More than 60% of Americans believe they are more capable of achieving their goals Financial goals Compared with previous generations, Schwab’s Modern Wealth Survey, The report analyzes how Americans view saving, spending, investing and wealth.
This optimism is most pronounced among baby boomers, with 66% believing they are as likely or more likely to achieve their goals than previous generations. However, when asked to compare themselves to previous generations, each generation surveyed expressed similar levels of confidence: Generation X (63%), Millennials (62%) and Generation Z (60%).
Americans are more optimistic because they invest
One factor that may be contributing to this positive sentiment is the increase in the number of Americans investing in the stock market. The Schwab survey shows that nearly three-fifths of Americans (58%) are investing today, which is consistent with recent Federal Reserve data that shows the same percentage of American households owning stocks, whether in mutual funds or retirement accounts, as in individual actions. The Fed data is up from 53% in 2019 and the highest level on record.
In fact, when asked why they are better off financially than previous generations, the Schwab survey shows that Americans believe they have more ways to accumulate wealth (50%), easier access to investments (46%) and more investment options (46%).
Especially for Generation Z, the main reason for their increased financial confidence is improved investment opportunities. According to Charles Schwab, this generation, which began with those born in the late 1990s, began saving and investing at an average age of 19, almost half the age when baby boomers began investing (35).
More than half of Americans surveyed believe they are doing a better job investing (51%) and are better able to live the lifestyle they want than their parents did at the same age (52%).
“There has never been a better time to be an investor, and it’s a very positive sign to see more Americans getting involved in personal finance and taking steps to build long-term wealth, especially younger generations who are just starting to save and invest early in their lives,” he said Jonathan Craig, head of investor services at Charles Schwab. “Certainly, we’ve seen an increase in the number of Americans investing during the pandemic, but there are many factors driving this trend that existed before and continue to drive investing today. Changes in the industry, such as the lower costs and minimums of investing and getting advice, wider access to sophisticated platforms and tools, a surge in investment information such as research and educational content, and significant product innovation, have made investing more accessible than ever before. Creating opportunities for more people to become investors was the core mission of Schwab when the firm was founded more than 50 years ago, and it remains at the core of everything we do today.”
Financial education is the key to success
Across all generations, nearly 70% of Americans feel confident in their investment strategy, with the availability of financial advice and knowledge (51%) and the ability to easily research companies and investments (37%) cited as the main reasons. Generation Z, The most confident of the generations (71%) said that learning about investing at a young age was the main reason for their increased confidence, and more than a quarter received education about investing in school, which is significantly higher than the older generations. In fact, about half of those who are not confident in their investment strategy said that not being taught about investing by their parents or family when they were young, or not receiving investment education in school, is the main reason for their lack of confidence in investing.