Feeling rich? According to a new survey, what it means to be “wealthy” varies significantly.
When asked how much money it takes in order to be considered “wealthy,” respondents to financial services firm Charles Schwab’s Modern Wealth Survey said it takes an average net worth of $2.2 million.
But nearly half of respondents (48%) said they already feel wealthy — and their average net worth is just $560,000.
The “wealth paradox” comes as many respondents said they don’t associate wealth solely with monetary possessions.
Nearly two-thirds of survey respondents (62%) said being able to enjoy healthy relationships with their loved ones better describes wealth than having a lot of money. Seven in 10 said wealth is more about not having to stress over money than having more of it, according to the survey.
When asked to characterize what it means to be wealthy in their own words, survey respondents mentioned their wellbeing (40%) more often than money (32%) and assets (26%).
“Americans today aren’t as worried about keeping up with the Joneses, and more importantly, they understand that they can be happier with fulfilling experiences and relationships, even if they have less money than them,” said Jonathan Craig, managing director and head of investor services at Charles Schwab.
The survey said eight in 10 respondents identified as “Boomers,” referred to as people born between 1947 and 1964. Those respondents said wealth is more about enjoying experiences (79%) and not having financial stress (83%) than having nice things or accumulating more money.
That’s higher than the responses provided by people identified as members of Gen Z, which refers to those born between 1997 and 2001.
Within Gen Z, 61% said they equate wealth with the ability to maintain a lifestyle similar to that of their friends. The survey’s findings suggest “their perception of wealth revolves around the capacity to make purchases influenced by their social media connections, including friends and influencers.”
That’s nearly twice as many as the 31% of Boomers who responded the same way.
Schwab said its online survey was conducted by Logica Research between March 1 and March 13, among a national sample of 1,000 Americans aged 21 to 75.
