Each Generation Has A Vastly Different View Of Financial Success
Jack Kelly
Forbes, Board of Directors Blind, Founder and CEO of The Compliance Search Group and Wecruitr.com, Co-host of the Blind Ambition Podcast
Each Generation Has A Vastly Different View Of Financial Success
A recent survey by Empower, a financial services firm, reveals fascinating insights into Americans' perceptions of money and success across different generations. The average salary Americans consider successful is $270,214, which is significantly higher than the median household income of $80,610.
This number seems large. We need to offer some additional collar and context.
It's important to note that mean income is different from median income. The mean is calculated by dividing the total income of all households by the number of households, which can be skewed by high-income households. The median, in contrast, represents the middle point where half of households earn more and half earn less
Generations have dramatically different views on what constitutes financial success. Gen Z stands out with the most ambitious expectations, believing they need an annual salary of $587,797 to be financially successful, compared to other generations.
Similarly, net worth expectations vary widely:
Key Findings
Interestingly, only 37% of respondents currently consider themselves financially successful, though 58% believe they will achieve success in their lifetime. The survey highlights that success isn't just about money.? About 59% of Americans prioritize happiness, and only 27% rank wealth as the most important measure of success.
In an exclusive Harris Poll conducted last year for Fast Company, 68% said they defined wealth as being able to afford necessities and also put aside some savings; just 11% saw it as being able to afford “extravagant purchases.” In other words, despite inflation and the rising cost of living, it seems financial success alone cannot guarantee happiness.
Economic challenges play a significant role, with 47% feeling they may never achieve their desired level of success. Barriers include economic instability, income uncertainty, and lack of financial planning. Despite these challenges, younger generations remain optimistic, with 71% of Gen Z and 70% of Millennials believing they will ultimately achieve financial success.