I don't think I put as much stock in "wealth" as you do. You can be wealthy and do all kinds of fantastic things with your money for yourself and other people. You can also be wealthy, bitter, unhappy, and very hard to be around. I have had the chance to observe various examples of this. I think that once you get past a moderate income where you are able to take care of your needs and a little bit more that wealth has no correlation with happiness.
Actually we probably agree here. "Wealth" in my case is saving up for a retirement someday with no children to back-stop us or even invite us into their home, trying to avoid awful Medicare/Medicaid retirement homes in retirement, having every loan paid off, and no plans to actually see a dime of Social Security...
...while still keeping enough free cash-flow going... to be an aircraft owner during both my "earning" and retirement years.
I consider THAT... "wealthy". Anything beyond that is just gravy.
So... that "little more" has to also include investments for the future that's coming for all of us...
If I have to dump the airplane or flying to make sure the retirement nest is feathered, then that's "Just gettin' by", and not real livin'!
Most of those kids starting off with $250K in student loans (again, don't forget the interest payments... they've started a backwards trend in Net Worth before they've even earned a penny) ... need to plan for at least one furlough and drop in salary in their lifetimes as airline pilots, and will only be able to retire comfortably at that level you described... needs met, a little more... if they are VERY frugal in their late 20s and early 30s and invest.
Compound interest won't be helping them nearly as much after their 20s and early 30s. Compound interest can completely kick "education's" butt if you start early enough and keep adding.
And I mean a real plan... not just a "let's hope it'll all work out", kum-bah-yah attitude toward how to live in retirement... show me the spreadsheet. Plans with real numbers can always change... A lack of a plan is just a lack of a plan.
The fact that "educators" show kids how to do the math, but don't show them how to apply it to their own finances, is completely appalling to me.
The secondary fact that educators can say with a straight face that a $250K bill with interest is an "investment in your future" right after teaching a math class, makes me want to hurl. Seriously. No honor in selling the next generation down the river.
Especially needed are more discussions about the effect of compound interest... as it relates to the compounding frequency... for our young people.
Credit cards... MONTHLY compounding... 28%+ interest (more for these kids with no credit history and little income)...
Credit cards are some of the most evil financial tools on Earth. If the card swiper at the store were to calculate the total price of the purchase at the cardholder's interest rate, if they continued paying for the item at the minimum payment, people would run screaming away.
Taxes too. A "1%" increase in annual taxes sure doesn't sound all that bad does it? How about if we calculate the effect of that 1% on lifetime earnings. Not so good then, is it? Same effect, just wage-slaves to a different master.
My favorite "weird things to make note of" in finance, is that Federally backed student loans are not collectible in full at death.