Money, Happiness Or Both? How Gen Z, Millennials And Boomers Define Success In A Changing Economy

Generational Gaps Highlight Different Perceptions of Financial Prosperity

A recent study sheds light on how Americans across generations perceive financial success. Conducted by Morning Consult, the study surveyed over 2,200 adults to explore aspirations for income, net worth, and financial milestones. Results highlight a significant disconnect between current earnings and what respondents believe they need to achieve success.

Generational Disparities in Financial Expectations

The study shows that Gen Z, comprised of individuals born between 1997 and 2012, holds the highest expectations for income and net worth. They aspire to earn $587,797 annually and amass nearly $9.5 million in net worth. Millennials, born from 1981 to 1996, set their sights on a $180,865 income and a $5.6 million net worth, aligning closely with Generation X expectations. In stark contrast, Baby Boomers—born between 1946 and 1964—have more modest goals, aiming for $99,874 annually and $1 million in net worth.

While Boomers report the highest current earnings, averaging $69,628 per year, they also maintain lower financial aspirations. This generational gap underscores differences in economic realities and cultural priorities.

Redefining Success: Happiness Over Wealth

The study also highlights a shift in how Americans define success. Only 27% of respondents ranked wealth as their top benchmark. Instead, 59% prioritized happiness, equating it with purchasing power and the ability to afford meaningful experiences.

This trend reflects broader economic pressures. Inflation, which rose 2.6% in the past year, continues to erode purchasing power despite a 4.2% increase in median earnings during the third quarter of 2024.

Current Earnings Highlight the Challenge

The U.S. Bureau of Labor Statistics reports the median annual salary for full-time workers at $60,580, far below the $270,000 average annual income Americans believe defines success. Earnings vary significantly by age group, with younger workers earning the least.

Ages 16-19: $32,916/year
Ages 20-24: $40,456/year
Ages 35-44: $67,652/year

This disparity highlights the uphill battle for younger generations like Gen Z, who are entering the workforce with higher financial aspirations but lower wages.

Generational Strategies to Bridge the Gap

Amid these challenges, some young Americans are redefining paths to financial independence. A rising number embrace "Barista FIRE," a concept emphasizing work flexibility and nontraditional income sources. Strategies include freelancing, monetizing hobbies, and pursuing entrepreneurship.

For example, a 25-year-old influencer shared her approach to retiring early by maintaining a strict budget, automating savings, and diversifying income. She views retirement not as stopping work entirely but as achieving financial freedom to focus on passions and well-being.