A national survey of 2,000 Americans, evenly split by generation,
revealed
nearly half (43%) of the respondents don’t know
what a 401(k) is. The comprehensive survey examined
Americans’ financial literacy, commitment to learning and adopting
healthy money habits, and feelings regarding their bank accounts
and financial futures.
The study, commissioned by Beyond
Finance for Financial Practice Week and conducted
by OnePoll, revealed that despite these startling
knowledge gaps, only two in five respondents or 39%, consider
themselves more financially literate than the average person.
The results indicated a significant lack of confidence among
respondents regarding their financial literacy, with only 30%
believing they could win a game of personal finance trivia. Over a
third (35%) confess to not knowing the term “interest” in a
financial context.
Four in 10 Americans admit they procrastinate when implementing
healthy financial habits. Gen Z are most likely to make financial
improvements, while millennials are least likely to make changes to
improve their finances.
The top reasons cited for postponing personal finance tasks
include stress (25%), feeling their financial health is already
poor and can’t get any worse (16%) and forgetfulness (13%).
The study also reveals that Americans typically check their
banking app twice daily. Yet, exactly half of respondents say they
feel nervous when opening their banking portal, with Gen Z feeling
most uncomfortable (65%) and baby boomers feeling the most calm
(26%).
“Unfortunately, avoiding looking at your finances and making
healthy changes is incredibly common,” said Erika Rasure,
Ph.D., chief financial wellness advisor of Beyond
Finance. “Some people tend to neglect taking stock of
their financial situation, and others can become nervously consumed
by it. There’s a middle ground to take when improving your
financial health—learn healthy money habits, pay attention and make
small, achievable adjustments to your spending and habits.”
Regarding budgeting habits, eight in ten respondents try to hold
themselves accountable to a monthly budget, with millennials and
baby boomers tying for the best-laid financial plans (81%).
Of those who create a monthly budget, respondents only stick to
it 66% of the time on average, with baby boomers exhibiting the
highest accountability (76%) and Gen Z deviating the most from
their budgets (58%).
For those trying to save money, the most popular strategies
include buying on-sale items (53%), using coupons and discount
codes (47%), limiting spending on clothing (45%) and shopping at
discount stores (42%).
However, a considerable portion of respondents resort to more
drastic measures to save money, such as infrequent social outings
to bars and restaurants (39%), limited travel or not traveling at
all (36%), rarely or never buying coffee at coffee shops (35%) and
rarely or never buying gifts (32%). Notably, 33% of respondents
said they never take vacations.
Financial habits can also influence relationships, as evidenced
by nearly four in ten (39%) respondents reporting adverse effects
on their relationships due to their or their partner’s unhealthy
spending habits.
A majority of those in relationships (63%) agreed that learning
about personal finance as a couple would increase their chances of
improving money habits successfully in the future.
“The first step in a happier financial future is education,”
said Dr. Rasure. “The more you know about money and personal
finances, the more equipped you’ll be to make better decisions and
create a plan to meet your goals. That’s why Financial Practice
Week is important. We want to encourage people to learn the money
habits and practices they’ve been putting off so they can make
progress toward a more stable, optimistic future.”
For more information about Accredited Debt Relief and Beyond
Finance or their superior work with clients to move beyond debt,
visit www.accrediteddebtrelief.com or www.beyondfinance.com.
Survey methodology:This random double-opt-in
survey of U.S. adults split evenly by generation (500 Gen Z, 500
millennials, 500 Gen X, and 500 baby boomers) was commissioned by
Beyond Finance between Feb. 16 and Feb. 22, 2024. It was conducted
by market research company OnePoll, whose team members are the
Market Research Society members and have corporate membership to
the American Association for Public Opinion Research (AAPOR) and
the European Society for Opinion and Marketing Research
(ESOMAR).
About Beyond Finance, LLCBeyond Finance, LLC,
based in Houston, is one of the nation’s largest and most
influential debt consolidation services and financial technology
organizations. By standing alongside clients wherever they are in
their debt journey, Beyond Finance uses personalized consolidation
services and innovative technology to give them the clarity,
confidence and tools they need to move beyond debt. Since 2017,
Beyond Finance has moved over 300,000 clients beyond more than $1
billion of debt. In 2024, Beyond Finance was awarded with
ConsumerAffairs’ inaugural “Buyer’s Choice Awards” for Best
Customer Service, Experience with Staff, and Transparency related
to personal finance and its debt consolidation programs. They have
additional offices in Houston, Texas and Chicago, Illinois. For
more information, visit BeyondFinance.com.
MEDIA CONTACT:Yolanda
Schuffordyschufford@beyondfinance.com
Shawn Paul Woodswood@beyondfinance.com
A photo accompanying this announcement is available at
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