Many likely aren’t aware, but Oct. 12 is formally recognized as “National Savings Day.” As a finance professor, this topic is especially close to my heart. I love showing my students the power of compounding and the importance of starting early when it comes to saving.

As a kid growing up in the 1980s and 1990s, becoming a millionaire was a common daydream for me, which paired perfectly with my other dream of becoming a professional baseball player. The idea of being a millionaire conjured visions of expensive sports cars, palatial mansions, and the sense of being financially set for life. In fact, I remember as a kid watching the movie “Blank Check,” where an 11-year-old comes into possession of a blank check that he manages to turn into a million dollars. He lives it up as only a kid millionaire could, riding in limousines and buying everything imaginable.

The status of being a millionaire has long been a goal for many Americans. For example, I can’t help but be reminded of the Barenaked Ladies song “If I Had $1,000,000” where they sing about all the amazing things they would do if only they had a million dollars. However, as we now know and feel, especially given the recent inflationary environment, the value of a dollar changes over time. For example, the equivalent of being a millionaire in the year 1992 (the year the song was released) would be over $2.3 million today. In other words, for Americans who grew up hearing their parents talk about dreams of being a millionaire, that goal would likely need to be doubled, or even tripled, to hold the same meaning for their generation.

When we also consider that many Americans are living with substantial student loans, high mortgages or rent payments, and credit card debt, it helps explain why the acronym HENRYs was coined. The acronym stands for “High Earner, Not Rich Yet.” These individuals typically have salaries that past generations would assume would lead to them clearly fitting within the definition of “rich.” However, despite high salaries (most discussions of HENRYs argue that they make well into the six figures annually, with some arguing that HENRYs are likely to have salaries above $250,000 per year), this population struggles to feel financially secure and often fails to save at the rate needed to sustain the lifestyle they think they should be able to afford. While HENRYs illustrate how high salaries no longer guarantee wealth, others have taken a different path by focusing on disciplined saving and long-term investing.

Another factor to consider is that the average American lifestyle has ramped up over the decades. Combine that with the aim to retire at a reasonable age, leaving a substantial number of years to enjoy retirement, and it results in a need for Americans to save at a high rate to accumulate wealth for this extended retirement. Some Millennials, and others in adjacent generations, have maintained strong savings habits, allowing compounded returns in investments and retirement accounts to help reach the coveted millionaire status.

So, does being a millionaire still mean something? The short answer is yes, but not nearly what it used to mean. Those with accumulated wealth exceeding $1,000,000 between retirement accounts, home equity, and other sources are becoming quite commonplace. In fact, for many to enjoy the retirement they hope to have, reaching millionaire status is essentially becoming a necessity. So, if the Barenaked Ladies were to remake their famous 1988 song today, maybe the more appropriate title would be “If I had $3,000,000”.

It could be argued that true wealth is not about hitting a specific milestone, whether that milestone is becoming a millionaire or a three-millionaire, but more about creating the freedom to live comfortably and hopefully retire with enough to have an enjoyable retirement. As the world around us shifts, so too must our definition of financial success. Becoming a millionaire is still a milestone worth celebrating, but it may not be the finish line that many thought it once was. Let’s all celebrate National Savings Day with a purpose — to save smart and invest wisely.

Brian Walkup is a professor of finance in the Rollins College Crummer Graduate School of Business.

https://www.orlandosentinel.com/2025/10/12/commentary-being-a-millionaire-isnt-what-it-used-to-be/