How do you define wealthy? Gen X vs Boomers vs Millennials

What does it mean to be considered wealthy in the US? That depends on where you live and who you are.

Most Americans say that having a net worth of $1.9 million can be considered “wealthy” in the US, according to Schwab’s 2021 Modern Wealth Survey, a slight decrease from $2.6 million which was the threshold set in 2020.

The drop in net worth is likely due to the pandemic, the survey said. Of the 1,000 survey respondents, 53% of Americans said that they were financially impacted due to the pandemic. This includes layoffs (about one in five) and salary cuts (26%).

“While COVID-19 upended nearly every corner of American life, many are starting to see the light at the end of the tunnel and are ready for a reset,” Jonathan Craig, senior executive vice president and head of Investor Services at Charles Schwab, said.

He added: “They plan to prioritize experiences and treat themselves after living constrained lives amid restrictions, quarantines and illnesses. But we’re also seeing a healthy balance – even as many people are eager to get out to spend, they also want to nurture newfound, healthy savings and investing habits developed over the last year, and it seems that will be an ongoing marker of this next chapter.”

The generational divide in net worth

When it comes to each generation, there’s a clear discrepancy in what wealth means in 2021. Younger Americans, in particular, defined wealth to be much less compared to old generations, like Baby Boomers.

Millennials — ages 24 to 39 — consider $1.4 million to be wealthy in 2021. That’s more than a million less that what Baby Boomers considered a wealth net worth, which came to $2.5 million.

Gen X said $1.9 million is considered wealthy, according to the survey.

What’s considered wealthy where you live?

Just because most Americans feel $1.9 million is wealthy doesn’t mean it is where you live.

In cities like Los Angeles and San Francisco, the average net worth is much higher than in cities like Chicago and Phoenix.

Denver had one of the lowest average net worths to be considered financially comfortable: $642,000. In Boston, the number is $1.1 million, up from $872,000 in 2020.

Below are 12 cities where you can get a better picture of how wealth is perceived differently based on where you live, the jobs available in those markets, and how the definition of wealth has changed over the past year.

Boston:

Average net worth to be considered wealthy: $2.8 million ($2.3 million in 2020)
Average net worth needed for financial happiness: $1.4 million ($1.4 million in 2020)
Average net worth to be financially comfortable: $1.1 million ($872,000 in 2020)

Chicago:

Average net worth to be considered wealthy: $2.4 million ($2.6 million in 2020)
Average net worth needed for financial happiness: $1.2 million ($1.5 million in 2020)
Average net worth to be financially comfortable: $790,000 ($1.1 million in 2020)

Dallas:

Average net worth to be considered wealthy: $2.4 million ($2.3 million in 2020)
Average net worth needed for financial happiness: $1.2 million ($1.4 million in 2020)
Average net worth to be financially comfortable: $642,000 ($753,000 in 2020)

Denver:

Average net worth to be considered wealthy: $2.3 million ($2.4 million in 2020)
Average net worth needed for financial happiness: $931,000 ($1.3 million in 2020)
Average net worth to be financially comfortable: $635,000 ($805,000 in 2020)

Houston:

Average net worth to be considered wealthy: $2.2 million ($2 million in 2020)
Average net worth needed for financial happiness: $1.1 million ($1.4 million in 2020)
Average net worth to be financially comfortable: $713,000 ($608,000 in 2020)

Los Angeles/Orange County:

Average net worth to be considered wealthy: $3 million (No change from 2020)
Average net worth needed for financial happiness: $1.6 million ($1.9 million in 2020)
Average net worth to be financially comfortable: $1.2 million ($938,000 in 2020)

New York City:

Average net worth to be considered wealthy: $2.9 million ($3.3 million in 2020)
Average net worth needed for financial happiness: $1.6 million ($2.4 million in 2020)
Average net worth to be financially comfortable: $997,000 ($1.3 million in 2020)

Phoenix:

Average net worth to be considered wealthy: $2.1 million ($2.1 million in 2020)
Average net worth needed for financial happiness: $1.1 million ($1.3 million in 2020)
Average net worth to be financially comfortable: $631,000 ($673,000 in 2020)

San Francisco:

Average net worth to be considered wealthy: $3.8 million ($4.5 million in 2020)
Average net worth needed for financial happiness: $1.8 million ($2.1 million in 2020)
Average net worth to be financially comfortable: $1.3 million ($1.5 million in 2020)

Seattle:

Average net worth to be considered wealthy: $3.1 million ($2.5 million in 2020)
Average net worth needed for financial happiness: $1.4 million ($1.3 million in 2020)
Average net worth to be financially comfortable: $857,000 ($838,000 in 2020)

Southwest Florida:

Average net worth to be considered wealthy: $2.6 million ($2.9 million in 2020)
Average net worth needed for financial happiness: $1.1 million ($1.4 million in 2020)
Average net worth to be financially comfortable: $693,000 ($881,000 in 2020)

Washington D.C.:

Average net worth to be considered wealthy: $2.9 million ($2.8 million in 2020)
Average net worth needed for financial happiness: $1.6 million ($1.7 million in 2020)
Average net worth to be financially comfortable: $980,000 ($865,000 in 2020)