How Much Money Do You Need To Be Wealthy?

Key Takeaways

• A new survey from Charles Schwab found Americans, on average, think you need a net worth of $2.5 million to be wealthy.
• Baby Boomers described needing a higher net worth to be wealthy than younger generations like Gen Z.
• On average, residents in high-cost-of-living regions reported needing more money to be considered wealthy than those living in more affordable cities.

Americans believe you need an average net worth of $2.5 million to be considered wealthy, up from $2.2 million in 2023 and 2022, a recent survey from Charles Schwab found .

Being wealthy means different things to different people. You don't necessarily have to be in the top 1% to be considered wealthy, but the survey showed the amount of money some people think they need to meet the threshold varies by generation and where they live. 

Your Age Determines Your Perception Of Wealth

Older generations, on average, reported that it takes a much higher net worth to be considered wealthy or financially comfortable compared to younger ones.

Baby Boomers, born between 1948 and 1964, reported that you need an average net worth of $2.8 million to be wealthy and $780,000 to be financially comfortable. 

In contrast, Gen Z, born between 1997 and 2002, believes you need a much lower amount to be wealthy, $1.2 million, and $406,000 to be financially comfortable.

Here’s the average net worth you need to have to be considered wealthy, according to each generation:

• All Americans: $2.5 million
• Baby Boomers (1948 to 1964): $2.8 million
• Gen X (1965 to 1980): $2.7 million
• Millennials (1981 to 1996): $2.2 million
• Gen Z (1997 to 2002): $1.2 million

And So Does Your ZIP Code

Generally, residents of high-cost cities or regions reported needing a much higher net worth than residents of more affordable areas.

Of the geographic regions surveyed, San Francisco, Southern California, and New York residents had the highest thresholds for what it takes to be wealthy or even financially comfortable. Phoenix, Dallas, and Houston had the lowest thresholds.

Here’s the net worth that residents of different geographic regions and cities think you need to be wealthy:

• San Francisco: $4.4 million
• Southern California: $3.4 million
• New York: $2.9 million
• Washington, D.C.: $2.8 million
• Denver: $2.8 million
• Seattle: $2.8 million
• Boston: $2.7 million
• Atlanta: $2.4 million
• Chicago: $2.3 million
• Houston: $2.3 million
• Phoenix: $2.3 million
• Dallas: $2.2 million

How Do People Feel About Their Finances?

Only 21% of survey respondents said they thought they’d be wealthy in their lifetimes. However, younger generations were more hopeful about the possibility of being wealthy—29% of Gen-Zers and 28% of millennials reported they were on track to be wealthy.

Many Americans also don’t think they’re currently in control of their finances: just 18% of Americans reported feeling on top of their finances, and Baby Boomers were the most likely to say they were. 

Although many respondents don’t think they’re on track to be wealthy, many still gave themselves a passing grade when it came to rating their own finances. More than two-thirds of Americans gave themselves an A, B, or C grade on how prepared they were for retirement and how much they had invested.