“Regardless of socioeconomic status, many consumers are still feeling the aftershocks of the past recession,” said Jackie Warrick, President and Chief Savings Officer at CouponCabin.com. “With the lessons of the past few years fresh in their minds, it’s important now more than ever for consumers to be financially savvy. Even though current conditions are tough, it’s time to go back to the basics of budgeting, saving, and planning for the future to ensure financial stability.”
A variety of different hurdles are contributing to financial insecurity among U.S. adults. When asked why they don’t feel financially secure, respondents said the following:
• Live paycheck to paycheck – 59%
• Underpaid at my current job – 41%
• Unexpected expenses always pop up – 40%
• Can’t keep up with my bills – 35%
• Debt like student loans and car payments – 32%
• Credit card debt – 26%
• The recent stock market ups and downs – 21%
• Amount owed on mortgage – 16%It's one of the basic fundamentals of being financially secure, yet many U.S. adults said that they put very little money away in savings each month. Nearly half (47%) said they don't put anything into savings each month, while one-in-10 (11%) put away less than $100. On the flip side, nearly one-in-five (19%) report they save $400 or more each month.
For those with household incomes of more than $75,000 per year, they too have trouble earmarking money for the future. Twenty-nine percent of those adults said they don't put anything into savings each month.
The six-month emergency fund, which experts say is necessary money put aside for six months of living expenses, is another savings difficulty for most U.S. adults. More than half (52%) of U.S. adults said they don't have such a fund, while 40% of those with household incomes of more than $75,000 said the same.
When times get tough, some adults report they tap into their long-term savings plans to get by. More than one-in-10 (12%) said they have taken money out of their 401(k) in the last year to get by, while 15% said they have reduced their 401(k) contributions.
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