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NEW YORK — Despite being the land of opportunity, the American Dream remains frustratingly out of reach for most Americans, with a mere 31% believing they’ve financially “made it” in life. The surprising twist? Millennials are leading the pack in financial confidence, with 34% claiming they’ve achieved financial success – the highest percentage among all generations.
The comprehensive survey of 2,000 employed Americans, conducted by Talker Research for BOK Financial, reveals a complex landscape where traditional markers of success are evolving, and external factors weigh heavily on financial aspirations. For those still climbing the corporate ladder, there’s hope: 54% believe they’re well on their way to financial success in their lifetime.
However, the picture becomes less optimistic with age. Only 27% of baby boomers feel they’ve reached financial success, and among those who haven’t, just one-third believe they ever will. The survey found that Americans consider their path to financial success threatened by various external factors, including presidential elections (46%), interest rate changes (45%), and the job market (42%).
What exactly does it mean to ‘make it’ financially in today’s America?
The goalposts have shifted significantly, with 79% of respondents saying their definition has evolved over time. The magic number appears to be around $234,000 in net worth – though reaching that milestone faces modern obstacles like the high cost of living (42%) and inflation (26%), with some citing their own spending habits (7%) as a barrier.
“The uncertainty around the economy, politics and other external factors can weigh heavily on people — and are right now,” says Jessica Jones with BOK Financial Advisors, an affiliate of BOK Financial, in a statement. “And financial headwinds like high inflation and interest rates can make it feel like it’s harder to get ahead, but baby steps are key. If someone is struggling to see success in their financial future, it’s important to just get started, even with a small savings account.”
Nearly half of baby boomers (48%) and Gen X respondents (47%) point to higher cost of living as a major obstacle, compared to just 34% of Gen Z. Meanwhile, younger generations – Gen Z (28%) and millennials (30%) – are more likely to cite inflation as their primary concern.
The markers of financial success have also undergone a dramatic shift. Today’s Americans consider owning a home (78%) and a vehicle (64%) as necessary indicators of financial success, while traditional milestones like having children (40%) or getting married (34%) – which were crucial for their parents’ generation – have become less significant. Modern indicators now include having an established long-standing career (48%) and earning a college degree (30%).
When it comes to spending, Gen Z (27%) and millennials (31%) direct the largest portion of their money toward family expenses, while Gen X (43%) and baby boomers (50%) prioritize retirement savings. Younger generations are planning ahead too, with Gen Z expecting to start retirement planning at around age 41, and millennials at age 46.
Interestingly, Gen Z shows both practical and personal financial priorities. While they’re the most confident about planning their financial future without professional help (70%), they also lead in prioritizing purchases that make them happy (20%). In contrast, baby boomers express the least confidence in their financial future during retirement (33%) and their ability to plan without professional assistance (49%).
“While people may feel confident that they can manage money on their own, I’d really advocate for being educated,” Jones notes. “Young people, especially, are showing an interest in understanding financial concepts, which is encouraging, but there is a lot of information out there, so I encourage people to double check their sources.”
The study also revealed interesting trends in how Americans seek financial advice. Most prefer guidance from older individuals over peers (64% vs 56%). While social media’s influence on financial perceptions remains significant at 45%, only 41% actively seek financial advice from these platforms. However, Gen Z bucks this trend, showing the highest interest in social media financial advice (64%) and being most influenced by these platforms in defining financial success.
Survey methodology
Talker Research surveyed 2,000 employed Americans split evenly by generation (500 Gen Z, 500 millennials, 500 Gen X and 500 baby boomers); the survey was commissioned by BOK Financial and administered and conducted online by Talker Research between Oct. 18 and Oct. 24, 2024.
The “feelings” is wedded to the facts that you can never have too much money. There are many unknowns about the future and because the population is living longer, there may be a need to have the resources for a life event such as diseases in old age like cancer. Or a man made or natural disaster that wipes out a person’s home and savings. There is insurance to manage risk but even that safety net may be challenged in the future.
The other 69% need to get a job.
I’ve always read that boomers hogged everything. Now, millennials are the hogs? Who’d a thunk? Money moves as death approaches or arrives.
If you’re of Baby Boomer age and you’re still worrying about achieving financial success, then you’ve made some poor life choices. For most people of that demographic, it should already be a done deal.
These numbers make sense. Don’t most people achieve financial success (as defined by them) later in life just before retirement?
Don’t most people fail to save at an early age, they are not yet earning their maximum income due to lack of experience or focus on finding that great career?
Don’t most people have a financial epiphany around age 50 and start focusing on saving or investing for retirement?
I would be more concerned if 75% of people had achieved their financial success, as this would mean most people would stop striving for more in their later working life.
Yes, you’re right