Charles Schwab today released additional findings from its 2024
Modern Wealth Survey. Since 2017, Schwab has collected data
annually on Americans’ perspectives on saving, spending, investing,
and wealth. This year’s study reveals that Americans now think it
takes an average of $2.5 million to be considered wealthy – which
is up slightly from 2023 and 2022 ($2.2 million).
By generation, Boomers have the highest threshold of what it
takes to be considered wealthy, at $2.8 million, while the younger
generations, Millennials and Gen Z, have lower thresholds of what
is considered wealthy. At the same time, Americans say that the
average net worth required to be financially comfortable is
$778,000. The average net worth required for financial comfort
reached a peak last year at $1 million, but this year, Americans’
estimations are more in line with 2022 ($775,000) and show an
upward trend when compared with 2021 ($624,000).
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
When it comes to geographic region, Californians have the
highest threshold of what it takes to be wealthy, with San
Franciscans saying it takes $4.4 million and Southern Californians
indicating it takes an average net worth of $3.4 million. Survey
respondents who live in Atlanta, Chicago, Houston, Phoenix, and
Dallas express a lower threshold of what it takes to be wealthy
when compared with the national average.
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
When asked if they think they will be wealthy within their
lifetimes, 21% of Americans say they are on track to be wealthy.
Younger Americans, including Millennials and Gen Z, are the most
optimistic about being wealthy in their lifetimes (29%).
Though they’re optimistic about their future wealth, respondents
acknowledge that there’s more they can do, with fewer than one in
five Americans (18%) saying that they are currently on top of their
finances. Nearly one-third (32%) feel they are on track to being
more on top of their finances and another one-third (34%) feel they
need to make changes to feel more in control.
I’m wealthy now
I’m on track to be wealthy
I’m on top of my finances now
I’m on track to be on top of my
finances
All Americans
10%
21%
18%
32%
Boomers
8%
13%
26%
24%
Gen X
9%
18%
16%
29%
Millennials
12%
28%
14%
40%
Gen Z
10%
29%
17%
36%
Americans generally give themselves passing grades when it comes
to their personal finances, including how much they have saved, how
much they have invested, and how prepared they will be for
retirement. Notably, the grades are higher among those who have a
financial plan in place.
How Americans grade themselves
when it comes to their personal finances
All Americans
Those with a financial plan
A/B/C
D/F
A/B/C
D/F
How much I have saved
63%
37%
86%
14%
How much I have invested
67%
34%
86%
14%
How much I educate myself about
personal finance
78%
22%
92%
8%
How prepared I will be for
retirement
67%
33%
88%
12%
“‘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.
Financial planning helps people understand where they are today and
create a roadmap to get where they want to be, whether someone is
saving for a single goal, like retirement, or needs comprehensive
planning and wealth management.”
About the Modern Wealth Survey
The online survey was conducted by Logica Research from March 4,
2024, to March 18, 2024, among a national sample of 1,000 Americans
aged 21 to 75. An additional 200 Generation Z Americans completed
the study. Quotas were set to balance the national sample on key
demographic variables. Detailed results can be found here.
Disclosures
The information here is for general informational purposes only
and should not be considered an individualized recommendation or
personalized investment advice. The investment strategies mentioned
here may not be suitable for everyone. Each investor needs to
review an investment strategy for his or her own particular
situation before making any investment decision.
All expressions of opinion are subject to change without notice
in reaction to shifting market, economic or geopolitical
conditions.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at https://www.aboutschwab.com.
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Meredith Richard Charles Schwab 646-343-7419
Meredith.Richard@schwab.com
Charles Schwab (NYSE:SCHW)
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