Americans and Money: How Well do you Manage Your Money?
Financial literacy is a huge concern in the United States. Close to half of adults say their biggest concern is their savings account situation. Financial literacy in the U.S. high school system is at historic lows and needs to be addressed. It’s sad but true that roughly one third of Americans have a long term savings and investing goals. Young adults need to start thinking about their retirement years because that time will arise quickly and you will be left short handed, especially since they are working longer hours for more money.
Handling Household Finances
2 in 3 households do not prepare a written or digital household budget.
Those who prepare budgets
by educational level
- High school or less – 26%
- College grads – 38%
by political leanings
- Conservative – 35%
- Moderate – 33%
- Liberal – 29%
by household income
- $75,000+ – 39%
- $30,000-$75,000 – 30%
- >$30,000 – 32%
Spending less compared to previous year
- 2009 – 2010 – 2011 – 2012 – 2013
- 57% – 51% – 42% – 39% – 32%
Only 3 in 10 Americans keep a long-term savings plan. With an increase in financial literacy among young adults, we could fight to raise that number year after year. What people have to realize is that social security funds are depleting every year and by the time we reach 62, we will only be able to receive approximately 80% of what we should be earning from it.
Adults who don’t pay all of their bills on time
– 2012 – 2013
– 33% – 26%
Money Troubles Persist
43% of U.S. adults say they do no have enough in their emergency savings account, and it is their biggest worry. Emergency savings accounts are an important account to set up because you never know what kind of situation that can arise where you would need to spend money on an emergency.
5% of your income should be automatically funding an emergency savings account.
How financial stress affects everyday life
- Sleeping less – 47%
- Less patience/seeing friends less often – 43%
- Eating more junk food/gaining weight – 31%
- Arguing more with spouse/significant other – 21%
- Getting sick more often – 17%
Teens and Money
- 81% of teenagers don’t have a checking account.
- 1 in 3 have a summer job.
- Only 1 in 10 teens are involved in helping pay bills or manage a budget in their household.
- 52% Teens who say they want to learn how to manage their money
What they already know
- How to write a check – 60%
- How to shop for the best deal – 66%
- Difference between debit cards and credit cards – 60%
- How to budget – 57%
- How to establish good credit – 38%
- How to balance a checkbook – 35%
- How credit card interest and fees work – 31%
- What a credit score is – 31%
- How income taxes work – 22%
- What a 401(k) is – 17%
Interested in personal finance topics
- Budgeting – 80%
- Saving – 75%
- Checking accounts – 68%
- Investing – 67%
- 57% of parents with kids in high school or college give schools below-average grades in teaching responsible spending.
- 35% give schools an F in financial literacy.
States that require at least one high school course devoted to personal finance
Infographic compliments of Online Accounting Degrees