33,706

42

IN

$472,002

$36,483

43

HI

$450,577

$36,121

44

AL

$450,511

$20,241

45

AR

$441,629

$17,546

46

OK

$423,271

$19,150

47

LA

$422,908

$12,837

48

UT

$397,901

$22,280

49

MS

$375,314

$7,767

50

WV

$339,618

$10,311

51

ND

$334,058

$19,456

Anonymized data from Empower Personal DashboardTM as of August 2023

Trends and observations

A closer look at the list reveals that there are more East Coast states in the top 10 than West Coast states. Six of the top 10 states are located on the east while only two — California and Washington — fall on the west.

Not surprisingly, many of the states where families have the highest net worth also rank highly in average 401(k) balances. This data points to the valuable role of 401(k) savings (and overall retirement savings) in building net worth.

How to increase your net worth

Regardless of where your state ranks in average net worth, you can still improve your own financial standing. Here are a few ideas to consider:

Pay off debt

Go back and look again at the definition of net worth at the beginning of this article: all of the assets you own minus the liabilities and debts you owe. One of the best ways to increase your net worth is to decrease your debt.

Credit cards may be a good place to start since they usually carry the highest interest rates. Paying them off not only lowers the debt side of your personal financial ledger, but it also reduces the amount of interest you must pay. Money saved in interest can go toward building net worth.

Save more for retirement

As noted above, residents of states with high average 401(k) account balances and total retirement savings also tend to have high average net worth. One reason is because money saved in a tax-advantaged retirement account like a 401(k) is able to grow on a tax-deferred basis, which can result in more potential growth over the long term.

Read more: How do you achieve a high net worth? Hint: It’s about more than just income

Another reason is that many employers offer to match employees’ retirement account contributions. An employer match is the closest thing there is to a “free lunch.”

Reduce your liabilities and expenses

Expenses are part of life. Everybody has to pay for a place to live, food to eat, clothes to wear and a car to drive.

The key is distinguishing between necessary and excessive expenses. Consider taking a close look at where you spend your money; you might be surprised at what you see.

This isn’t suggesting that you live a bare-bones lifestyle with no comfort or entertainment expenses. You may consider the 50-30-20 budget, which allocates a percentage of your income to essentials, enjoyment and savings. Aligning your spending with your values and goals could help you save more, and boost your net worth over time.

Our take

In short, a way to help build your net worth is saving more and spending less.

That starts with knowing where you stand. You can help get clarity on your financial life and goals using Empower’s award-winning tools for money management. Millions of U.S. households rely on the tools to:

  • Keep track of their true net worth
  • Review categorized transactions from all financial accounts
  • Analyze investments and uncover hidden fees
  • Evaluate retirement readiness with the Retirement Planner

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Todd Burnaford

Contributor

Todd Burnaford is a Senior Financial Professional at Empower. A CERTIFIED FINANCIAL PLANNER™ professional, he provides a wide range of financial planning services for clients who are enrolled in the Personal Strategy managed asset program.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.

Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.

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