The majority of Americans agree — you need to be a multi-millionaire to be considered rich.
A recent survey, conducted by Charles Schwab, showed most Americans believe a personal net worth of $2.3 million (20 times more than the “actual median net worth of U.S. households”) would put you in the "wealthy" category, while millennials said it took more than $1.9 million to be classified as wealthy.
The 2019 Modern Wealth Survey asked more than 1,000 Americans, between the ages of 21 and 75, their thoughts on investment, spending, saving and wealth.
Baby boomers believed it took around $2.63 million to put you in that category while Generation X said $2.53 million. Generation Z said it took a net worth of $1.49 million for a person to be considered wealthy.
The participants said they believed a person’s definition of wealth is not defined by their dollar amount but by the way they live their lives.
However, 60 percent of the recipients said they believe they will either be rich someday in the future or have already achieved that status of wealth. The survey found 59 percent of the participants live paycheck to paycheck.
Millennials and Generation Z typically spend more than they can afford in order to “participate in experiences with friends," the survey found. The two generations also feel pressured by social media to dish out money on experiences.