What Americans Say It Means To Be Wealthy

When you picture a wealthy person, what comes to mind? A luxury car? A vacation home? A hefty investment portfolio?

According to new data from Charles Schwab, Americans have a more nuanced view of wealth than you might expect. The survey asked 2,000 Americans: “Which of the following factors contribute most to your personal definition of wealth?” The results showed that respondents ranked happiness (45%) essentially equal to the amount of money they have (44%).

That near-tie reveals something important about how we think about financial success in 2025.

Wealth: Beyond the Bank Balance

The Schwab survey results paint a picture of wealth that extends far beyond net worth statements. Here’s what Americans say matters most:

The data tells us that while money matters, Americans recognize it’s just one piece of a larger puzzle. Physical health ranks third at 37%, with mental health close behind at 32%. Meanwhile, material possessions rank dead last at just 17%.

What This Means for Your Financial Planning

This shift in perspective has real implications for how you approach your money:

Money Is a Tool, Not the Goal

If happiness ranks as high as your bank balance in defining wealth, it changes how you should think about spending and saving. The goal isn’t to accumulate the biggest pile of money possible — it’s to have enough money to support the life you want to live.

That might mean:

• Prioritizing experiences over things.
• Investing in your health and wellness.
• Building an emergency fund that reduces financial stress.
• Creating margin in your budget for what brings you joy.

Health Is Wealth (Literally)

With physical and mental health ranking so highly, Americans understand that medical problems can derail even the best financial plans.

This underscores the importance of:

• Maintaining adequate health insurance coverage.
• Building savings to cover out-of-pocket medical costs.
• Investing in preventive care.
• Recognizing that stress and poor mental health have real financial costs.

Relationships and Experiences Over Stuff

Quality of relationships (24%) and life experiences (24%) both significantly outranked material possessions (17%). This aligns with decades of research showing that experiences bring more lasting happiness than things.

From a financial perspective, this means:

• Don’t postpone meaningful experiences until “someday” when you have more money.
• Build a budget that includes regular spending on relationships and experiences.
• Question purchases of material goods — will they truly add value?
• Consider downsizing possessions to reduce financial overhead.

The Money Still Matters (Just Not Alone)

To be clear, the survey does not say that money is unimportant. Nearly half of the respondents still cited the amount of money they have as a key factor in wealth. That makes sense because money provides security, options, and peace of mind.

The key insight is that money works best when it serves your broader life goals. You need enough money to:

• Cover basic needs without constant stress.
• Build an emergency fund (typically 3-6 months of expenses).
• Save for retirement.
• Invest in your health.
• Support meaningful relationships.
• Pursue experiences that matter to you.

But once you’ve got those bases covered, chasing ever-higher account balances at the expense of everything else isn’t what most people consider wealth.

Money expert Clark Howard has always said the goal of money is freedom, not prestige.

“Money is a tool for reducing stress and adding joy. That’s real wealth.”