Counterintuitive findings show that it is difficult to determine what wealth means in America.
To become wealthy in America, you need at least $2.2 million.
That’s according to Charles Schwab’s 2023 Modern Wealth Survey, released Tuesday, which asked a representative sample of Americans across the country to estimate the average net worth needed to enter the wealthy bracket. .
Despite this high sum, 48% of respondents already feel wealthy today, with an average net worth of just $560,000. And despite the myth that young people are struggling with money, millennials and Gen Z are the most likely to feel wealthy, with 57% and 46% respectively saying they are wealthy. By comparison, only 41% of Gen Xers and 40% of Baby Boomers. .
Counterintuitive findings show that it is difficult to determine what wealth means in America. With soaring housing prices and inflation driving up the price of commodities, people need more money than ever to feel financially secure, especially in cities where the cost of living is high. While six-figure salaries have much higher purchasing power in certain regions of the country than others, individual circumstances such as household size, homeownership and debt can significantly affect a sense of financial well-being. there is.
“There is a paradox in people defining wealth differently than others,” said Rob Williams, managing director of financial planning and wealth management at Charles Schwab. “When they ask someone for a dollar amount, they don’t put it in the context of the rest of their life or their financial health.”
How a wealthy person feels is also influenced by their peers. Nearly half of survey respondents feel wealthy if they can afford the lifestyles of their friends, and more than a third of social media users say their lifestyles are part of their family’s lifestyle. and what friends are posting online. That’s especially true for millennials and Gen Z.
Still, wealth exceeds net worth for many Americans. Nearly two-thirds of his survey respondents said having healthy relationships with loved ones represented wealth to them more than just having lots of money. And 70% said being wealthy means not worrying about money more than having a large bank account.
(Except for the headline, this article is unedited by NDTV staff and published from a syndicated feed.)
