Although the majority of consumers who participated in the National Financial Literacy Survey gave themselves good grades for their knowledge of personal finance, many admitted that they aren't saving money for the future.
Although the majority of consumers who participated in the National Financial Literacy Survey gave themselves good grades for their knowledge of personal finance, many admitted that they aren't saving money for the future.
The survey, of 1,000 adults, was conducted online March 13-16 by Rochester, N.Y.-based global research firm Harris Interactive Inc. The third annual survey was conducted on behalf of the National Foundation for Credit Counseling of Silver Spring, Md.
Although 58% of those surveyed gave themselves an A or B on their knowledge of personal finance, 41% gave themselves a C, D or F.
A full 57% said that they didn't have a budget, while 42% said that they had a budget and kept close track of their spending.
Still, 39% said that they had a “somewhat good idea” about how much they spent on food, housing and entertainment, though they didn't keep track of spending, 11% said that they didn't have a good idea but did keep track of overall spending, and 7% said that they didn't know how much they spent and didn't monitor overall spending.
Saving was another challenge for the participants.
A full 32% reported that they didn't have any savings, excluding retirement. Of those without savings, 59% said that it was because they had limited income.
If faced with a financial emergency, 57% said that they would borrow from family and friends, 29% said that they would use a credit card, and 26% said that they would apply for a loan.
“The survey reveals startling deficiencies related to financial stability,” Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, said in a statement. “The good news is that tools are available for consumers to take control of their financial future, but it is up to the consumer to reach out for that help.”
