Does money matter? That’s the question that financial service company Acorns sought to answer in their latest survey, which posed questions relating to money, mental health, and financial security to 5000 Americans. Let’s take a look at the survey’s results.
Financial Anxiety in America
Acorns “Money Matters Report” has revealed an overwhelming sense of unease across the nation.
Rising Costs and Media Influence
Financial instability, as well as the rising prices of groceries, utilities, and rent, are causing panic among adults, but it’s being worsened by the constant bad news the media are putting out.
Americans’ Expectations for the Coming Year
According to the survey, only 35% of Americans feel as though they’ll be more financially secure next year than they currently are, with 44% expecting nothing to change.
How People Feel About Their Finances
When asked how they feel about their finances compared to last year, 46% said they feel the same, 25% feel better, and 25% feel worse.
Gender Disparity
Here’s a closer look. Women are less likely than men to feel more financially secure this year (20% versus 29%). People who are married or in a domestic partnership are more likely to feel better financially this year compared to those who are separated, divorced, or widowed.
Urban-Rural Divide
Those in smaller cities, suburbs, or rural areas are less likely to feel more financially secure than those in major cities (around 20% versus 37%).
Income Brackets and Financial Security
Among those with a household income of over $75,000, 33% feel more financially secure now. Only 14% of those earning less than $40,000 feel the same way. About 10% of those earning less than $40,000 are unsure about their financial security, compared to 2% of those earning $75,000 or more.
Stress and Anxiety
This sense of financial insecurity is taking its toll on Americans, with people reporting increased stress and financial worries. 33% of millennials reported that they feel like they can’t enjoy life because they’re worrying too much about money, compared to 24% of the overall population.
Urban Dwellers
This impacts those living in major cities more than those living elsewhere, with 29% reporting they worry too much about money compared with 24% overall. Major cities seem to be the worst culprits for creating money-related stress. 37% of big city residents reported feeling like finances dominate their lives compared to 29% overall, and 35% believe they won’t achieve their desired lifestyle due to financial issues, compared with only 30% of the overall population.
Top Financial Concerns
When it comes to financial insecurity, the nation’s top-rated worry was the cost of living, followed by the impact of inflation, and then finally, debt. All of this caused more concern among respondents than retirement savings, interest and mortgage rates, and not having enough money in their savings.
Lower Levels of Financial Concern
Acorns found that the silent generation, aged 78 and older, is more than twice as likely as the general population to say they don’t have any financial concerns (22% vs. 9%).
Income and Cost of Living
When it comes to income, those making less than $40k are more worried about the cost of living (37%), while those making over $75k are less concerned (26%) than the total (31%).
Global Conflicts
Over half of respondents reported feeling worse about their finances due to current global conflicts, with 25% saying they were “extremely concerned.” Less than 10% reported feeling unconcerned about the current global climate.
Fear of Homelessness
Perhaps most noteworthy from the survey was that 1 in 4 Americans reported feeling worried that they may end up homeless as a result of their financial situation.
Generational Concerns
Acorn found that Gen Z and millennials were almost three times as likely to worry about this than other generations, indicating that the younger generations are significantly concerned about their financial stability and housing security.
Emergency Preparedness
Despite this, Acorns results do show that Americans are trying their best to prepare for the worst. Over 30% of Americans with emergency funds have been saving more this year, and 54% of respondents reported having an emergency fund.
Younger Generations Saving More
The younger generations are saving more than the average population this year. 32% of the average population reported saving for a rainy day, compared to 37% of Gen Z and 40% of millennials.
Insights from Acorns Survey
While Acorns survey does indicate growing worries about finances across generations, it also shows that good financial planning has never been more important. It’s a reminder for everyone to take positive steps in managing their finances and to begin prepping for unexpected challenges.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
