Many of us think that wealth means having millions in bank accounts, villas, and luxurious cars but Schwab Wealth Survey 2023 reveals that real meaning of wealth goes far beyond having a lot of money. This survey is based upon an online study conducted by Charles Schwab & Co., Inc. on 1000 American adults of different age groups and gender. In this article, we are going to reveal What Does Wealth Mean for an American in 2023 based on facts and stats from Schwab Wealth Survey?
1. What is Charles Schwab Corporation?🏢
Charles Schwab Corporation is an American Financial Service company Founded by Charles Schwab in 1971 in California United States.
Around 35200 employees run this organization and provide a wide range of financial & advisory services like banking, investing, wealth management, etc. This company has earned a good reputation in investing market.
This Organisation conducts the online survey every year to understand the attitude and behavior of the investors in the context of current financial market conditions.
2. What is The Methodology of The Schwab Morden Wealth Survey?
This online Survey is conducted from 1st March to 13th March 2023 and completed by 1000 american citizens of the age group 21 to 75 which include 46% males and 54% females.
Further, this age group is divided into four category
- Gen Z ( age range 21 – 25)
- Millennials ( age range 26 – 41)
- Gen X (age range 42 – 57)
- Boomers (age range 58 -75)
3. What Does Wealth Mean to Americans? 🤑
Schwab Wealth Survey 2023 reveals many Americans think that meaning of wealth goes far beyond having a lot of money.
Feeling wealthy is about much more than a bank account balance. Wealth is about control of Family, social life, career, and good health.
3.1 How Much Money Required to Feel Wealthy?💸💸
Generally american perception is that one should need $ 2.5 Million to be wealthy in 2023 but the actual net worth of Americans is much lower who feel wealthy.
The Average net worth is $ 560K of those who feel wealthy and 57% of them are Millennials ( age range 26 – 41).
✍ Key Highlights from Schwab Wealth Survey 2023 :
- ✅ 48% of Americans feel Wealthy in 2023.
- ✅ Most Americans having the age group of 27 to 41 feel more wealthy than other age groups.
- ✅ In terms of wealth, 40% of Americans give priority to well-being over assets and money.
- ✅ 61% of American feel having more time is more important than having more money.
- ✅ Only 35% of Americans have determined their financial goal and follow documented financial Plans.
- ✅ 43% of Americans follow financial advice from social media influencers.
3.2 How Does American Describe Wealth in Their Own Words?
Survey reveals the truth that Americans place value and lean into things that money can’t buy when it comes to feeling wealthy. More American put preference well-being over money and assets.
It is clear from the survey that 62% of american think having healthy relationships with their loved ones better describes wealth than having a lot of money.
61% of american feel that having time is more important than having money. We feel having more money doesn’t harm.
But having enough and managing it to meet essential financial demands like living comfortably, retiring, and retiring early may lessen stress, boost confidence, and give you more options and control.
3.4 What is Wealth means to me? 💰💰
You may be surprised to know that American choose non-financial assets when asked to choose which better describes the wealth in said survey.
For 72% wealth means having a fulfilling personal life, For 70% wealth means not having stress over money. Surprisingly only 38% think wealth means having a lot of money.
What’s particularly interesting is that those surveyed mentioned well-being (40%) over money (32%) or assets (26%) when describing what it means to be wealthy.
4. What is The Importance of a Financial Plan?
This survey reveals that only 35% have determined their financial goals and have a formal financial plan.
So who have a formal Financial Plan 92% of them feel confident to reach their financial goals.70% of them feel more control over their finances.
This means everyone should have a financial plan to achieve financial freedom, which will give to confidence to achieve their financial goals.
Henry David Thoreau said, “Wealth is the ability to fully experience life”. The Conclusion of the Schwab Wealth Survey 2023 is wealth is not just about dollars. It is living a stress-free life and having more control over the finances. This survey reflects the collective financial mindset of the U.S. citizen to the question “What does wealth mean” in 2023 for them?