Americans say they need $2.5 million in net worth to be considered wealthy

The perception of what it means to be "rich" in the country has changed and this reflects the economic downturn experienced from recent damage during the Biden Administration. According to a recent survey by Charles Schwab, on average, Americans believe that one needs a net worth of $2.5 million to be considered wealthy in 2024 (up 14% from last year, when the average was $2.2 million).

The figure changes when citizens are asked with what average net worth they consider themselves "financially comfortable," dropping to $778,000.

By generation and by city, perceptions change

The report also reveals notable differences between generations. For example, Millennials and Generation Z tend to set a lower figure for being considered wealthy, compared to Baby Boomers ($2.8 million) and Generation X ($2.7 million), who have had more time to accumulate wealth and therefore tend to have higher expectations.

In addition, perceptions of wealth also vary by region, with residents in coastal cities such as New York ($2.9 million to be wealthy) and San Francisco ($4.4 million) considering a much higher net worth necessary due to the high cost of living.

On the other hand, in places like Washington, D.C., Denver and Seattle residents said on average that being wealthy means having a net worth of $2.8 million.

Twenty-one percent of respondents said they are on track to becoming wealthy, and Rob Williams, managing director of financial planning at Charles Schwab, acknowledged that there are different perspectives on what it means to be wealthy:

"Wealth means different things to different people (...) whether it's financial freedom, enriching experiences with friends and family, or a certain dollar amount."