Recent research from Charles Schwab revealed that the average American believes being rich equates to having a net worth of $2.5 million. The survey, conducted on a Wednesday, explored the perception of wealth across different generations, from Gen Z to Boomers. Interestingly, each age group had a different threshold for considering someone wealthy, with older generations having higher monetary expectations.
According to the survey, Gen Z believes that $1.2 million is the amount needed to be considered wealthy, while millennials estimate it at $2.2 million. The older generations, Gen X and Boomers, set even higher benchmarks at $2.7 million and $2.8 million, respectively.
Comparing this year’s findings to last year’s, the average perception of wealth has risen from $2.2 million to $2.5 million. This increase may be attributed to factors like inflation and economic concerns shaping individuals’ perceptions of wealth.
Rob Williams, managing director of financial planning at Charles Schwab, highlighted the emotional aspect attached to the concept of wealth, stating that the increase to $2.5 million reflects both the rising cost of living and Americans’ evolving emotional interpretations of wealth.
Aside from wealth, the survey also examined the average net worth Americans associate with being “financially comfortable.” The findings showed differences across generations, with Gen Z, millennials, Gen X, and Boomers citing varying amounts for financial comfort.
On average, Americans believe that a net worth of $778,000 constitutes financial comfort, a decrease from the $1 million average recorded in the previous year’s survey. The research was based on responses from 1,200 Americans aged 21 to 75, gathered in March.
For more insights: In These U.S. Cities, Earning a $150,000 Salary Is Considered ‘Lower Middle Class,’ According to a New Report
