Americans believe that you need an average net worth of $2.5 million to be considered wealthy, according to a new survey.
The survey, conducted by Logica Research from March 4-18 and released by Charles Schwab, found that the average net worth Americans think it takes to be “wealthy” has gone up slightly from 2023 and 2022, when they thought that number was $2.2 million.
The survey distinguishes between “wealthy” and “financially comfortable,” finding that Americans think it takes less to live a financially comfortable life: $778,000. Even still, that number is significantly higher than the median net worth of U.S. households in 2022, which was nearly $193,000, according to the Federal Reserve’s Survey of Consumer Finances released in October.
[time-brightcove not-tgx=”true”]“‘Wealth’ means different things to different people, whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount,” Rob Williams, managing director of financial planning at Charles Schwab, said in a press release about the survey.
The survey also broke down the data by major regions and cities, finding that Californians have the highest threshold of what they think it takes to be rich.
- San Francisco – $4.4 million,
- Southern California – $3.4 million
- New York – $2.9 million
- Washington, D.C., Denver, and Seattle – $2.8 million
- Boston – $2.7 million
- Atlanta – $2.4 million
- Chicago, Houston, and Phoenix – $2.3 million
- Dallas – $2.2 million.
Only about 10% of Americans said they were wealthy now. But when asked if they think they will become wealthy, 21% of Americans said they are “on track, “ the survey found. Younger Americans were the most optimistic about becoming wealthy, with 28% of Millenials and 29% of Gen-Zers saying they were on track.
But younger generations also had a lower threshold of what it takes to be rich. The study found that Boomers had the highest threshold of what it takes to be considered wealthy—$2.8 million—compared to the $2.7 million, $2.2 million, and $1.2 million for Gen X, Millennials, and Gen Z, respectively.
source https://time.com/7014429/net-worth-americans-think-you-need-to-be-wealthy/
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