A recent study found there is a stark difference in what Gen Z and Boomers think about financial success.
In its study published on Friday, Empower said, “Is there a secret to financial success? Most Americans (52%) say ‘yes’ — and the average salary considered successful is $270,000 per year, and $5.3 million in overall net worth.”
For Gen Z, financial success looks like an annual salary of $587,797, while Boomers think it is $99,874.
When it comes to barriers to financial success, Empower noted:
More than one third say the economy (35%) and income instability – irregular or insufficient income streams (30%) is a culprit, along with lack of knowledge about managing finances (20%). Nearly a third say the biggest obstacle to success is not setting clear financial goals (28%). Over 1 in 4 (26%) say procrastination or delaying financial planning or decision-making gets in the way. People see a lack of savings (35%), overspending and not budgeting effectively (37%) and debt (36%) as barriers to success.
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The Empower “Secret to Success” study is based on online survey responses from 2,203 Americans ages 18+ fielded by Morning Consult from September 13-14, 2024. The survey is weighted to be nationally representative of U.S. adults (aged 18+).
A report from November 2023 showed the majority of adults in America were living paycheck to paycheck in President Joe Biden’s (D) economy, per Breitbart News.
The following month, a Harvard Joint Center for Housing Studies found about two-thirds of households at the bottom 20 percent of the income bracket pay more than half their income for rent and utilities, causing a significant strain on them.
“The challenge for low income families to afford basic housing costs suggests President Joe Biden’s so-called ‘Bidenomics’ of growing the economy from the ‘middle out and the bottom up’ is not working,” the Breitbart News article read.
A study from May showed that Gen Z was having a hard time financially with low income and higher debt-to-income ratios than Millennials endured at their age.
The Breitbart News article also noted that “high interest rates and increasing inflation under the Biden administration have left many Gen Z adults dealing with more credit card debt.”
