How do you know when you have ‘made it’ financially in life?

Less than a third of Americans (31%) feel they have succeeded financially in life, according to a new study.

A survey of 2,000 employed Americans, evenly divided by generation, found that of those who don’t think they’re there yet, just over half (54%) believe they are well on their way and will succeed financially. it is during their lifetime.

Interestingly, more millennials than any other generation (34%) believe they have already made it.

However, growth isn’t always easier: only 27% of adults believe they’ve achieved financial success, and of those who haven’t, only a third believe they will one day.

What hinders them? Conducted by Talker Research for BOK Financial, the survey results found that Americans believe external factors will influence their financial goals: the results of the presidential election (46%), interest rate changes (45%) and the stock market. work (42%).

Eight in 10 say their definition of “making it financially” has evolved over time (79%), and the average net worth identified for “making it financially” is about $234,000.

Half of respondents said that considering how their parents described their finances when they entered adulthood, it is more difficult to provide for them financially today than before (54%).

“Uncertainty around the economy, politics and other external factors can weigh heavily on people, and they are right now,” said Jessica Jones with BOK Financial Advisors, a subsidiary of BOK Financial. And financial hardships like high inflation and interest rates can make it feel like it’s harder to get ahead, but small steps are essential. If one is trying to see success in their financial future, it is important to just start, even with a small savings account.

Today, “doing finance” comes with its own barriers; according to respondents, some of them include the high cost of living (42%) and inflation (26%) or even their personal spending habits (7%).

Surprisingly, nearly half of baby boomers (48%) and Gen X (47%) respondents cite a higher cost of living as more of a barrier compared to Gen Z (34%).

On the other hand, Gen Z (28%) and millennial (30%) respondents were more likely to count inflation affecting them.

Not only is “doing it” more difficult to achieve, but the results look completely different from previous generations.

According to the survey, owning a house (78%) or a vehicle (64%) is necessary to be financially successful today, while having children (40%) or marriage (34%) were key indicators for their parents which are not. It’s not that important now.

Earning a college degree (30%) and having a long-term career (48%) are also more consistent with modern financial success than that of the respondents’ parents.

When it comes to how they’re spending their money today, Gen Z (27%) and Millennials (31%) said the largest amount of their money is spent on their family, while Gen X (43%) ) and baby boomers (50%) are putting their finances toward retirement above all else.

For others, the opportunity to afford planning for retirement will come later: around age 41 for Gen Zers and age 46 for millennial respondents.

Even though they’re spending on their loved ones, Gen Z is also keeping their own needs in mind.

They had the highest percentage of respondents who said they were better off using their money to buy items that make them happy (20%).

Although the older generation prioritizes using money practically, baby boomers were less confident in their financial future during retirement (33%) and their ability to plan for the future without any professional help (49% ); Gen Z is most confident they can do it (70%).

“While people can feel confident that they can manage money on their own, I would really advocate for education,” Jones said. “Young people in particular 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.”

With all the learning to do, Americans are more interested in hearing from those who are older than they are from their peers (64% vs. 56%) when it comes to financial advice.

Although respondents are least interested in financial advice from social media (41%), 45% say social platforms influence their perceptions of what it means to make it financially.

Gen Z expressed the greatest interest in getting financial advice from social media (64%) and, in turn, were more likely to say it affects their perception of what it means to “make it” financially .

Survey methodology:

Talker Research surveyed 2,000 employed Americans evenly divided 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 October. 18 and October. 24, 2024.