- Although Henry has a high income, he is not yet wealthy.
- On average, Henry is a white Gen-Xer, a significant portion of whom are also DINKs.
- Although Henry owns financial assets and earns a large wage income, he is largely in debt.
Just because someone has a six-figure income doesn't mean they're wealthy. And vice versa.
Instead, there are some high-income earners who are still trying to get their hands on that egg. Unlike many older Americans with higher net worth, these workers are called Henrys. Henry refers to someone who is not yet wealthy but has a high income. The term was first coined over 20 years ago by Sean Talley of Fortune magazine. They may one day own assets that will make them billionaires, but for now they're just raking in big paychecks.
So who is Henry?
To analyze Henry America's demographics, we used the 2022 Consumer Finance Survey, released this year, to analyze Americans with an annual income of $200,000 or more and a net worth of less than $1 million.
So who is this layered Henry? They are slightly older than the wider Henley demographic, primarily white, and likely occupy the role of office workers.
Broadly speaking, we know that they are typically Millennials or younger Generation Xers. Most Henrys are between 40 and 49 years old, but 5.3% are between 20 and 29 years old. Almost 28% are between 30 and 39 years old, and more than a fifth are between 50 and 59 years old. The average age of Henry is approximately 46 years.
As for the couplings, HENRY is overwhelmingly popular.
More than 90% of Henrys are married. As Business Insider's Noah Scheidlower previously reported, many Henrys are likely to be DINKs, meaning two-income households without children.
For some couples, being DINKS means the ability and freedom to travel, save, and prepare for early retirement. An analysis of this Henley demographic revealed that approximately 31% were married and had no children. This is a higher proportion than her 20% of all American adults, who researchers estimate may choose not to have children. Just under 60% of Henry's girlfriends are married and have children.
All Henrys own financial assets. The vast majority of them have checking accounts, and the majority own cars and homes.
Many Henrys are in debt, which is not surprising since many have mortgages. Unlike millionaires and billionaires, who derive most of their wealth from stock holdings, Henry may still be paying off some debt.
Indebted Henrys owe an average of $319,170. Just over three-quarters of Henrys have mortgages and home equity loans, and the average balance on those loans is about $312,185.
Meanwhile, around 43% of Henrys take out education loans. The average is approximately $74,864.
Americans as a whole are currently in a bit of a trust crisis. Credit card balances continue to reach record highs, with Fortune magazine reporting that American cardholders carry an average credit card balance of $5,733. HENRY carries nearly twice as much luggage as her. Like other consumers, Henry also has credit card debt, and just under half have credit card balances.
Still, Henrys, like most Americans, tend to make money. They get paid jobs. Wages make up most of Henry's income, but a significant portion comes from capital gains and the businesses he owns.
That's the key difference between Henry and those considered super-rich. Billionaires tend to derive most of their compensation from capital gains (money earned by selling assets such as stocks), which are taxed at lower rates than regular salaries.
However, by paying off debts and continuing to increase real estate and stocks, Henry and his friends may be able to jump from high income earners to wealthy people, but they are not at that stage yet.
Are you a Henry or are you aiming to be a Henry? Contact this reporter at: jkaplan@businessinsider.com.
