Almost three-quarters of Americans (73%) say their personal
values guide how they make life decisions more today than they did
two years ago, and nearly an equal number (69%) say that supporting
causes they care most about are a top consideration when it comes
to their financial decisions, according to Schwab’s sixth annual
Modern Wealth Survey, an examination of how Americans think about
saving, spending, investing and wealth.
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Jonathan Craig (Photo: Business Wire)
When asked which personal values are their biggest motivators,
Americans prioritize doing what’s best for others, including the
environment and the greater good as well as their family and
friends, followed by saving more and reducing unnecessary spending.
These values drive how Americans spend and invest their money and
also impact how they think about employment.
“It’s a longer-term trend, but especially after the events of
the past two years, Americans are thinking a lot about how their
spending, saving and investing align with their personal situations
and preferences, including the issues and causes they care most
about,” said Jonathan Craig, Managing Director, Head of Investor
Services & Marketing at Charles Schwab. “Financial services
institutions need to help people invest in line with their
passions, preferences and beliefs, while recognizing that those
will differ by individual.”
Values-Driven Spending & Investing
More than eight in 10 Americans (82%) agree that their personal
values play an important role in how they manage their finances,
adding to the long list of factors Americans weigh when making
purchases. Personal values rank third on this list, just after
price and product features, with almost eight in 10 Americans (79%)
saying they try to use their purchasing power to support brands
that are aligned with their beliefs.
Looking ahead, seven in 10 Americans say they are likely to
change their lifestyles in the next 12 months to have a more
positive impact on the world. More than half say they intend to
shop local (58%), reduce their use of plastic bags (55%) and resell
or donate clothing (54%).
Americans are also prioritizing their values when investing,
according to Schwab’s survey. Almost three quarters of American
investors (73%) agree that their values guide their investment
choices and most (69%) say they invest in companies that align with
their personal values. When looking at the factors that influence
investing decisions, a company’s reputation (91%) and its corporate
values (81%) are almost as important as more traditional factors
like a company’s performance (96%) and its stock price (93%). As
personal beliefs and interests become more important, many
investors (84%) are also interested in having a more personalized
investment portfolio.
While making values-based decisions is growing in popularity
across all generations, it is even more pronounced among younger
Americans, particularly Generation Z:
All
Gen Z
Millennials
Gen X
Boomers
My personal values guide how I make life
decisions more today than they did two years ago
73%
82%
79%
70%
64%
I am likely to change my lifestyle in the
next year to have a positive impact on the world
70%
79%
74%
71%
57%
My personal values guide my investment
choices
73%
82%
75%
73%
68%
I invest in companies that align with my
personal values
69%
77%
73%
69%
63%
Prioritizing Values in the Workplace
This values-centered mindset extends to how Americans think
about employment. Nearly nine in 10 American workers say that it is
important for them to feel fulfilled by their work (89%) and to
have colleagues who respect their personal values (85%). More than
eight in 10 (84%) say that their values guide how they manage their
career with almost two-thirds (63%) saying they chose their current
employer based on its values.
As many as 59% of those surveyed say they would accept a lower
salary to work for a company that better represents their personal
values or interests. What’s more, nearly half of American workers
(43%) are interested in changing employers over the next 12 months,
with Gen Z even more likely to make a move (65%).
Wealth in 2022
As Americans reflect on what money means to them personally,
Schwab’s survey shows that ‘freedom’ (42%) tops the list, followed
by ‘flexibility’ (23%) and ‘opportunity’ (18%).
Americans also raised the bar again for what it takes to be
“wealthy” and feel “financially comfortable” in 2022:
2018
2019
2020
(pre-pandemic)
2021
2022
Average net worth it takes to be
“wealthy”
$2.4 million
$2.3 million
$2.6 million
$1.9 million
$2.2 million
Average net worth it takes to be
“financially comfortable”
$1.4 million
$1.1 million
$934,000
$624,000
$774,000
“Investing and planning tools that help people personalize how
they invest have never been more accessible,” said Rob Williams,
CFP®, Managing Director of Financial Planning and Wealth Management
at Charles Schwab. “In a recent survey of Schwab clients, nearly a
quarter say they’re already aligning their investments with values
and causes that are important to them, while another 20 percent say
they’re interested in making the shift. With this trend growing,
we’re helping more clients meet their evolving needs every
day.”
About the Modern Wealth Survey
The online survey was conducted by Logica Research from February
8, 2022 to February 27, 2022, among a national sample of 1,000
Americans aged 21 to 75. Quotas were set to balance the national
sample on key demographic variables. Detailed results can be found
here.
About the Schwab Retail Client Sentiment Survey
This data is collected by Schwab quarterly via an online survey
of clients with retail assets of at least $2,000. There is
oversampling to achieve adequate sample sizes for sub-group
analysis, and then application of a weighting scheme to create a
total respondent population that is representative of Schwab’s
client base. Q1 study was fielded at the beginning of the quarter:
January 5-16, 2022. Detailed results can be found here.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
Disclosures
The Charles Schwab Corporation (NYSE: SCHW) is a leading
provider of financial services, with 33.6 million active brokerage
accounts, 2.2 million corporate retirement plan participants, 1.6
million banking accounts, and approximately $7.86 trillion in
client assets as of March 31, 2022. Through its operating
subsidiaries, the company provides a full range of wealth
management, securities brokerage, banking, asset management,
custody, and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer
subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc.,
and TD Ameritrade Clearing, Inc., (members SIPC,
https://www.sipc.org), and their affiliates offer a complete range
of investment services and products including an extensive
selection of mutual funds; financial planning and investment
advice; retirement plan and equity compensation plan services;
referrals to independent, fee-based investment advisors; and
custodial, operational and trading support for independent,
fee-based investment advisors through Schwab Advisor Services. Its
primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC
and an Equal Housing Lender), provides banking and lending services
and products. More information is available at
https://www.aboutschwab.com.
TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are
separate but affiliated companies and subsidiaries of TD Ameritrade
Holding Corporation. TD Ameritrade Holding Corporation is a wholly
owned subsidiary of The Charles Schwab Corporation. TD Ameritrade
is a trademark jointly owned by TD Ameritrade IP Company, Inc. and
The Toronto-Dominion Bank.
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