How much money do you need to be wealthy in America?

The amount people said it took to be considered rich averaged out to $2.3 million, a surey says.

Rich is relative.

Merely having a net worth of $1 million, it seems, doesn’t mean you’re wealthy. In Charles Schwab’s annual Modern Wealth Survey, the amount people said it took to be considered rich averaged out to $2.3 million. That, the company said, is “more than 20 times the actual median net worth of U.S. households.”

It’s also a very slight drop from the $2.4 million average in the two previous iterations of the survey.

The older one gets, the higher the bar goes, predictably. Among baby boomers (roughly age 55 to 73), the average net worth you need to be considered wealthy is $2.6 million, 35 percent higher than what millennials envision as the admission price to the plutocracy.

For someone to be deemed merely financially comfortable, the required net worth shrinks significantly. The average amount was $1.1 million, and only Generation Z (about age 9 to age 22, though Schwab’s sample was 18 to 22) cited a number below $1 million ($909,600, to be exact.)

The Schwab survey, which took a national sample of 1,000 Americans between the ages of 21 and 75, also revealed that the majority of Americans really crave real estate. More than 50 percent of respondents across generations said that if they got a $1 million windfall, they’d spend it, and the most popular purchase would be a place to live-particularly among millennials (roughly age 22 to 37).

Those millennials also took issue with the premise of the survey. More than three-quarters of them said their personal definition of wealth was really about the way they live their lives, rather than a discrete dollar amount.

Nevertheless, 60 percent of them aren’t all that worried, since they plan to be wealthy within one to 10 years. The survey results suggest an interesting strategy to help them get there-ignore their friends’ social media posts.

How’s that? Well, it seems virtual covetousness has taken on a life of its own for the digital generation. According to the survey, overspending because of what they see on social media (in tandem with the ease with which it takes your cash) was the largest “bad” influence on how they managed their money.

And the negative influence of social media on spending is only going to grow. In March, Instagram announced that it’s testing a shopping feature called Checkout that lets users buy things directly within the app, rather than being directed to a retailer’s website. So much for one-stop shopping. Now you won’t even have to stop.

With 59 percent of the Americans surveyed saying they live paycheck to paycheck, instant gratification comes with a high price. While a strong economy and low unemployment are helping consumers stay current on their debt payments, the largest U.S. banks are seeing losses on credit cards outpace those of auto and home loans at a rate not seen in at least 10 years.

And when the bottom does finally fall out, the last thing most Americans will be thinking of is whether they qualify as wealthy.

Talk to us

More in Herald Business Journal

Small business relief effort inundated with 850 applications

The economy in and around Everett has struggled amid fallen revenues and uncertainty about the future.

Marysville drivers wait overnight for Chick-fil-A opening

The popular chicken restaurant began serving at 6:30 a.m. Thursday. Police plan to guide traffic for days.

‘Hundreds of millions’ in bogus jobless benefits paid out

Washington state has been reported as the top target of a Nigerian fraud ring.

Tulalip Resort Casino and Quil Ceda Creek to open Tuesday

Guests must wear a mask and occupancy is limited, the Tulalip Tribes announced Wednesday.

As Arlington gym closes, a Snohomish barber continues to cut

PA Fitness closed after the state attorney general filed a lawsuit. “We would lose,” a co-owner conceded.

FAA says it will let Boeing employees vouch for plane safety

The agency defended the current system but identified areas for improvement. Some lawmakers disagree.

Fraudsters using local identities for phony jobless claims

The Everett School District, for example, saw about 310 false claims using employees’ personal information.

State sues an Arlington gym for violating stay-home order

“It is my constitutional right to be open,” says a co-owner of PA Fitness. He plans to countersue.

Heavy traffic expected when Chick-fil-A opens in Marysville

The city warns there will likely be delays for days along 88th Street NE. near the new restaurant.

Somers announces $14 million in relief for small businesses

One program will target aerospace companies. The other will focus on service and retail industries.

Paine Field terminal to close for 71 days of ramp repairs

Alaska is down to one departure per day due to the coronavirus outbreak’s effect on travel.

Quarantini time! New state rule allows cocktails to-go

Enjoy a margarita or a Manhattan with lunch or dinner to go. At Buck’s in Everett, you keep the mason jar.