NEWS
2024 Schwab Modern Wealth Survey shows increasing financial confidence from generation to generation and younger Americans investing at an earlier age
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 .
A new Bread Financial study reveals 26 % of consumers feel financially incompatible with friends
Bread Financial , a tech-forward financial services company that provides simple , personalised payment , lending and saving solutions , has released findings from a national study that explores the impact money has on friendships . Among the most interesting findings , 21 % of survey respondents have lost a friendship over money , and 26 % feel they are financially incompatible with their friends .
Findings show lending money to friends can come at a high cost . More than half ( 57 %) of respondents reported borrowing money from friends at some point , with bills being the most common reason at 63 %. Nearly a third ( 30 %) of these borrowers also admitted they have never repaid their friends . This often leads to friction in friendships , with 33 % of responders indicating that repeated borrowing without repayment was a top driver of relationship tension . Women are less likely to let finances damage their friendships than men . More than half ( 52 %) of female respondents say financial differences have never caused tension or conflict in their friendships , yet only 39 % of male respondents could say the same . Additionally , slightly more men ( 24 %) have lost friendships over money , compared to 17 % of women .
“ Money is not the be-all , end-all of any friendship – but it can play a significant role between even the best of friends ,” said Lindsay Bryan-Podvin , a behavioural finance expert and consultant to Bread Financial . “ This doesn ’ t mean people from different financial backgrounds or how they choose to spend their money can ’ t have meaningful connections . However , to develop and sustain strong friendships where money is a recurring factor , it ’ s crucial to have open money conversations , including setting clear financial boundaries and discussing money goals . A healthy friendship includes navigating money conversations , and there are ways to do it that can help you feel closer , too .”
10 www . intelligentfin . tech