More than 60% of Americans feel they are in a better position to achieve their financial goals than the generations that came before them, according to Schwab’s eighth annual Modern Wealth Survey, an examination of how Americans think about saving, spending, investing and wealth. This optimism is most pronounced among Boomers, with 66% believing they are more or as likely as older generations to reach their goals. However, every generation surveyed showed a similar level of confidence when asked to compare themselves to previous generations—Gen X (63%), Millennials (62%) and Gen Z (60%).
One factor likely driving this positivity is a surge in the number of Americans investing in the stock market. Schwab’s survey shows that almost three in five Americans (58%) are investing today, in line with recent Federal Reserve data that shows the same proportion of American households that own stocks—either in mutual funds, retirement accounts, or as individual shares. The Federal Reserve data is up from 53% in 2019 and the highest on record.
In fact, when asked why they are in better financial shape than previous generations, the Schwab survey indicates that Americans believe they have more ways to build wealth (50%), increased accessibility to investing (46%) and additional investment options available to them (46%).
Among Gen Z in particular, the top reason for increased financial confidence is improved access to investing. This generation, which starts with those born in the late 1990s, began saving and investing when they turned 19 years old on average, nearly half the age of when Boomers started investing (35), according to Schwab’s data.
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