The idea of wealth is subjection for Americans, according to a new study by magnifymoney.com. Photo by Juan Marin on unsplash.com

When it comes financial optimism, members of Gen Z have the rest of us beat, according to a new survey of 2,000 US consumers.

They also have different ideas about the best way to build wealth.

The survey conducted by financial information website magnifymoney.com found that 72% of Gen Zers — currently age 18 to 25 — believe they’ll become wealthy one day. Overall, 44% of Americans think they’ll be wealthy in their lifetime, down from 51% in 2019. 

The past three years saw millennial (age 26 to 41) expectations of wealth drop from 66% in 2019 to 59% today.

Ismat Mangla, MagnifyMoney executive editor, attributes Gen Z enthusiasm to more than just youthful optimism.

“We are surrounded by extremes of wealth and poverty, and I think younger folks naturally gravitate to the more positive extremes,” Mangla says. “What’s more, the concept of investing is so much more accessible today, and I know many Gen Zers believe they can harness the power of the market to build wealth.”

In fact, Gen Zers are the only generation to think investing in stocks is a better wealth-building strategy than homeownership. Some 26% of Gen Zers report playing the stock market as their top strategy for wealth building, compared to 16% who reported owning a home as the best wealth builder. Nearly half (46%) of baby boomers (age 57-76) say owning a home is the best strategy.

Overall, 27% of Americans believe owning a home is the best wealth-building strategy.

Milennials are the biggest segment (23%) to believe investing in cryptocurrency is the best wealth builder. For Gen Z, the number is 19%, for Gen X (age 42 to 56) it’s 11% and for Baby Boomers, it’s 4%.

The survey also finds the definition of “wealthy” isn’t shared across the board. The majority (55%) of American believe wealth means living comfortably without worrying about finances. Another 47% believe it means feeling financially secure, while 38% think it’s being debt-free.