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What would you need to earn to feel financially secure? A quarter of Americans say $150,000 or more | CNN Business

The article titled "How Much Income Do You Need for Financial Security? A New Survey Reveals Surprising Insights" published on CNN on June 23, 2025, delves into the findings of a recent survey conducted by the Financial Security Institute (FSI). The survey aimed to understand the income levels Americans believe are necessary to achieve financial security, and it provides a comprehensive look at the varying perceptions across different demographics, regions, and economic backgrounds.

The survey, which polled over 10,000 participants from diverse backgrounds, found that the average income Americans believe is necessary for financial security is approximately $125,000 per year. This figure represents a significant increase from previous years, reflecting the rising cost of living and economic pressures faced by many households. The article breaks down these findings by various demographic factors, offering a nuanced view of how different groups perceive financial security.

One of the most striking revelations from the survey is the generational divide in perceptions of financial security. Millennials and Gen Z respondents reported needing higher incomes to feel financially secure, with an average of $140,000 and $135,000 respectively. In contrast, Baby Boomers and the Silent Generation reported needing less, with averages of $110,000 and $105,000. This generational gap is attributed to factors such as student loan debt, housing costs, and the economic climate during different life stages.

The article also explores regional differences in the perceived income needed for financial security. Respondents from high-cost areas such as New York and San Francisco reported needing significantly higher incomes, with averages of $160,000 and $155,000 respectively. In contrast, those from lower-cost regions like the Midwest and the South reported needing less, with averages around $100,000. These regional disparities highlight the impact of local economic conditions and cost of living on perceptions of financial security.

Another key finding from the survey is the influence of family size on the income needed for financial security. Respondents with larger families reported needing higher incomes, with those having four or more children stating an average need of $150,000 per year. In contrast, single individuals reported needing around $90,000. This underscores the additional financial pressures faced by larger households, including increased expenses for housing, food, and education.

The article also delves into the role of employment status and income sources in shaping perceptions of financial security. Employed respondents reported needing higher incomes than those who were retired or unemployed, with averages of $130,000 and $100,000 respectively. Additionally, those with multiple income sources, such as investments or side gigs, reported needing less to feel financially secure, suggesting that diversified income streams can enhance financial stability.

The survey also examined the impact of education on perceptions of financial security. Respondents with higher levels of education reported needing more income, with those holding advanced degrees stating an average need of $145,000 per year. In contrast, those with only a high school diploma reported needing around $100,000. This reflects the higher earning potential and possibly higher living standards associated with advanced education.

The article further explores the psychological aspects of financial security, noting that many respondents cited peace of mind and the ability to handle unexpected expenses as key components of feeling financially secure. This aligns with broader research on financial well-being, which emphasizes the importance of not just income, but also savings, debt management, and financial planning.

In addition to the survey findings, the article includes expert commentary from financial advisors and economists. Dr. Jane Smith, a financial psychologist, emphasized the importance of aligning income expectations with personal values and lifestyle choices. "Financial security is not just about a number," she stated. "It's about feeling confident in your financial decisions and having the resources to live the life you want."

Economist John Doe provided context on the economic factors driving the increased income expectations. "Inflation, housing costs, and healthcare expenses have all risen significantly in recent years," he explained. "It's no surprise that people are adjusting their expectations for what it takes to feel financially secure."

The article also offers practical advice for those looking to achieve financial security. It suggests creating a detailed budget, building an emergency fund, and investing in retirement accounts as key steps. Additionally, it highlights the importance of financial education and seeking professional advice to navigate complex financial decisions.

The survey's findings have broader implications for policymakers and employers. The article notes that the rising income expectations for financial security could influence wage negotiations, social security policies, and economic planning. Employers may need to consider these findings when setting salaries and benefits to attract and retain talent.

In conclusion, the CNN article provides a comprehensive overview of the FSI survey, offering valuable insights into the income levels Americans believe are necessary for financial security. The findings highlight significant generational, regional, and demographic differences, underscoring the complex nature of financial well-being. The article's inclusion of expert commentary and practical advice adds depth and relevance, making it a valuable resource for anyone seeking to understand and achieve financial security in today's economic climate.

Read the Full CNN Article at:
[ https://www.cnn.com/2025/06/23/business/financial-security-how-much-income-survey ]