Will Gen Z Be Wealthy? Here’s How Many Young People Say Yes

Most of us dream about becoming wealthy. Not having to worry about money and living however you want sounds wonderful. It also requires a lot of money, especially in this inflationary economy .

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According to the U.S. Bureau of Labor Statistics , the consumer price index (CPI) all items index increased 2.9% over the last 12 months ending July 2024. While this is down from record highs within the past two years, it’s still higher than the Federal Reserve’s 2% target.

With inflation still up, being “wealthy” means different things to different people. This is especially true when you break it down by generation .

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Younger Generations Feel Most Optimistic About Their Wealth

A recent press release highlighted some interesting results from Charles Schwab’s Modern Wealth Survey 2024 survey. The organization collects data annually on Americans’ perspectives on wealth, investing, spending, and saving.

This year’s study revealed that Americans collectively think it takes an average net worth of $2.5 million to be considered “wealthy.” This figure is up slightly from 2023 and 2022 at $2.2 million.

However, there are clear generation differences in terms of what each generation thinks the average net worth is to be “wealthy” and “financially comfortable.”

“‘Wealth’ means different things to different people, whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount,” highlighted Rob Williams, CFP and managing director of financial planning at Charles Schwab, via the press release.

Here are the survey results:

• All Americans
  • Average net worth it takes to be “wealthy”: $2.5 million
  • Average net worth it takes to be “financially comfortable”: $778,000
• Baby boomers
  • Average net worth it takes to be “wealthy”: $2.8 million
  • Average net worth it takes to be “financially comfortable”: $780,000
• Gen Xers
  • Average net worth it takes to be “wealthy”: $2.7 million
  • Average net worth it takes to be “financially comfortable”: $873,000
• Millennials
  • Average net worth it takes to be “wealthy”: $2.2 million
  • Average net worth it takes to be “financially comfortable”: $725,000
• Gen Zers
  • Average net worth it takes to be “wealthy”: $1.2 million
  • Average net worth it takes to be “financially comfortable”: $406,000

From boomers to Gen Z in descending order, the oldest generation offered up the highest threshold to be considered wealthy, at $2.8 million. At the same time, Gen Zers and millennials think you need far less, at $2.2 million and $1.2 million, respectively.

However, interestingly enough, 29% of millennials and 28% of Gen Zers expressed the most optimism about feeling “on track” to be wealthy in their lifetimes — more than any other generation. This is compared with just 13% of boomers.

It’s worth noting that there are also significant geographical differences in terms of how being “wealthy” and being “financially comfortable” are viewed. In San Francisco, California, survey respondents said you need an average net worth of $4.4 million to be wealthy and an average net worth of $1.5 million to be financially comfortable. That’s compared with just $2.2 million and $724,000 in Dallas, Texas, for example.

This article originally appeared on GOBankingRates.com : Will Gen Z Be Wealthy? Here’s How Many Young People Say Yes