This Is How Much The Average American Makes In Their 20s

Pay increases can happen fast, once you are past your early 20s that is. According to the U.S. Bureau of Labor Statistics' Q1 2025 report, workers ages 20 to 24 earned a median of $792 per week (about $41,184 annually). However, the 25 to 34 age group had median weekly earnings of $1,125 (around $58,500 annually). That's more than $333 extra per week, or $17,316 more per year. In other words, a 42% pay increase over one decade. Not to mention, young workers were hit especially hard during the COVID-19 pandemic, but have since bounced back faster than in any previous recovery. According to the U.S. Bureau of Labor Statistics, the average weekly earnings jumped 1.5% between May 2024 and May 2025.

The average income in the U.S. depends on a lot of things — age, education, what industry you're in, and even where you live. Plus, for young workers, student loan debt can make things even more complicated. According to the U.S. Department of Education, the average federal student loan balance hit $37,853 in 2024, putting many new graduates close to the $40,000 mark. This means that, for many, early adulthood means trying to juggle a five-figure loan with a paycheck that's usually only in the low to mid-$40,000s.

While age can certainly affect income, education can be an even more significant factor. The education divide begins early, and only compounds throughout a person's career. The U.S. Bureau of Labor Statistics (BLS) reported that, as of October 2024, associate degree graduates aged 20-29 had an unemployment rate of only 2.1%. Bachelor's degree recipients in the same age group faced 15.3% unemployment that month. Plus, differences in weekly earnings are apparent across educational tiers, with Q1 2025 BLS data finding that full-time workers aged 25 and older without a high school diploma earned just $750 a week, compared to those with at least a bachelor's degree earning $1,732 per week.

The gap in median net worth is also bigger. Federal Reserve data shows that households led by college graduates had a median net worth of $464,600 in 2022. For those with only a high school diploma, the figure was $106,800. And, for those that didn't finish high school, their household median net worth was only $38,000. So, while college graduates have more than four times the wealth of high school graduates, the gap is even wider for those without a diploma.

Getting the money basics right in your 20s can make a huge difference later on. This can affect your ability to build a good credit score and find financial stability. While your income is not technically among the things that can lower your credit score, it can determine how well you are able to handle debt and pay bills on time — things that are major factors in your creditworthiness. This can be important when you want to apply for a credit card or even buy a house since lenders look at your debt-to-income ratio before approving things like a mortgage.

Another consideration is that the U.S. Department of Labor found that people who started their retirement savings in their 20s got the most out of their compound interest. Even small monthly contributions can grow significantly over decades. Starting contributions to a 401(k), or IRA, early can give you more time for your money to compound and grow — even if you're only putting in a small amount at first.