By Jorge Vazquez
24 Sep 2023, 08:00 AM EDT
The economic issue is at the forefront of Americans’ minds these days, as demonstrated by a recent LendingTree survey, which reveals that 56% of Americans fear their future financial situation, and 35% are losing sleep over it. money.
“With rising prices and economic uncertainty, Americans are facing concerns about their future financial well-being. And as consumers take on more and more personal loan debt to make ends meet, the challenges seem endless,” the online lending site’s report says.
According to the survey, parents with children under 18 and those who earn less than $35,000 a year are the most likely to say they are worried about what the future holds for their wallets (both 63%), followed by Generation X (61%) and women and millennials (both 60%). Those who may need more rest (parents with young children) are also the most likely to have restless nights due to financial worries (45%).
LendingTree also found that inflation, higher costs, and personal spending vices make it difficult for some to increase their savings, adding to financial woes:
More than a quarter of Americans (27%) did not deposit funds into their savings accounts in the past 12 months, even though 79% of Americans consider themselves good money managers. Inflation or a higher cost of living (61%), low income (51%) and large unexpected expenses (31%) are the biggest obstacles for those who have not saved. Additionally, 39% of Americans admit that vices get in the way of saving money, with overspending and tobacco products being the most cited guilty pleasures.
Among those who have been able to increase their savings, 66% say they follow certain budgeting or savings strategies, and the majority (85%) mostly stick to their spending limits.
In addition to sticking to and setting a budget, 58% say cooking more at home instead of dining out has helped them increase their savings, while 57% look for bargains or shop for deals. However, even among those who managed to save money last year, 72% regret not putting more money in the bank.
The survey found that there can be a multitude of reasons to save money, but successful savers primarily save cash for general savings (43%), emergencies (40%) and vacations (37%).
And while not everyone works on the weekend, 35% of Americans agree that they save during the week to spend on the weekends; This is especially true for men and the younger generations.
“Many Americans have very little room for financial error, even in the best of times,” says Matt Schulz, chief credit analyst at LendingTree. “If we add to this inflation and rising interest rates, the little room for maneuver they might have had completely disappears. Unfortunately, we can also be our own worst enemy when it comes to our finances. This survey is further proof of that.”
For more details about the survey and its methodology, go here.
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