From staff reports
Across all income brackets, Millennials said they don’t think they are wealthy, a new survey of 1,000 people who fall in the 23-38 age bracket conducted by LendEDU revealed.
The company set out to find out how the generation that is eclipsing the Baby Boomer generation frames personal finance and the concept of wealthy.
“The 1,000 respondents were split evenly between three income brackets, allowing us to analyze where millennials from each economic class are similar and different in their views on finance,” LendEDU research analyst Mike Brown said.
The three income brackets were divided as $49,999 or lower; $50,000 to $99,999; $100,000 or higher.
Across every income bracket, respondents overwhelmingly said that they did not consider themselves to be wealthy.
Overall, 31 percent of those surveyed felt that the $101,000 to $250,000 annual salary range would be considered wealthy. However, among the low-income bracket, the $75,000 to $100,000 range overwhelmingly was considered wealthy — 45 percent responded that they considered that to be the income range of a wealthy person.
“Interestingly, respondents that were part of the lower income bracket might have the best grasp of how much an individual needs to make to be considered wealthy,” said Brown. “According to Pew, a single person needs to make at least $78,281 to be classified as a wealthy individual.”
The average Millennial spends $1,476 on housing each month, and another $1,832 on non-housing expenses. For comparison sake, the most recent ApartmentList.com rent report for Dallas reported median rents of $890 for a one-bedroom apartment and $1,110 for a two-bedroom.
“Millennials in the high-income bracket ($100,000 in yearly income or more) are spending the most per month, while those in the low-income bracket ($49,999 or lower) are spending the least,” Brown said. “Further, middle bracket millennials ($50,000 – $99,999) are exactly where they should be relative to their income.”
Seventy-two percent who responded said they felt they were spending within their means.
The LendEDU survey also found that 60 percent of the Millennials who live with their parents are doing so because of financial constraints.
“Nearly a quarter of millennials believe they will be less wealthy than their parents in their lifetime,” Brown said.
To see more of the survey, click here.