Many Americans Feel Stretched and Overwhelmed with Debt, Which Keeps Them from Saving Money Regularly
Eleanor Blayney, CFP®, Consumer Advocate, CFP Board
(Washington, DC, Monday, August 22, 2016) – A national survey released by the Certified Financial Planner Board of Standards, Inc. (CFP Board) shows that Americans are struggling to save money due to debt and other financial pressures. It reveals that some Americans are feeling optimistic about their financial futures; however, most are fraught with underlying uncertainty, with nearly 8-in-10 citing concerns about their ability to save. The survey finds that many Americans feel stretched and overwhelmed with debt, which keeps them from saving money regularly.
Additionally, the survey includes a segmentation analysis that focuses on respondents’ propensity to save regularly – including for retirement – and their general feelings toward wealth management.
The analysis found that Americans fall into four distinct categories that are nearly equal in size:
- Concerned Strivers – What’s important for this group is making sure saving comes first in the spending plan, even if in limited amounts, and finding more room in the budget to support this savings
- Confident Savers – This group’s financial confidence as well as their success later in life is not just a result of positive thinking or luck, but of action taken early to save for their future
- Tentative Savers – For them, saving regularly is important, but saving enough is also necessary to build financial confidence
- Stretched Worriers – Those in this group are unable to save, and must take measures to improve your value in the workplace
Level of income, education and investable assets strongly correlate across all segments. Not surprisingly, those with higher income, education and investable assets are generally more confident and positive toward savings, feel better informed about their savings options, and have positive attitudes toward their financial futures.