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This is how much money Americans think you need to be considered wealthy
By Austin Turner,
7 hours ago
( KTLA ) – This may not come as a surprise to most people, but the net worth that the average American considers to be “wealthy” is higher than it used to be.
In findings from its 2024 Modern Wealth Survey , Charles Schwab said that Americans, on a verage, believe it takes $2.5 million to be considered wealthy in today’s economy.
“‘Wealth’ means different things to different people, whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount,” said Rob Williams , CFP, managing director of financial planning at Charles Schwab. “Our survey reinforces that people with a written financial plan are more confident about achieving their personal financial goals.”
Breaking down the survey results by generation paints a more complete picture. Baby Boomers believe it takes $2.8 million in net worth to be wealthy. Following them are Gen X ($2.7 million) and Millennials ($2.2 million).
The jaw-dropping statistic of this survey, however, is the difference in perception of wealth for Gen Z. Members of Gen Z believe it takes a net worth of just $1.2 million to be considered wealthy, nearly half of what Millennials think.
Gen Z’s financial troubles and insecurity are no secret. Housing and household prices soar while wages don’t. A recent survey from Acorn revealed that nearly 30% of Gen Z fears homelessness.
Even comfortability was an issue for Gen Z in the survey, as the net worth they said they needed to be financially comfortable was $406,000 — more than $300,000 less than the amount for Millennials.
Average net worth it takes to be “wealthy”
Average net worth it takes to be “financially comfortable”
All Americans
$2.5 million
$778,000
Boomers
$2.8 million
$780,000
Gen X
$2.7 million
$873,000
Millennials
$2.2 million
$725,000
Gen Z
$1.2 million
$406,000
Charles Schwab
Despite that, 29% of younger Americans — including Millennials and Gen Z — felt optimistic about their chances of someday becoming wealthy. That could be due to the fact that investing is more readily available or that there are more opportunities to gain wealth through social media and content creation.
Average net worth it takes to be “wealthy”
Average net worth it takes to be “financially comfortable”
San Francisco
$4.4 million
$1.5 million
Southern California
$3.4 million
$1.2 million
New York
$2.9 million
$994,000
Washington, D.C.
$2.8 million
$968,000
Denver
$2.8 million
$876,000
Seattle
$2.8 million
$789,000
Boston
$2.7 million
$903,000
Atlanta
$2.4 million
$781,000
Chicago
$2.3 million
$813,000
Houston
$2.3 million
$662,000
Phoenix
$2.3 million
$650,000
Dallas
$2.2 million
$724,000
Charles Schwab
Unsurprisingly, Californians had the highest threshold for what it takes to be wealthy. The top two regions of the country for the wealth threshold were the San Francisco Bay Area and Southern California, at $4.4 million and $3.4 million, respectively.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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