Newly released data from a Charles Schwab survey found a 12 percent spike in the amount of money Americans think people must have “to be considered wealthy,” up $300,000 from last year.
The data, released in a press release Thursday, found Americans saying that “it takes” an average net worth of $2.5 million “to be ‘wealthy,’’” spiking by 12 percent from last year when Americans said that “it takes” $2.2 million on average.
“‘Wealth’ means different things to different people, whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount,” Rob Williams, a Charles Schwab managing director of financial planning, said in the release.
Among geographic locations, Californian ranked highest in terms of what monetary amount constitutes being wealthy — San Franciscans and Southern Californians said an average net worth of 4.4 million and $3.4 million are required, respectively.
Other data released included Americans saying the average net worth that “it takes to be ‘financially comfortable’” is $778,000, down from last year when it was $1 million.
“The average net worth required for financial comfort reached a peak last year at $1 million, but this year, Americans’ estimations are more in line with 2022 ($775,000) and show an upward trend when compared with 2021 ($624,000),” the release stated.
The survey occurred between March 4 and 18 and featured 1,200 people aged 21 to 75.