How Do You Know If You’re In The American Middle Class? (2024)

FAQs

How Do You Know If You’re In The American Middle Class? ›

The middle class is generally perceived as those who fall between the socio-economic hierarchy of the working class and upper class. Those that have attained a college degree, are homeowners, able to send their children to college and have discretionary income consider themselves members of the middle class.

Income Guidelines

Lower class: The bottom 20% of earners with household incomes not exceeding $28,007. 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.

Your Paycheck Is High Relative to Your Peers

In both cases — middle class and rich — your paycheck might be higher than your peers. But you're likely rich if you earn significantly more money for your area and can handle far more than basic needs.

“The middle class can be defined as anyone who can afford a reasonable standard of living, including owning a home, going on yearly or bi-yearly vacations, and being able to support future investments like part of a college education for their children.

One commonly used definition from the Pew Research Center sets a middle-class income between two-thirds and twice the national median income, or $67,819 to $203,458 for a family of four in 2022. Most Americans consider the lower end of that range, $75,000 and $100,000, to be middle class, according to the Post poll.

By the Census data, it means that if you earn between $50,000 and $150,000 a year, you are considered middle class. It's a pretty straightforward answer, but it isn't particularly helpful if you're trying to climb up out of a lower income bracket into the middle class.

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.

$2.2 million

That's how much net worth an American needs to be considered wealthy in 2023, according to the Charles Schwab Modern Wealth Survey. The survey, which polled more than 1,000 adults online in March, asked Americans how much money a person in their area would need to be wealthy. It's an annual survey.

Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.

What professions do the middle class work in? ›

Middle-Class Jobs

They are paid relatively well compared to lower-class jobs, but fall below the compensation range of the upper 1% wealth class. Roles include registered nurses, accountants, electricians, teachers, recruiters, human resources, police officers, plumber and chef.

Upper-middle-class people tend to pursue careers that earn comfortable incomes. They provide their families with large homes and nice cars. They may go skiing or boating on vacation. Their children receive high-quality education and healthcare (Gilbert 2010).

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.

Based on the poll, the top 6 things that Americans think they need to be considered as part of the middle class are: Secure job. Ability to save money for the future. Ability to afford a $1000 emergency without debt. Ability to pay bills on time without worry.

The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.

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.

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.