Do you think you are rich? Here’s what the Americans are saying
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Being rich means different things to different people. The threshold to wealth is explored in the recent 2023 Modern Wealth Survey, an annual survey by Charles Schwab of how Americans think about saving, spending, investing and overall wealth.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BLACK | CHARLES SCHWAB CORP. | 54.41[ads1] | -1.13 | -2.03% |
It takes $2.2 million to be considered rich
According to Charles Schwab, this year’s survey of 1,000 respondents showed that there is a paradox between how people define wealth for themselves and how they define it for others.
The data also showed that the 48% of Americans who feel wealthy today have an average net worth of $560,000, compared to the $2.2 million they say it takes to be considered wealthy.
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The survey shows that about two-thirds of Americans (62%) say that being able to enjoy healthy relationships with loved ones better describes wealth than having a lot of money. And seven out of ten say that wealth is more about not having to stress about money than having more of it.
Respondents were also asked to share what it means to be wealthy in their own words, and according to the survey findings, Americans cite their well-being (40%) more often than money (32%) and possessions (26%). ).
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“My interpretation is that we’re looking at what money will do for us a little more in terms of lifestyle rather than dollar amount,” Rob Williams, managing director of financial planning at Charles Schwab told FOX Business. “Wealth today is more about healthy relationships with family/friends, good health and career flexibility than having more money.”
“Wealth today is more about healthy relationships with family/friends, good health and career flexibility than having more money.”
Age also appeared to play a role in wealth perceptions. Eight in 10 baby boomers revealed that wealth is more about enjoying experiences (79%) and not having financial stress (83%) than having nice things or accumulating more dollars, the survey’s findings said.
“We see these trends at Schwab as well,” Jonathan Craig, CEO and head of investor services at Charles Schwab, said in a press release.
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“When people think about managing their finances and building wealth, it’s so much more personal than just money and investments. How they invest and what they invest in reflects their unique goals and passions.”
Craig said respondents value experiences and relationships in their lives.
“Americans today are not so concerned 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,” Craig continued.
The online survey was conducted by Logica Research from March 1 to March 13 among a national sample of 1,000 Americans between the ages of 21 and 75. Another 200 Generation Z Americans completed the study.
Phone apps (Chesnot/Getty Images/Getty Images)
The respondents reveal that more financial planning may be necessary
The Schwab survey also noted that about a third (35%) of Americans have plotted their goals and documented a financial plan. And of those who do, seven in 10 say it makes them feel more in control of their finances. Nine out of 10 say they feel confident that they will achieve their financial goals.
Does social media intersect with wealth perceptions and attitudes?
According to Schwab’s research, social media can make Americans doubt how wealthy they feel and can influence the tendency to compare themselves with their social circles. Almost half (47%) say that being able to afford a lifestyle comparable to that of their friends makes them feel wealthy.
And among those who use social media, more than a third (37%) say they compare their lifestyle to what family and friends share on social media, Schwab shared in a press release. Also, 34% say they make certain purchases based on what they see on social media from friends and influencers.
View of a beach (Dimitrios Kambouris/Getty Images for Sandals Royal Bahamian/Getty Images)
They also reveal financial decisions (33%) and investment decisions (33%) are influenced by social media.
“The accessibility of social media and being able to browse and see fancy new items or exotic trips can affect how individuals feel about their own wealth,” Williams tells FOX Business.
“If they feel that what their family and friends are buying or doing is within their financial reach, they are more likely to identify as feeling wealthy.”
Williams also says that social media has become a platform Americans are increasingly using for advice on finances, investing and saving, “showing that many Americans are keeping their financial goals on top.”
