Think Advisor, USA Today, and Yahoo! recently covered the latest wave Charles Schwab’s Modern Wealth Study with Logica Research. The study was conducted to discover what financial stability and financial wealth means to Americans. Due to current times, the research uncovered many changes from this June 2020 study compared to the January 2020 wave of the study.
Re-Evaluating Financial Planning
As noted in the cited articles, the Modern Wealth study showed consumers starting to re-evaluate and re-prioritize for the financial health of their future with a new perspective. People reported that they are saving up for emergencies and also making a long-term plan for the future, and how important it is to Americans right now to have money easily accessible—just in case.
Financial Stress During COVID-19
Americans report that COVID-19 has brought 15% more financial stress today when compared to late 2019. As noted in the Think Advisor article, increasing stress levels might have a lasting effect, even after the pandemic subsides.
Changing Ideas of Financial Health
One of the biggest statistics that has changed is the average answer to the question on what it takes to be financially comfortable. Currently that average is a net worth of $655,000, whereas in January it was $934,000 according to those surveyed. The survey also found that: “57% of Americans have been financially impacted by the pandemic.”
What is Considered Financial Wealth
As stated in the USA Today, respondents have shifted in what it means to be wealthy. In June, respondents considered $2 million in net worth to be considered wealthy, down by 23% from the $2.6 million they considered in January.
Background: Logica Research conducted two surveys for Charles Schwab. One was Jan 9-16, 2020 and the other was June 25 - July 2, 2020. Those surveyed were 1,000 consumers aged 21-75 in the U.S.