A recent study found a clear difference in how Gen Z and baby boomers think about financial success.
In a study published Friday, Empower said“Is there a secret to financial success? Most Americans (52%) say yes, with an average salary of $270,000 per year and a total net worth of $5.3 million to be considered successful. ”
For Gen Z, financial success looks like an annual income of $587,797, while baby boomers think it's $99,874.
Regarding barriers to financial success, Empower says:
More than a third are due to the economy (35%) and income instability (irregular or insufficient sources of income) (30%), as well as lack of knowledge about financial management (20%) is the answer. Nearly one-third say the biggest barrier to success is not setting clear financial goals (28%). More than one in four (26%) say procrastinating or delaying financial planning and decision-making gets in the way. People believe that lack of savings (35%), overspending and lack of effective budgeting (37%), and debt (36%) are barriers to success.
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Empower's Secret to Success study is based on online survey responses from 2,203 Americans ages 18 and older conducted by Morning Consult on September 13-14, 2024. The survey is weighted to be nationally representative of U.S. adults (18 years and older).
According to Breitbart News, a November 2023 report found that the majority of American adults were living paycheck to paycheck in President Joe Biden's (Democratic) economy.
The following month, Harvard University's Joint Housing Research Center found that nearly two-thirds of households in the bottom 20 percent of the income bracket pay more than half of their income on rent and utilities, placing a significant burden on households. revealed.
A Breitbart News article states, “The challenge for low-income households to afford basic housing costs is that President Joe Biden's so-called 'Bidenomics' plan to grow the economy 'from the middle to the lower' is not working. It suggests that.”
A May study found that Gen Z is experiencing financial hardship due to lower incomes and higher debt-to-income ratios than millennials could endure at the same age.
The Breitbart News article also noted that “higher interest rates and rising inflation under the Biden administration are causing many Gen Z adults to take on more credit card debt.”
