Wondering where you fall on the economic spectrum? It can be difficult to determine whether you consider yourself middle class, lower class, or something else entirely.
Using income alone to define “class” doesn't always tell the whole story, but it is a useful starting point. According to Pew Research, income levels and family size play a big role in determining where you fit.
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Here's an overview and some real-world numbers to help you find out.
Lower class
The lower class is generally defined as households earning less than two-thirds of the median income. For many, this means struggling to cover essential expenses such as housing, food and healthcare.
What the numbers say:
Income range: Generally less than $50,000 per year for most households.
Specific thresholds for a three-person household:
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National: Less than $56,600 per year.
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By state: As low as $35,142 in Mississippi.
Signs you may be here:
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You live paycheck to paycheck.
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It's hard to save for emergencies or retirement.
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Things like medical care, transportation or rent will strain your budget to the limit.
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Middle class
The middle class is broad and is often described as the financial sweet spot. This group covers a huge range of incomes, but the key is a sense of stability – even though it may not always feel safe.
What the numbers say:
Income range: Between two-thirds and double the average income or about $50,000 to $150,000 per year.
Specific thresholds for a three-person household:
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National: $56,600 to $169,800.
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By state: in New Jersey, $64,224 to $192,692. In Mississippi, $35,142 to $105,438.
Signs that you belong to the middle class:
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You pay bills comfortably and offer occasional perks, such as vacations or dining out.
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Major expenses such as studying or buying a house are stressful but feasible.
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You save for the future, but not as much as you would like.
Upper class
The upper class isn't just about a big paycheck; it is often linked to assets such as investments, real estate or business income. According to Motley Fool, the upper class has an average net worth of $793,120 to $2.65 million.
These households typically earn more than double the median income and experience greater financial flexibility.
What the numbers say:
