A recent study involving 2,000 working Americans indicates that merely 31% feel they have achieved financial success in life. Notably, millennials are at the forefront, with 34% asserting they have reached financial prosperity — the highest rate among all generations surveyed. The research discovered that various external influences play a significant role in shaping financial aspirations.
Among these factors are presidential elections (46%), fluctuations in interest rates (45%), and conditions within the job market (42%). Furthermore, 79% of participants revealed that their understanding of what it means to achieve financial success has changed over time. Current challenges, such as rising living expenses (42%) and inflation rates (26%), serve as considerable obstacles to achieving financial goals.
Some participants also indicated that their spending behaviors (7%) are impeding their progress. Jessica Jones from BOK Financial Advisors observes, “The unpredictability of the economy, along with political and other external issues, can create significant stress for individuals.” For those who may feel they are not making financial progress, it is crucial to begin with even modest savings.
Clear generational differences are evident in the findings.
Almost half of the baby boomers (48%) and Gen X participants (47%) identify the rising cost of living as a major challenge, in contrast to only 34% of Gen Z respondents. Younger groups, including Gen Z (28%) and millennials (30%), are more inclined to highlight inflation as their main concern. The criteria for financial success have seen a noteworthy transformation.
Millennials at the forefront of financial assurance
Contemporary Americans view homeownership (78%) and car ownership (64%) as essential indicators of financial success, while traditional milestones such as having children (40%) or getting married (34%) have diminished in importance. Other modern benchmarks include securing a stable career (48%) and obtaining a university degree (30%).
Regarding expenditures, Gen Z (27%) and millennials (31%) allocate a significant share of their finances towards family-related costs, while Gen X (43%) and baby boomers (50%) prioritize retirement funds. Younger generations are also planning for the future, with Gen Z anticipating retirement at around 41 and millennials at 46. Interestingly, Gen Z displays both pragmatic and personal financial priorities.
They exhibit the highest confidence in managing their financial futures independently (70%) and lead in valuing purchases that enhance their happiness (20%). Conversely, baby boomers show the least confidence regarding their financial future upon retirement (33%) and in their ability to plan without expert guidance (49%). “Though many feel capable of managing their finances alone, I recommend seeking professional advice,” Jones adds.
“There is a growing interest among young individuals in grasping financial concepts, which is promising; however, given the overwhelming amount of information available, it’s vital that they verify their sources.”
The survey also uncovered notable patterns in the ways Americans pursue financial guidance. A larger number prefer seeking advice from older individuals rather than from their peers (64% vs. 56%). Although social media significantly influences financial perceptions (45%), only 41% actively pursue financial guidance through these channels.
Nevertheless, Gen Z bucks this trend, showcasing the greatest interest in social media financial advice (64%) and being most affected by these platforms when it comes to defining financial success.
