Children offer us an unfiltered look at how our brains react to sales and marketing. When they see something that strikes their fancy, they want it right then. Toddlers, especially, show little patience or consideration for the cost or longevity of the item they desire. Yet, should their whimsy be indulged, the thing they “needed” at the store often gets discarded in short order.
We’ve all spent at least a month in quarantine. Fairs, concerts, playgrounds, movies, and more have all been delayed or completely shut down. Schools have closed. We’ve all be forced to see things from a new perspective. Rather than a waypoint between activities and a place to rest our heads, home is now where we all have spent most of our time.
While we are all a bit relieved to see quarantines being eased, there are some lessons about life and frugality that we should take away from this experience.
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.
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).
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?
Today’s consumers admit to knowing very little about managing finances. But they want to learn. Even better, they want to learn from you. J.D. Power reports 78% of US retail banking customers would prefer to receive financial advice or guidance from their bank or credit union.
Millennials (1977-1995) and Generation Z (1996 to 2015) will represent nearly two-thirds of the world population by 2019. These two generations have hardly lived without computers and smartphones and have heralded the wide-spread use of tablets, smart phones, social media, and texting. They have also brought forth increasing consumer demand for security, personalization, and self-service.
A majority (78%) of US workers live paycheck to paycheck, according to a 2017 CareerBuilder Survey. One in four workers do not contribute to savings most months. Higher salaries do not end money issues, either. Of workers making $100,000+, nine percent (9%) are living paycheck to paycheck. The percentage only rises as income decreases – with twenty-eight percent (28%) of those making $50,000-99,999 and fifty-one percent (51%) of those making under $50,000 also counting on the next payday.