Part 2/9:
The Importance of Distinguishing Between Average and Median Wealth
One of the most critical aspects to understand when evaluating savings and net worth is the difference between average and median figures. The average is often inflated by a small number of households with substantial wealth, leading to higher numerical representations that do not reflect typical situations. In contrast, the median value provides a more realistic benchmark since it represents the middle point where half of the households fall above and below.