"Making day-to-day decisions on spending money is one of the biggest challenges consumers face in keeping their financial lives in order," according to the Consumer Financial Protection Bureau. Larger purchases such as televisions and motor vehicles are often deliberate and planned. It is smaller, impulse purchases and special occasions which are far more likely to blow out the budget and eat away at savings.
Money management can be a foreign language for many. Net worth, assets, depreciation, interest rates, APR, and other financial terms mean little to those individuals not working within the financial and investment sectors.
While keeping on budget can be an issue for many American consumers, many are operating their homes entirely without a financial plan. It is possible to get by sans spending framework. However, running even a single-person household like this long-term typically leads to overspend – resulting in bad spending habits and debt.
Despite a penchant for continually monitoring their accounts, most Americans are still worried about their financial future. Nearly half of US consumers say a $400 emergency would put them in financial hardship. Even more, report their savings is less than $1,000 (CNN Money).
We’ve all heard (discussed, planned, promoted, etc.) terms such as “financial wellness,” “financial literacy,” and even “financial health.” They are well known within the financial services industry as studies have shown US consumers have a bad relationship with money. It has also been proven that most people have a desire to improve their situation regarding money and achieve financial freedom.
Well over half of Americans (66%) check their bank account at least once per week. A similar majority (73%) also reported they carry two or fewer credit cards. (Lexington Law) Another 53% consider paying off debt a high priority. Surely, such signs are indicative of financial responsibility?
Millennials have quickly overtaken Baby Boomers and Generation X as the dominant generational demographic in the world.
Goods and services have swiftly begun to leverage the growing buying power of this age group. But how are these consumers managing their finances?