- Americans’ views of what it takes to be rich have changed since before the pandemic.
- In a new poll by Charles Schwab, Americans say having lots of money isn’t the same as being rich.
- More people define wealth as their wellbeing rather than their money.
Many Americans feel wealthy—but don’t necessarily measure it in dollars and cents. Wellbeing, not money, is the number one measure of wealth for most adults today, according to the new Charles Schwab Modern Wealth survey.
The survey found that it takes an average net worth of $2.2 million to be considered “wealthy” — but that’s the estimate respondents gave for other people.
What about you? Are you rich? How much money does it take to call yourself rich?
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Of the 1,000 adults surveyed, about 48% say they already feel wealthy. Still, their average net worth is $560,000 — about a quarter of what they think others need to be rich.
Millennials are significantly more likely to say they feel wealthy – 57% of 26-41 year olds say they feel that way, compared to only about 40% of Gen Z, Gen X and Baby Boomers. For millennials who say they feel wealthy, their average net worth is about $530,000.
“Defining wealth is very personal and should be unique to one’s experience,” said board-certified financial planner Preston D. Cherry, founder and president of Concurrent Financial Planning in Green Bay, Wisconsin. He emphasizes the importance of having a financial plan based on one’s wants and needs.
“If you do nothing, nothing will happen,” said Cherry, a member of CNBC’s Financial Advisor Council.
One of the risks we take is believing that a certain amount of money will make us happy…
Brad Klontz
Managing Director of Your Mental Wealth Advisors
Overall, when asked what it means to them to be rich, respondents were more likely to mention their well-being (40%) than money (32%) and wealth (26%). In 2017, when asked what wealth means, money was the most common answer (27%).
“Whether they know it or not, wellbeing is far more important,” said CFP and financial psychologist Brad Klontz, executive director of Your Mental Wealth Advisors in Boulder, Colorado.
“One of the risks we take is believing that a certain amount of money will make us happy, bring us peace, improve our lives, improve our relationships,” said Klontz, who is also a member of CNBC’s Financial Advisor Council.
“Unfortunately, some people end up sacrificing what matters most to them in order to achieve an arbitrary number of fortunes.”
Still, nearly two-thirds, 62%, of adults in the Schwab survey say enjoying healthy relationships with loved ones better describes what wealth means than having lots of money (38%). And 7 in 10 adults say wealth is about not having to worry about money and not having more of it.
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