For most Americans, a person should have a personal net worth of $2.3 million, according to a new survey.
The figure is 20 times more than the actual median wealth of U.S. households, according to the 2019 Modern Wealth Survey conducted by Charles Schwab. The poll asked more than 1,000 Americans with ages 21 to 75 on their views on investment, saving, spending, and wealth.
Millennials have lower standards with regards to wealth as they consider those with a net worth of $1.9 million as wealthy. Baby boomers believed a person should have a $2.63 million in net worth to put you in the “rich’ category while for Generation X, the figure is $2.53 million. Generation Z gave the lowest number, saying that a person with a net worth of $1.49 million can already be considered wealthy.
Most of the respondents said they believed a person’s definition of wealth should not be defined by their worth in dollars but by how they spend their lives.
The survey found that 60% of them said they believe they will either be wealthy in the future or have already reached that wealth status. The poll also revealed that 59% of the respondents live from paycheck to paycheck.
Millennials and Generation Z usually spend more to participate in experiences with their friends, according to the survey. Exposure to social media pressures the two generations to shell out money on experiences.
Cities, where most of the super-rich reside, tend to have different opinions. New York, the city that houses the most billionaires in the world, while San Francisco, ranked third in the list, is has the highest billionaire density, the data firm Wealth-X said. In these areas, locals believe a person needs to earn more to be considered wealthy. San Francisco residents say a person needs a net worth of at least $4 million while New Yorkers say $3.2 million.