HOW MUCH MONEY AMERICANS THINK IT TAKES TO BE WEALTHY

Matt Case - August 26th, 20204 - 8:34am PDT 

How Much Money Do You Need to Be Considered Rich? Americans Say $2.5 Million

WASHINGTON  — How much money do you need to be considered rich? According to the 2024 Modern Wealth Survey from Charles Schwab, Americans now believe it takes an average net worth of $2.5 million to be deemed wealthy.

This figure represents a 14% increase from last year’s estimate of $2.2 million. While $2.5 million is the average threshold for wealth, the survey also explored what it means to be “financially comfortable.” For that, Americans think a net worth of $778,000 is sufficient — a figure still far above the median net worth of U.S. households, which stood at nearly $193,000 in 2022, according to the Federal Reserve’s latest Survey of Consumer Finances.

Despite these lofty numbers, the survey finds that only about 10% of Americans currently consider themselves wealthy, though 21% say they are "on track" to achieve wealth in the future. Younger generations are particularly optimistic, with 28% of millennials and 29% of Gen Z respondents saying they feel they are on the path to wealth.

Interestingly, different generations have varying expectations for what it takes to be wealthy. Baby boomers believe it requires a net worth of $2.8 million, while Gen X places the threshold at $2.7 million. Millennials set the bar at $2.2 million, and Gen Z considers $1.2 million sufficient for wealth.