More than 60% of Americans feel they are in a better place to achieve their goals than generations that came before them, according to Schwab’s eighth annual Modern Wealth Survey, an examination of how Americans think about saving, spending, investing and wealth. Boomers lead the charge, with 66% believing they are more or as likely as older generations to reach their goals, followed by Gen X (63%), Millennials (62%) and Gen Z (60%).
One factor likely driving the positivity across generations is the rise in the number of Americans investing in the stock market. Schwab’s survey data shows that almost three in five Americans (58%) are investing today. This is in line with recent Federal Reserve data, which is up from 53% in 2019 and is the highest on record.
When asked specifically why they are in better financial shape than previous generations, Schwab’s survey reveals that Americans believe they now have more ways to build wealth (50%), increased accessibility to investing (46%) and additional investment options available to them (46%). Gen Z, which starts with those born in the late 1990s, notes that a top reason for their financial confidence is improved access to investing. Gen Z began investing when they turned 19 years old on average, nearly half the age of when Boomers started investing (35), according to Schwab survey findings.
Schwab’s survey shows nearly 70% of Americans are confident in their investment strategy and point to the availability of financial advice and knowledge (51%) and the ability to easily research companies and investments (37%) as top reasons. Gen Z, the most confident of the generations, says that learning about investing at an early age is the biggest factor for their confidence. Additionally, more than a quarter of Gen Z respondents report that they were taught about investing in school, significantly more than older generations.
Despite increased levels of investing, survey respondents admit there’s more they can do, with only 18% saying they are currently on top of their finances. Nearly one-third (32%) feel they are on track to being on top of their finances and another one-third (34%) note that they need to make changes to feel more in control. One key area for improvement among Americans is financial planning. Schwab’s survey finds that only 36% of Americans have a written financial plan. Among those who do, 76% say it makes them feel more in control of their finances and nearly all (96%) say they feel confident that they will reach their financial goals.
Investing and financial planning are more accessible and more affordable today than ever before, and while Americans are increasingly engaged with their finances overall, there is still room for improvement when it comes to more formalized financial planning.
About the Modern Wealth Survey
The online survey was conducted by Logica Research from March 4, 2024, to March 18, 2024, among a national sample of 1,000 Americans aged 21 to 75. An additional 200 Generation Z Americans completed the study. Quotas were set to balance the national sample on key demographic variables. Detailed results can be found at https://www.aboutschwab.com/schwab-modern-wealth-survey-2024.
By: Brandpoint
