2024 Schwab Modern Wealth Survey Shows Increasing Financial Confidence From Generation to Generation and Younger Americans Investing at an Earlier Age
The 2024 Schwab Modern Wealth Survey reveals significant financial confidence among Americans, with over 60% believing they are better positioned to achieve financial goals than previous generations.
Almost 58% of Americans are investing, with younger generations starting earlier. Gen Z, averaging 19 years old when they start investing, notably benefits from enhanced financial education in schools.
Although 70% of Americans are confident in their investment strategies, only 36% have a written financial plan. The survey highlights a gap between confidence and formal financial planning, with only 18% feeling fully in control of their finances.
- Over 60% of Americans feel better positioned financially than past generations.
- 58% of Americans currently invest, the highest level on record.
- 75% of those with a financial plan feel more in control of their finances.
- Gen Z starts investing at an average age of 19, significantly earlier than Boomers.
- 70% of Americans are confident in their investment strategies.
- Only 36% of Americans have a written financial plan.
- 18% of Americans feel fully in control of their finances.
- 43% of those without a financial plan cite insufficient funds as a major barrier.
- Only 24% believe social media has made managing investments easier.
Key Highlights:
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More than
60% of Americans feel they are in a better position to achieve their financial goals than the generations that came before them. - Nearly three in five Americans are investing today.
- Investing participation is higher among older generations, but younger generations are beginning to invest sooner.
- More than a quarter of Gen Z were taught about investing in school, significantly more than older generations.
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Just
36% of Americans have a written financial plan.
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 (
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 (
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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All Americans |
Gen Z |
Millennials |
Gen X |
Boomers |
Investing today |
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Age started investing |
30 |
19 |
25 |
32 |
35 |
Reasons Americans feel they’re more likely to reach their financial goals than previous generations |
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All Americans |
Gen Z |
Millennials |
Gen X |
Boomers |
There are more ways to build wealth now |
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Investing is more accessible now |
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There are more investment options now |
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There is better financial technology now |
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Financial education is more available now |
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When comparing themselves to their parents at their age, more than half of all Americans surveyed believe that they are doing a better job at investing (
“There has never been a better time to be an investor, and it’s a very positive sign to see that more Americans than ever before are engaged with their personal finances and taking steps to build long-term wealth, in particular younger generations who are getting started with saving and investing earlier in their lives,” said Jonathan Craig, Head of Investor Services at Charles Schwab. “We of course saw the number of Americans investing go up during the pandemic, but there are a lot of factors driving this trend that were in place before that and continue to drive engagement today. Industry changes like lower costs and minimums to invest and get advice, broader access to sophisticated platforms and tools, a proliferation of investing information such as research and educational content, and significant product innovations have all made investing more accessible than ever before. Creating access for more people to become investors was Schwab’s core mission when our firm started more than 50 years ago, and it’s still at the heart of everything we do today.”
Investing Information Age
Across all generations, nearly
Reasons Americans are confident in their investment strategy |
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All Americans |
Gen Z |
Millennials |
Gen X |
Boomers |
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Financial advice and knowledge are readily available |
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It is easy to access research about companies and investments |
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It is easy to access investments |
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I learned about investing at a young age |
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I was taught about investments in school |
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In addition to taking advantage of more widely available investment advice, educational resources, and investing tools, American investors today, particularly younger ones, are also exploring a wider range of investing strategies. Though buy and hold (
“Investing is becoming a passion for an increasing number of Americans—they are more engaged than ever with their investments and are taking advantage of all the information and knowledge at their fingertips,” said Rob Williams, CFP®, Managing Director of Financial Planning at Charles Schwab. “The result of this engagement and access to investing education and resources is a more sophisticated, more knowledgeable, and most importantly, more financially confident population of American investors.”
Investing strategies Americans currently implement |
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All Americans |
Gen Z |
Millennials |
Gen X |
Boomers |
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Buy and hold |
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Growth investing |
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Fractional shares investing |
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Direct indexing |
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Socially responsible investing |
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Robo-advisor investing |
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Thematic investing |
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The Planning Gap
When it comes to financial advice, Americans are more likely to engage with a professional financial advisor (
In fact, most Americans don’t follow any social media influencers for financial advice (
How Americans grade sources of financial advice |
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A/B |
D/F |
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Professional financial advisor |
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Accountant |
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Investment firm |
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Family |
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Friends |
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TikTok |
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Twitter/X |
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Despite increased access to investing, education and advice, those surveyed acknowledge that there’s more they can do, with fewer than one in five Americans (
One key area for improvement among Americans is financial planning. According to Schwab’s survey, only
Among those who don’t have a plan, most say it’s because they don’t have enough money (
“Investing and financial planning are more accessible and more affordable today than ever before, and while we see that Americans are making great strides with their personal finances overall, there is still room for improvement when it comes to more formalized financial planning,” said Williams. “Once clients start the process, they realize a financial plan isn’t just a document to file away. Whether you get started with a do-it-yourself digital financial plan or in-depth conversation with a planning professional, financial plans today include interactive digital planning tools to help monitor progress and understand how changes in your life goals or circumstances can impact your plans.”
About the Modern Wealth Survey
The online survey was conducted by Logica Research from March 4, 2024, to March 18, 2024, among a national sample of 1,000 Americans aged 21 to 75. An additional 200 Generation Z Americans completed the study. Quotas were set to balance the national sample on key demographic variables. Detailed results can be found here.
Disclosures
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or geopolitical conditions.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.4 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and
More information is available at https://www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.
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Hibah Shariff
Charles Schwab
415-667-0507
hibah.shariff@schwab.com
Source: The Charles Schwab Corporation
FAQ
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