(KTLA) – This may not come as a surprise to most people, but the net worth that the average American considers to be “wealthy” is higher than it used to be.
In findings from its 2024 Modern Wealth Survey, Charles Schwab said that Americans, on average, believe it takes $2.5 million to be considered wealthy in today’s economy.
“‘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.”
Breaking down the survey results by generation paints a more complete picture. Baby Boomers believe it takes $2.8 million in net worth to be wealthy. Following them are Gen X ($2.7 million) and Millennials ($2.2 million).
The jaw-dropping statistic of this survey, however, is the difference in perception of wealth for Gen Z. Members of Gen Z believe it takes a net worth of just $1.2 million to be considered wealthy, nearly half of what Millennials think.
Gen Z’s financial troubles and insecurity are no secret. Housing and household prices soar while wages don’t. A recent survey from Acorn revealed that nearly 30% of Gen Z fears homelessness.
Even comfortability was an issue for Gen Z in the survey, as the net worth they said they needed to be financially comfortable was $406,000 — more than $300,000 less than the amount for Millennials.
| 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 |
Despite that, 29% of younger Americans — including Millennials and Gen Z — felt optimistic about their chances of someday becoming wealthy. That could be due to the fact that investing is more readily available or that there are more opportunities to gain wealth through social media and content creation.
| 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 |
Unsurprisingly, Californians had the highest threshold for what it takes to be wealthy. The top two regions of the country for the wealth threshold were the San Francisco Bay Area and Southern California, at $4.4 million and $3.4 million, respectively.