The US is one of the richest countries in the world and boasts more billionaires than any other nation, but how much money does a person need to be considered wealthy? The average American believes that you need a net worth of $1.9 million to be well-off, according to Schwab’s 2021 Modern Wealth Survey, which has dropped from $2.6 million in 2020. But the amount people think you need to be rich actually differs hugely depending on how old you are. Click or scroll through to see how much money each generation believes a person needs before they can call themselves wealthy.

The youngest group in this round-up, millennials also have the lowest bar in terms of what “wealthy” means, saying it applies to those with a net worth of $1.4 million. Those born between 1981 and 1996 have suffered the economic brunt of the coronavirus pandemic, and 32% of American Millennials say that COVID-19 has had an extreme impact on their financial stability, according to a survey of 9,000 Americans in May and June 2020 by Age Wave and Edward Jones.

Millennials earn 20% less than baby boomers did at their age, according to think tank New America, while Schwab’s data also revealed that millennials are the “most financially stressed” generation. Both these factors may contribute to why Millennials think you need less to be considered wealthy. The youngest millennials are also still earning entry-level salaries, while older members of the generation may only be starting to hit their peak earning years.

As respondents get older, the average net worth they consider constitutes wealthy increases. This may be because older generations have had more time to accumulate wealth themselves. Those born between 1965 and 1980, known as Gen X, say a person with assets worth $1.9 million is wealthy, which is in line with the overall US average across all generations. Interestingly $1.9 million is more than double the average net worth across the country. 

As a group America's Gen X has a combined wealth of $28.5 trillion, which is a notable increase compared to the $5.19 trillion owned by millennials. And so, perhaps unsurprisingly, only 26% of American Gen Xs say that COVID-19 has had an extreme impact on their financial stability, according to a survey by Age Wave and Edward Jones, less than the 32% of Millenials who reported an extreme impact.

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The definition of wealthy shoots up to a net worth of $2.5 million among Baby Boomers, which includes anyone born between 1946 and 1964. This is still a long way off the amount needed to be part of America’s wealthiest 1% though, as that only applies to those with a net worth of $4.4 million or more, according to the Knight Frank Wealth Sizing Model.

Baby Boomers are considered the most economically prosperous generation as they hold over half (53.2%) of all wealth in America – that’s 10 times more than Millennials, as reported by Bloomberg. Baby Boomers have also reached, or even surpassed, their peak earning years, which may account for their higher valuation of what it means to be wealthy. This generation has also fared best financially during the coronavirus crisis, with only 16% reporting an extreme negative impact on their financial stability, according to the Age Wave and Edward Jones survey.

Now read: How much money you need to be in the top 1% in different countries