Benzinga - by Michael Cohen, Benzinga Editor.
A new survey has shed light on a rising trend of financial confidence among Americans.
The results particularly highlight the younger generations’ inclination towards starting their investments at an earlier age.
What Happened: Over 60% of Americans feel they are in a better position to achieve their financial goals compared to previous generations. That’s according to the 2024 Schwab Modern Wealth Survey, unveiled by Charles Schwab.
Almost three out of five Americans are currently investing, with the younger generations starting to invest earlier than their predecessors.
Rob Williams, Managing Director of Financial Planning at Charles Schwab, said, "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."
More than a quarter of Gen Z learned about investing in school, the results show. That’s a significant rise compared to older generations. However, only 36% of Americans have a written financial plan.
Americans attribute their improved financial outlook to several factors:
- More ways to build wealth (50%)
- Increased accessibility to investing (46%)
- A greater variety of investment options (46%)
- Better financial technology (45%)
- More available financial education (43%)
Jonathan Craig, Head of Investor Services at Charles Schwab, highlighted that industry changes such as lower costs and minimums to invest, broader access to sophisticated platforms and tools, and significant product innovations have made investing more accessible than ever before.
Why It Matters: The survey results align with the findings of the 2023 Schwab Modern Wealth Survey, which pointed to a shift in how Americans define wealth. The 2023 survey revealed that about 70% of Americans prioritized life experiences over owning luxurious items, emphasizing experiences and a healthy work-life balance over material gains.
This shift in perspective towards wealth and investment among Americans could reshape the financial landscape in the years to come.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image generated using artificial intelligence via Midjourney.
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