What ‘Financially Comfortable’ Meant 10 Years Ago vs. What It Means for Millennials Today
In 2016, financial comfort for many households meant having a steady paycheck, being able to pay bills without struggling, having an emergency fund, having a retirement account that’s growing quietly and having enough left over for discretionary expenses or vacations. Ten years later, millennials are chasing a similar goal but with a much bigger price tag.
Americans now believe you need roughly $839,000 to be financially comfortable, according to Charles Schwab's Modern Wealth Survey. And for millennials the bar sits higher — find out more below.
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The Number Keeps Climbing
Schwab's survey shows how quickly the average net worth needed to feel comfortable financially has been going up. Americans said you need a net worth of $839,000 to feel comfortable in 2025, up from $624,000 in 2021. This is a 34% jump in just four years.
The number is even higher for millennials at $847,000, versus $783,000 for Gen X. The leading reasons for the rising bar to achieve financial comfort and wealth are inflation, a weakening economy and higher taxes.
Housing Changed the Math
Buying a home was still tough a decade ago, but prices and mortgage costs were more manageable than for today’s buyers. The median U.S. home sold for $299,800 in early 2016, according to the Federal Reserve data. By the beginning of 2026, that number was $403,200, a 34% increase.
The bigger issue is the cost of borrowing. The median price of existing homes is $440,600 as of June this year, per the National Association of Realtors (NAR), and average mortgage rates stand at 6.5%. In 2016, the rate was below 4%. This says a lot about housing affordability today.
Comfort Now Costs More Than Money
While hitting a certain number in accumulated wealth is a huge milestone, Schwab's survey revealed something different. Americans ranked happiness and financial success as equally important, with physical health, mental health and strong relationships.
The Bottom Line
Despite the increased expectations, millennials aren’t quitting. Forty-two percent think they’ll be wealthy or already are, compared to just 33% of Gen X and 20% of boomers.
Part of that confidence comes from Gen Z and millennials being more likely than other groups to have a formal plan for their financial goals versus 45% of boomers, who say they don't have a financial plan of any kind.
The survey also found that savers, investors and planners are more likely to attain financial comfort.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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