SAN FRANCISCO (KRON) — Being considered “wealthy” is somewhat a subjective term as it is depends on multiple factors, such as the area’s cost of living. But how much do you need to be just that in San Francisco, which is widely regarded as one of the most expensive cities in the United States?
To be “wealthy” in San Francisco, one needs to have an average net worth of $5.1 million, according to Charles Schwab 2022 Modern Wealth Survey conducted in February.
Out of all the major cities in the country surveyed, San Francisco’s net worth was by far the largest. The Southern California region, which includes both Los Angeles and San Diego, had the second-highest average net worth of $3.9M to be “wealthy.” New York City ranked third-highest at $3.4M.
Nine other U.S. cities were surveyed: Atlanta, Boston, Chicago, Dallas, Denver, Houston, Phoenix, Seattle, and Washington D.C.
What It Takes to Be “Financially Comfortable”
In San Francisco, to be “financially comfortable” meant one’s average net worth is $1.7M — the highest amount of the cities surveyed. In second place, New York City stands at $1.4M.
Five of the 12 cities studied crossed the $1 million threshold. Southern California at $1.3M, Seattle at $1.2M, and Washington D.C. at $1.1M were the other three.
Methodology
Those who were surveyed were asked how much they think one’s net worth needs to be “wealthy” or “financially comfortable.” The researchers then compiled those answers from the residents, and the numbers were then averaged out to get an average net worth in said category.
To gather the 2022 San Francisco data, Charles Schwab conducted an online survey from Feb. 10-27 and sampled 750 city residents aged 21 to 75. For the national data, an online survey in February was conducted among a sample of 1,000 Americans in the same age group. More details on the methodology can be viewed here.
These numbers are based off of Charles Schwab’s sixth annual Modern Wealth Survey, which examined how Americans think about saving, spending, investing, and wealth, according to the company’s website.
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Last December, KRON4 reported what it takes to be “rich” in the San Francisco Bay Area. That story focused more on one’s annual income. This Charles Schwab study focuses on one’s net worth.
As an expert in finance and wealth analysis, I can confidently delve into the intricacies of the information presented in the article about the wealth benchmarks in San Francisco based on the Charles Schwab 2022 Modern Wealth Survey. My deep understanding of financial concepts and methodologies allows me to provide insights into the criteria used to define wealth and financial comfort in this context.
The article highlights the subjective nature of the term "wealthy," emphasizing its dependence on various factors, including the cost of living in a particular area. The key metric for assessing wealth in this study is the average net worth, a comprehensive measure that encompasses assets and liabilities.
According to the Charles Schwab survey, to be considered "wealthy" in San Francisco, individuals need to have an average net worth of $5.1 million. This figure signifies the financial threshold that residents of San Francisco perceive as indicative of wealth. Notably, San Francisco surpasses other major U.S. cities in this regard, with the Southern California region (including Los Angeles and San Diego) ranking second with an average net worth of $3.9 million, followed by New York City at $3.4 million.
The concept of being "financially comfortable" is also explored in the article, with the survey indicating that in San Francisco, an average net worth of $1.7 million is considered financially comfortable—the highest among the cities surveyed. New York City comes in second place with a financial comfort threshold of $1.4 million.
The methodology employed in the survey involves gathering opinions from residents on what they perceive as the required net worth to be considered wealthy or financially comfortable. The researchers then average out these responses to determine the benchmarks. In the case of San Francisco, Charles Schwab conducted an online survey from February 10-27, sampling 750 city residents aged 21 to 75.
It's crucial to note that these findings are part of Charles Schwab's sixth annual Modern Wealth Survey, which aims to understand how Americans perceive saving, spending, investing, and wealth. The study provides valuable insights into the financial perspectives of individuals living in different cities across the United States.
In summary, the article sheds light on the wealth criteria in San Francisco, emphasizing the subjective nature of wealth, and it draws attention to the significance of average net worth as a comprehensive measure in assessing financial status. The Charles Schwab survey serves as a reliable source of information, capturing the sentiments and perceptions of residents regarding wealth in various U.S. cities.
