The Blubber

A recent report reveals that Generation Z—those born between 1997 and 2012—define "financial success" as earning nearly $600,000 annually. This figure is nearly double the salary considered successful by other generations and significantly exceeds the average American's yearly income.

The survey, conducted by financial services company Empower, found that Gen Zers associate financial success with an annual income of $587,797 and total assets of $9.47 million. These benchmarks are starkly higher than the current averages: the Bureau of Labor Statistics lists the annual earnings of a full-time worker at $60,580, while the Federal Reserve's 2022 Survey of Consumer Finances notes the average American has $62,410 in savings, checking, and investment accounts combined.

A Digital-Driven Perspective on Wealth

The unique upbringing of Gen Z—immersed in social media and its perpetual stream of curated, glamorous lifestyles—may partly explain these elevated standards. Gen Z also matured during a time marked by significant financial, healthcare, and environmental crises, as well as political turbulence.

Eric Arzubi, a child and adolescent psychiatrist and assistant clinical professor at Yale's Child Study Center, expressed curiosity about these perceptions:

"If they're looking at almost $600,000 a year, they're not just thinking about paying bills."

Gen Z is the first generation to grow up fully integrated with the internet. Platforms like Facebook, Instagram, and TikTok have been formative, exposing them to countless aspirational portrayals of luxury and success. Over 90% of Gen Z uses social media, where even casual scrolling can present comparisons that redefine one's perception of achievement.

Arzubi notes this phenomenon as a natural human behavior:

"We all know happiness doesn’t necessarily align with what’s seen online, but that doesn’t stop the comparisons."

Psychologists term this "upward comparison," where individuals measure themselves against those with more resources, often leading to dissatisfaction. While it can inspire motivation for change, it frequently leaves users feeling inadequate, especially compared to the curated lifestyles showcased online.

Generational Differences in Financial Goals

Compared to Gen Z's lofty benchmarks, Millennials (born 1981–1996) define financial success as earning $180,865 annually, while Gen X (1965–1980) cites $212,321. Boomers (1946–1964) set their benchmark at $99,874 per year.

However, these differences might reflect life stage rather than a true generational divide, says Jolie Silva, a psychologist and Clinical Director of New York Behavioral Health.

"Asking teenagers versus people in their 60s confounds the data," Silva explains. "You’re comparing aspirational young adults to individuals with decades of lived experience."

Even if Gen Z's perceptions hold across time, Silva acknowledges that rising costs and expanded exposure to luxury through social media influence their expectations:

"What Gen Z has been exposed to is exponentially broader in range and depth than prior generations, often tied to financial success."

A New Paradigm of Success

While Gen Z’s views on financial success are ambitious, they reflect a generational context shaped by evolving economic realities and unprecedented digital access. Whether these benchmarks will adjust with age or represent a lasting shift remains to be seen.