Americans increasingly are saying that their personal values and supporting causes they care most about are top considerations when it comes to their financial decisions and investing.
According to Schwab’s 6th annual Modern Wealth Survey—which examines how Americans think about saving, spending, investing and wealth—nearly three quarters (73%) of American investors 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, the survey shows.
Spending and Investing
In addition, more than 8 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 79% saying they try to use their purchasing power to support brands that are aligned with their beliefs.
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.
“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,” says Jonathan Craig, Managing Director and 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 in the Workplace
This “values-centered mindset” also extends to how Americans think about employment. Nearly 9 in 10 American workers (89%) say that it is important for them to feel fulfilled by their work and to have colleagues who respect their personal values (85%), Schwab notes. More than 8 in 10 (84%) say that their values guide how they manage their career with 63% saying they chose their current employer based on its values.
Moreover, 59% of respondents say they would accept a lower salary to work for a company that better represents their personal values or interests. And 43% of American workers are interested in changing employers over the next 12 months, with Gen Zers (65%) and Millennials (49%) even more likely to make a move.
Wealth in 2022
Meanwhile, 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%).
The amount that survey respondents believe is necessary to be “wealthy” and feel “financially comfortable” in 2022 has inched up again after declining during the pandemic.
|
|
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 |
Schwab’s Modern Wealth Survey was conducted by Logica Research from Feb. 8–27, 2022, among a national sample of 1,000 Americans aged 21 to 75.
