Most Millennials Believe They Need to Be Millionaires to Thrive, a New Report Says

Millennials have money on the mind—a lot of money.

More than half (54 percent) of the members of that generation (people born between 1981 and 1996) think they need to be a millionaire to thrive in today’s economy, according to a new study from Arta Finance. Moreover, 50 percent believe they must reach multimillionaire status to feel that same sense of security.

“Millennials need more money,” Samita Malik, the chief insurance officer at the digital wealth management platform, said in a statement. “That’s because the economy has shifted and it’s become more expensive for consumers to make ends meet. As a result, many millennials are feeling behind as the threshold to achieving financial stability continues to climb.”

Most Millennials surveyed by Arta Finance have yet to reach the seven-figure club—just 16 percent said they had a net worth above $1 million—but they remain optimistic about their chances to hit that milestone: A healthy 46 percent said they believe they’ll one day become a millionaire. However many in the generation have yet to feel financially stable due to sustained inflation, the rising cost of living, and unaffordable housing, Arta Finance says. In total, 56 percent of Millennials said that becoming a millionaire feels impossible under current economic conditions.

To reach their millionaire goals, Millennials are undertaking several strategies, including classic ones like saving for retirement (38 percent) and budgeting and tracking expenses (37 percent). Some are turning to the stock market (28 percent), while others have taken on a side hustle to increase their cashflow (28 percent). That’s perhaps a good sign when it comes to their financial future, but 57 percent of Millennials are still mostly living paycheck to paycheck.

How do Millennials compare to other generations when it comes to the millionaire question? They certainly seem more focused on achieving that milestone: Some 44 percent of Gen Xers said they need to be a millionaire to survive today, while just 27 percent of Boomers or older share the same belief. And among those older generations, morale is low when it comes to the likelihood of that happening—only 27 percent of Gen Xers and 13 percent of Boomers were optimistic about becoming a millionaire.

So even though many Millennials may have a long way to go to hit the $1 million mark, they’re holding out hope that one day it’ll happen for them.