A new survey found that perceptions of wealth are shaped by being able to afford a certain lifestyle.
Younger generations said they feel wealthy when they can afford the same lifestyle as their friends.
The survey also found that for many, wealth comes from relationships and experiences.
“Do you feel rich?” That’s one of the questions finance brokers ask Schwab recently 1000 respondents in America asked. 48 percent of respondents indicated that they felt very or rather wealthy feel.
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Survey shows differences between generations
The fascinating thing wealth is that he is often in the eye of the beholder, and in the Opinion poll several trends in the perception of wealth have been identified. For example:
- 61 percent of those surveyed Generation Z and Millennials said they “feel wealthy if they can afford a lifestyle similar to their friends,” compared to 31 percent of Boomers.
- Likewise, 54 percent of Generation Z said they have changed their lifestyle social media compare to that of their friends and family. Both Boomern it was only 13 percent.
- More than half of Gen Z (53 percent) and the Millennials (51 percent) say their views on wealth are influenced by what people post on social media.
- Forty-six percent of Gen Z said they felt reasonably or very wealthy, rising to 57 percent of Millennials.
“Whether it’s a fear of missing out or a desire to keep up, there are many factors that can make you feel compelled to spend money on things that may not have long-term value,” he said Charles Schwab’s managing director for financial planning and wealth management, Rob Williams, in a statement announcing the survey results.
Schwab
Millennials and Generation Z are facing very special challenges financial challengesespecially in relation to housing costs and Student loan debt.
But it is also true that this feelings by the superficial depictions of success and wealth they portray in the social media see, can be enhanced. An Instagram photo or a Tiktok-Video showing a luxurious outfit or an accessory could incite jealousy and give the impression that everyone else is more Money have than themselves.
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The results of the survey differ from reality
Die Opinion poll found, for example, that respondents in the US consider an average net worth (assets minus liabilities) of $2.2 million to indicate that a person is wealthy.
That’s particularly remarkable given that household wealth of just $1.4 million would rank in the nation’s richest 10 percent, according to US Census Bureau data. The average American family had a loud 2019 Federal Reserve a net worth of around $750,000 (around €670,000). In other words, the notion of how much money it takes to be wealthy probably exceeds reality.
A fulfilled private life seems to be more important than material wealth
One of the most interesting results of Opinion poll is evident when respondents are asked which statement best describes how they feel about wealth think. If you’ve answered a survey question like this before, you know that you have to choose one of two options to prioritize. You may want a lot of money and a good one Work-Life-Balancebut you must prioritize one over the other.
And here, the vast majority of respondents of all ages put a joyful, balanced life with great relationships ahead of maximizing money, accumulating material possessions, and being richer than other people.
72 percent of those surveyed stated that “a fulfilling private life” prosperity better described as “focusing on your career”. Likewise, “not being stressed about money” was more than twice as popular as “having more money than most people I know.” And “having healthy relationships with family and loved ones” came out well ahead of “having lots of money.”
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So what should you take away from the survey?
If you are in the social media busy with highly stylized photos of your friends on vacation can affect your financial well-being.
Putting the phone away to enjoy experiences and spend time with loved ones, on the other hand, could increase your sense of wealth.
https://content.schwab.com/web/retail/public/about-schwab/schwab_modern_wealth_survey_2023_findings.pdf
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