What’s the Definition of Rich
My daughter asked the other day what's the definition of rich. Here's the answer: Let’s start with the clearer economic signs. Investopedia’s analysis of 2023 shows that the top 1% of American citizens make an average of $407,500 annually. This is for individuals, though, and when it comes to households, this number goes up to $591,550. Making these means you’re making at least 7 times more than the average person. Another direct indicator is the amount of tax you pay. If you’re having to deal with a 35% or 37% tax on your income (at least $105,664, as Nerdwallet shares), then you’re basically rich. It’s important to note, however, that the super-rich billionaires actually pay less tax than the average American due to very smart financial moves. According to the Fed, the median household’s net worth is about $193,000, or roughly $215,000 after adjusting for inflation. Meanwhile, the wealthiest 1% of Americans control about one-third of the nation’s wealth, while the bottom half owns only a small share. Many say wealth is in your mindset, and rightfully so. When you start making a lot of money or when you get accustomed to a high-class social environment, you start looking at opportunities differently. You look at money as a tool to create wealth, and you also use your networks for collaboration instead of competition. Although there’s no exact cutoff to receive financial aid for college, people who are rich or from rich households typically find it difficult to qualify—and it’s not always about bad grades. Even if you get financial aid, you’ll also notice that it does not cover anything close to the full cost of tuition. The richer you are, the higher your credit limits, and the









