Americans Say This Much Money Is Needed to Be Rich
According to a recent survey, Americans believe that a net worth of $2.5 million is the average amount needed to be considered wealthy.
The survey, conducted by Logica Research from March 4-18 and commissioned by Charles Schwab, reveals a slight increase in the perceived threshold for wealth compared to 2023 and 2022, when the average figure was $2.2 million.
The survey distinguishes between “wealthy” and “financially comfortable,” finding that Americans believe a net worth of $778,000 is sufficient for financial comfort. Notably, this figure significantly exceeds the median net worth of U.S. households in 2022, which was reported at nearly $193,000 by the Federal Reserve in October.
“‘Wealth’ means different things to different people, whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount,” stated Rob Williams, managing director of financial planning at Charles Schwab, in a press release regarding the survey.
The survey also provides a regional breakdown, indicating that Californians have the highest threshold for what they consider 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 self-identify as wealthy. However, when asked about their future prospects, 21% of respondents expressed confidence in achieving wealth. Younger generations displayed the most optimism, with 28% of Millennials and 29% of Gen-Zers indicating they were on track to become wealthy.
Interestingly, younger generations also have a lower threshold for what constitutes wealth. The study found that Boomers hold the highest threshold for wealth at $2.8 million, compared to $2.7 million, $2.2 million, and $1.2 million for Gen X, Millennials, and Gen Z, respectively.