AAccording to a new survey, Americans believe that to be considered rich, you need to have an average net worth of $2.5 million.
The survey, conducted by Logica Research from March 4 to 18 and published by Charles Schwab, found that the average net worth Americans believe is needed to be considered “rich” has increased slightly compared to 2023 and 2022, when they expected it to be $2.2 million.
The survey distinguishes between “affluent” and “financially well-off” and finds that Americans believe it takes less to live a financially well-off life: $778,000. Still, that figure is significantly higher than the median net worth of U.S. households in 2022, which was nearly $193,000, according to the Federal Reserve’s survey of consumer finances released 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,” said Rob Williams, managing director of financial planning at Charles Schwab, in a press release about the survey.
The survey also broke down the data by major regions and cities and found that Californians believe they have the highest threshold for what it takes to be rich.
- San Francisco – $4.4 million,
- Southern California – $3.4 million
- New York – $2.9 million
- Washington, DC, 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 said they are rich now. But when asked if they think they will get rich, 21% of Americans said they are “on the right track,” the survey found. Younger Americans were the most optimistic about getting rich: 28% of Millennials and 29% of Generation Z said they are on the right track.
But among younger generations, the threshold for what it takes to be rich is also lower. The study found that baby boomers have the highest threshold to be considered rich at $2.8 million. For Generation X, Millennials and Generation Z, the threshold is $2.7 million, $2.2 million and $1.2 million, respectively.
