Regardless of whether we admit it, we’re all a bit curious (and maybe competitive) about how we stack up economically. Are you really middle class? If so, where do you stand within that group?
In a 2022 Gallup poll, 38% of Americans identified themselves as “middle class,” 14% as “upper-middle class” and only 2% as “upper class.” Almost half of Americans as a whole believe they’re “working class” (35%) or “lower class” (11%).
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Respondents to the Gallup poll were not provided with definitions of these social classes, but typically they are divided by income or net worth.
The U.S. Census Bureau, splits income data into quintiles, which are commonly labeled as different social classes. For the purposes of this article, those with an income in the bottom 20 percentile will be identified as lower class, followed by lower-middle class (up to 40th percentile), middle class (up to 60th percentile), upper-middle class (up to 80th percentile) with the remainder considered upper class.
Where does your household rank?
Where you rank by income
According to the Census Bureau’s Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows:
Some finance experts prefer to view classes in terms of net worth because they believe it accounts for people’s financial habits. If you have a high income but spend much of what you make, you may not have much to show for it. Based on U.S. census data from 2021, here’s the median net worth of each class:
To get a more granular look at how you stack up, you can use the Pew Research Center’s American income calculator, which adjusts for the cost of living based on your location and size of your household. It can also determine where you rank in relation to other Americans of the same age, race or ethnicity and who have the same level of education and marital status. While the data is from 2018, it can still provide interesting insights.
At least one definition of the middle class doesn’t rely on either income or net worth. A 2010 report prepared by the U. S. Department of Commerce Economics and Statistics Administration for the Middle Class Task Force defines the middle class “by their aspirations more than their income.” It identifies these as “home ownership, a car, college education for their children, health and retirement security and occasional family vacations.”
You can move up
If your aspirations remain out of reach or you’re merely dissatisfied with your current class level, don’t despair: you can improve your economic standing. Develop good financial habits and increase income when possible — and save the difference. And if you’re young, time is on your side to build your income and savings. Just practice patience and persistence.
Where you rank by income. According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.
The middle class is the most contested of the three categories, the broad group of people in contemporary society who fall socio-economically between the lower and upper classes.
Income ranges are $28,007 or less for the lower class, $55,001 to $89,744 for the middle class, and $149,132 or more for the upper class. Focus on your own finances by following habits that will build your net worth and income, rather than worrying what class you may currently fit into.
Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range. "The upper middle class has grown...and its composition has changed.
Lower middle class: Those in the 20th to 40th percentile of household income, between $28,008 and $55,000. Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131.
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau.
Lower middle-income economies are those with a GNI per capita between $1,136 and $4,465; upper middle-income economies are those with a GNI per capita between $4,466 and $13,845; high-income economies are those with a GNI per capita of $13,846 or more, according to the World Bank Country and Lending Groups.
While most Americans fall into the middle class, this socioeconomic sphere has been shrinking over the past 50 years, according to the Pew Research Center. About 50% of Americans are in the middle class today, compared to 61% in 1971. And yet the overall population continues to grow.
Some sources define the upper middle class as anyone making a lot of money but haven't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia.
Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000. Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income.
In 2018, the national middle-income range was about $48,500 to $145,500 annually for a household of three. Lower-income households had incomes less than $48,500 and upper-income households had incomes greater than $145,500 (incomes in 2018 dollars).
These class models feature an upper or capitalist class consisting of the rich and powerful, an upper middle class consisting of highly educated and affluent professionals, a middle class consisting of college-educated individuals employed in white-collar industries, a lower middle class composed of semi-professionals ...
Social inequality is the state of unequal distribution of valued goods and opportunities. All societies today have social inequality. Examining social stratification requires a macrosociological perspective in order to view societal systems that make inequalities visible.
The term upper class is a socioeconomic term used to describe those who reside on the highest levels of the social ladder above the middle and working or lower classes. They generally have the highest status in society and hold a great deal of wealth.
There are 4 types of social systems as defined by Parsons. The types include particularistic ascriptive, particularistic achievement, universalistic achievement, and universalistic ascription.
Introduction: My name is Horacio Brakus JD, I am a lively, splendid, jolly, vivacious, vast, cheerful, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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