This data does not account for the super high net worth households. Accounting for the super rich and offshore wealth would further skew wealth distribution in America. Voluntary American philanthropy is a tradition where those  with wealth can support community building. When we do community building right, we can increase the well-being of more of our neighbors. American philanthropy can be an agent for good. As our government becomes more conflicted and unable to act, American philanthropy is increasingly important as our primary vehicle for community betterment.

We also have new data from the Federal Reserve's Survey of Consumer Finance. The Survey is one of the definitive assessments of American finance and wealth holding. The Survey dates back to the 1980s but we are focusing on the last four Surveys:  2007, 2010, 2013 and 2016. We selected these years because they include the Great Recession and its recovery. There are many data points but we want to highlight these three:  educational attainment, work status and assets by household wealth.

Average Net Worth by Educational Attainment

Education has always been a pathway to personal success and wealth formation. The good news is all education groups show post-recession improvement with the 2016 Survey results; however,  between 2013 and 2016, those with a college degree showed the greatest improvement. They exceed wealth holding pre-Great Recession (before 2007). The right education, skills and experience are now fundamental to personal success and societal wealth formation.

Average Net Worth by Work Status

Owning a business is no guarantee for personal wealth. However, one of the greatest pathways to estate formation is through business ownership. All work status categories experienced wealth growth between 2013 and 2016, except those not working, which saw a 2013-2016 decline. The self-employed once again approached $2.5 million in average net worth. Fostering entrepreneurship at all levels, from main street businesses to high-tech manufacturing, is important to communities seeking to grow stronger economies and create more broadly shared wealth. We explored this topic more deeply here.

2016 Assets by Net Worth

The assets that create estates vary based on the net worth of different groups. For Americans with less net worth, housing and non-financial assets predominate as the chart above illustrates. As net worth rises, stocks, bonds, other financial assets and business ownership predominate. This pattern correlates strongly with both educational attainment and work status. Use this  link to access Assets by Net Worth charts for 2007, 2010 and 2013.

The good news (as measured in household wealth) is that America continues to heal from the ravages of the Great Recession. The bad news is that the distribution of this recovery focuses on those with education, skills, experience and on those who own businesses. For the majority of Americans who work for someone else, recovery is more challenging to recognize .   Growing community philanthropy is foundational to creating the capacity to improve these trend lines. Helping foundations move into strategic grant making and impact or mission-aligned investing can provide pathways to community building that empowers more of our neighbors to achieve greater economic choice and security. 

Your insights, comments and even push back are welcome. Drop me a comment at [email protected].